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

European Bond ETF Targets Volatile Currencies

The sector allocations are diversified with financials at 46% of the fund, industrials at 42% and utilities at 11%. For an equity fund, that would be a lousy mix in terms of diversification, but debt issuance is heaviest in the financial sector. I would also note that the definition of industrial might be a little more liberal given that Glaxo is a drugmaker and AT&T is a telecom company. There are also bonds from Statoil (STO - Get Report), a Norwegian oil company.

It should be clear that if the currencies perceived to be most at risk for debt downgrades, the euro and the pound, continue to decline against the U.S. dollar, the SPDR Barclays Capital International Corporate Bond ETF will struggle as well. In terms of decentralizing issuer risk, the fund seems like it is well put together. That allows investors who predict the euro is done declining to adjust their portfolios and pick up a little yield as well.

At the time of publication, STO was a client position.

Roger Nusbaum is a portfolio manager with Your Source Financial of Phoenix, and the author of Random Roger's Big Picture Blog. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Nusbaum appreciates your feedback; click here to send him an email.

2 of 2

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
VE $18.06 1.48%
GE $27.25 0.00%
GSK $47.29 0.00%
IBND $31.43 0.00%
STO $19.93 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs