This Day On The Street
Continue to site
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

Country ETFs vs. U.S. Stock ETFs

Naturally, it is easy to identify the reasons why certain countries reside where they do. Virtually every country in the eurozone has a current CAPE that is lower than its median.

However, France and Belgium have more years of meaningful data. It is simply not clear to investors whether the eurozone can survive with dissimilar countries struggling to find a pathway out from underneath the weight of an endless sovereign debt crisis.

According to the historical research on global value, however, a buy-n-holder might choose to give iShares MSCI France (EWQ) or iShares MSCI Belgium (EWK) a shot.

Brazil and Taiwan might be considered bargains from the ranks of the so-called emerging market countries. While China's high profile slowdown may have hindered these exporting nations from realizing better results in their securities markets, China's improving economic prospects may help place Brazil and Taiwan on a more prosperous path.

Investors who see value in the global valuation approach might like iShares MSCI Taiwan (EWT) and/or iShares MSCI Brazil (EWZ).

Personally, I have more confidence in China's policies than those of a fractured eurozone. It follows that I am more likely to select an Asian tiger asset like EWT or a materials mega-cap like EWZ long before I could see myself investing in an unhedged European country ETF.

On the other hand, no matter what exchange-traded vehicle I purchase, I would not blindly hold the investment for a decade based on valuation metrics. I always have a plan to sell and/or hedge.

It is important to talk about several countries that came up as severely overvalued. Both the United States as well as Thailand did not fare particularly well with this global valuation methodology. Although I do not view Shiller's 10-year cyclically adjusted P/E (CAPE) as a definitive valuation method (or any valuation approach as a definitive method), it is still another weapon in the bear's arsenal.

Indeed, iShares MSCI Thailand (THD) has practically levitated 50% from its summertime lows, sits 22% above its long-term 200-day trendline and is likely to hit a profit-taking patch.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

Gary Gordon reads:

Real Clear Markets
Jeff Miller
Charles Kirk
On Twitter, Gary Gordon follows:

Jonathan Hoenig
Doug Kass
Hard Assets Investor
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
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.05 -0.70%
FB $105.39 -0.33%
GOOG $748.82 0.07%
TSLA $229.71 5.30%
YHOO $33.16 0.62%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs