NEW YORK (ETF Expert) --For months, I've expressed optimism on China's slow-n-steady approach to providing measured stimulus to its economy.Rather than drastically cut interest rates or entertain unconventional bond-buying measures like their central bank counterparts in the developed world, China's leadership allowed its slowdown to play itself out. The result? China's manufacturing gauge (PMI) indicated that the segment expanded for the first time in three months. Additionally, we have seen several months of improvements in manufacturing activity, suggesting that contraction has run its course. In
The iShares Global Telecom Fund ( IXP) has had modest success in 2012; downside pressure is due in large part to foreign exposure, particularly in Spain. Yet, the dividend yield is roughly 4.75% and its constituents have the capacity to raise their dividends annually. Moreover, with a three-year beta of a mere 0.66, the volatility is a fraction of prominent benchmarks like the S&P 500 or the MSCI All-World Index. IXP has shown relative weakness since the S&P 500 hit multi-year highs back on Sept. 14. In addition, IXP did not find support at its 50-day moving average and is approximately 5% below its recent peak. Nevertheless, a pullback to the 200-day trendline may prove to be an
ideal entry point for dividend investors. Indeed, the income can be counted on with less volatility than world stock benchmarks and at a price discount between 7% and 10%. This article was written by an independent contributor, separate from TheStreet's regular news coverage.