Trading Tactics Matter with International ETFs
Thursday, November 19th, 2009Morningstar submits:
By Patricia Oey
For most investors, we recommend a 20% to 25% allocation in foreign equities, given their diversification benefits within a portfolio. Investing in foreign equities provides a hedge against a weakening United States dollar and allows for exposure to faster-growing economies. Passively managed ETFs that aim to cover a broad regional or country index are an easy way to invest in macroeconomic themes. Investors have enthusiastically embraced this asset class in 2009. For the year to date through October, net inflows into international stock ETFs reached almost $23 billion, accounting for almost 36% of total net flows into ETFs.
