Exchange-Traded Funds (ETFs)

While the overwhelming narrative of late in the global markets has been the Federal Reserve’s “taper” talk, not every central bank around the world is following the Ben Bernanke playbook. Last week, there was a meeting of the Bank of England (BOE) that proved that not all minds think alike when it comes to monetary policy and a continued commitment to easy-money stimulus. In his first meeting as governor of the Bank of England, former… Read More

While the overwhelming narrative of late in the global markets has been the Federal Reserve’s “taper” talk, not every central bank around the world is following the Ben Bernanke playbook. Last week, there was a meeting of the Bank of England (BOE) that proved that not all minds think alike when it comes to monetary policy and a continued commitment to easy-money stimulus. In his first meeting as governor of the Bank of England, former Bank of Canada Gov. Mark Carney stirred the pot with a much more detailed statement of the normally terse BOE decision by the Monetary Policy Committee. (To show what I mean by “terse,” the BOE’s June press release was basically two sentences long.)#-ad_banner-# The new Carney-led BOE came with a more detailed statement for July. It essentially signaled that the Bank of England will begin using forward guidance as another tool to keep… Read More

While the overwhelming narrative of late in the global markets has been the Federal Reserve’s “taper” talk, not every central bank around the world is following the Ben Bernanke playbook. Last week, there was a meeting of the Bank of England (BOE) that proved that not all minds think alike when it comes to monetary policy and a continued commitment to easy-money stimulus. In his first meeting as governor of the Bank of England, former… Read More

While the overwhelming narrative of late in the global markets has been the Federal Reserve’s “taper” talk, not every central bank around the world is following the Ben Bernanke playbook. Last week, there was a meeting of the Bank of England (BOE) that proved that not all minds think alike when it comes to monetary policy and a continued commitment to easy-money stimulus. In his first meeting as governor of the Bank of England, former Bank of Canada Gov. Mark Carney stirred the pot with a much more detailed statement of the normally terse BOE decision by the Monetary Policy Committee. (To show what I mean by “terse,” the BOE’s June press release was basically two sentences long.)#-ad_banner-# The new Carney-led BOE came with a more detailed statement for July. It essentially signaled that the Bank of England will begin using forward guidance as another tool to keep… Read More

Many investors are surprised to learn that a large percentage of the stock market gains over the past several decades is due to dividends. While the United States is a hotbed of stocks offering substantial dividend yield, international stocks can provide similar results. Although I would never suggest a portfolio made up of strictly of non-U.S. exchange-traded funds (ETFs), exposure to the international market makes good sense for diversification purposes. These under-the-radar ETFs have strong potential for growth as well as produce a respectable dividend yield while allowing for geographic diversification. DB X-trackers MSCI EAFE Hedged Equity Fund (NYSE: DBEF)… Read More

Many investors are surprised to learn that a large percentage of the stock market gains over the past several decades is due to dividends. While the United States is a hotbed of stocks offering substantial dividend yield, international stocks can provide similar results. Although I would never suggest a portfolio made up of strictly of non-U.S. exchange-traded funds (ETFs), exposure to the international market makes good sense for diversification purposes. These under-the-radar ETFs have strong potential for growth as well as produce a respectable dividend yield while allowing for geographic diversification. DB X-trackers MSCI EAFE Hedged Equity Fund (NYSE: DBEF) Hedged currency ETFs have earned a place in the spotlight this year. While the Federal Reserve has shown its appetite for aggressive easing measures, countries like Australia, New Zealand and a few emerging markets refuse to play along. This difference in strategy results in currency volatility.#-ad_banner-# Without going into unnecessary detail, suffice it to say that this volatility has created a demand for hedged currency ETFs. My favorite is the tiny DB X-trackers MSCI EAFE Hedged Equity Fund. With an average daily volume of about 12,000 shares, its relatively small size has kept it under the radar of many… Read More