This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Single-Country ETFs Get a Bad Rap

A Simpler View

Articles like this frustrate me to no end because they do nothing to try to help readers learn how to explore and assess various investment choices. Morningstar notes the difficulty of "examining the economic and political factors at work in individual countries and trying to use this data to pick winning funds on a consistent basis."

I actually think this is 180 degrees incorrect. Just about every country I have explored as a potential investment has far fewer moving parts than the U.S. market and economy, making them easier to analyze. More often than not, economic strength (relative to the region) can go a long way toward putting the odds in your favor. You guarantee yourself nothing, but look back at my articles on Spain , Australia , Malaysia and Sweden . I promise you the analysis was very simple, possibly due to the lack of complexity compared with the U.S., of these countries.

It's Not What You Use, It's How You Use it

We learned during the tech bubble that owning a search-engine stock, an ISP stock and a B2B stock did not make for good diversification. So it is that a fund from Taiwan, Thailand, Malaysia and Singapore taking up 30% of a portfolio is unlikely to be good diversification either. This would be a valid argument against certain uses of single-country funds, not against the funds themselves.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EWS $10.43 0.77%
SPY $193.44 0.87%
EWK $16.78 0.96%
AAPL $110.09 2.20%
FB $88.57 1.50%

Markets

Chart of I:DJI
DOW 16,230.49 +172.14 1.07%
S&P 500 1,925.70 +11.85 0.62%
NASDAQ 4,675.5490 +39.4440 0.85%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs