The Weak Dollar and Global ETFs
We received a query from a reader on ETR’s Speak Out forum regarding global ETFs. Because many of our readers might be interested in this subject, I thought I’d answer it here.
This is the question…
"Can one invest in global or foreign ETFs by using a company like TDAmeritrade - and how do you find the best ones? Are these a good hedge against the falling dollar?”
And this is the answer…
You should be able to buy a global ETF with any brokerage firm. You can punch in the ticker symbol of the ETF just as you would for a stock trade, and follow the same steps from there.
As for how to pick the best ones… that’s a little tougher. Personally, I use the same criteria to pick an ETF that I use to pick a stock. I look for a fundamentally strong economy, a good technical picture, and, ideally, an ETF that is being overlooked by other investors. Two that jump out at me right now are the iShares MSCI Brazil Fund (EWZ) and the iShares MSCI Hong Kong Fund (EWH).
Regardless of whether or not the dollar continues to fall, there are better opportunities outside the U.S. at this time. Our economy is declining and others are growing. Meanwhile, getting some exposure to foreign markets keeps getting easier and easier. And at a time when our market is vulnerable, investing in a global ETF is a wise investment decision.
[Ed. Note: Rick Pendergraft is a professional trader and market analyst. In Rick's new investment service, he gives easy-to-follow, step-by-step advice that you can use to create consistent, automated income. Learn more about how he can help you produce explosive gains - no matter which way the market is trading - by clicking here.]
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