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. .]Rick Pendergraft
Inspired by his high school economics teacher, Rick Pendergraft fell in love with the markets at an early age. He entered his first investing competition at 17, and opened his first brokerage account before he finished college. At the age of 23, on the third options trade he had ever placed, Rick turned $1,800 into $22,000 in less than a week, when the company he bought became the target of a takeover. He admits it was a stroke of luck, but it was a memorable education as to the leverage that options can provide. After a ten year career in banking, Rick decided to pursue trading full-time. To get his foot in the door, he started out in the sales department at Schaeffer's Investment Research. It was not long before his talent was recognized and he was invited to apprentice under Bernie Schaeffer, one of the top options traders in the world. Rick thrived in his new position and twice received the award for "Top Trader."Rick has developed a loyal following of readers who are grateful for his timely warnings and profitable advice. He is widely recognized as a market expert and has been frequently quoted by Reuters, BusinessWeek, Forbes, USA Today, the New York Times, and the Washington Post. Rick's primary focus is on identifying short and intermediate term rising and falling trends in the major market sectors. His analysis is based on technical factors along with indicators of market sentimentRick lives near Delray Beach, FL with his wife and three children.