NEW YORK (ETF Expert) -- Nearly two months ago, Ben Bernanke announced an open-ended promise for the Federal Reserve to purchase $40 billion in mortgage-backed bonds every month. Prior to the Sept. 13 announcement, investors expected another round of electronic money printing, yet the size and scope of the plan exceeded everyone's expectations. U.S. stocks surged to multi-year highs through the Sept. 14 close.Shortly thereafter, however, U.S. stock assets began to weaken. Not only were corporate revenue reports decidedly weak in October, but many chose to exit riskier assets prior to the presidential election and the subsequent "fiscal cliff" debate. Realistic fears that the same cast of characters may stumble in their efforts to reach an agreement has seen many investors selling first and asking questions later. The S&P 500 has already forfeited 6.3% over the last eight weeks. That said, not every stock ETF has lost ground since Sept. 4. Asian ETFs have actually held steady.
Obviously, if U.S. political leaders fail miserably on minimizing the extent of simultaneous tax hikes and spending cuts, one shouldn't expect Asian ETFs to escape unharmed. On the other hand, if you've ignored emerging markets for years due to uncertainty about a hard economic landing in China, it's time to take another look. Based on a wide variety of
ETF selection criteria, I maintain a healthy allocation to AAXJ as well as an individual country "fave" EWM. The 3.6% annualized dividend yield is two times the 10-year U.S. Treasury. Meanwhile, the country maintains full employment, manageable inflation and steady GDP expansion. Follow @ETFexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.