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

3 Reasons Foreign Stock ETFs Can Outperform U.S. ETFs

NEW YORK (ETF Expert) -- Some writers have expressed little surprise by the extent of the runup in U.S. stocks. It's one thing to be bullish. It's quite another to look at 28% year-to-date gains for the S&P 500 as customary.

Super-sized annual percentage jumps occur more frequently in the initial year of a bull market. That's why one can look upon the 38% in 1975, 26% in 1991, the 26% in 2003 and/or the 23% in 2009 as commonplace. Yet, a 28% rise in the fifth calendar year of a stock bull? One would have to regard the move as having more in common with the irrational exuberance of the latter half of the 1990s.

That's not to say that the monster move to the upside here in 2013 is entirely without reason. The U.S. Federal Reserve has given global investors plenty of ammunition for remaining long U.S. stocks. Nevertheless, the premier opportunities going forward may reside with risk assets that are not only trending higher but have additional advantages.

Here are three justifications for shifting some cash and/or U.S. stock dollars over to foreign stock exchange-traded funds:

Must Read: Regional Bank ETFs Stronger, Financial Sector ETFs Weaker

1. Value. U.S. corporate earnings have been slowing in recent quarters. Sales have been flat. Meanwhile, share prices have soared through the proverbial roof.

On the flip side, corporate earnings in places like the United Kingdom are rocketing. An investor can tap UK potential with iShares United Kingdom (EWU). A series of higher highs for EWU has essentially confirmed a strong uptrend since July.

1 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
AAPL $126.40 -0.16%
FB $87.27 0.41%
GOOG $523.00 0.22%
TSLA $280.13 4.10%
YHOO $39.37 0.10%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs