With the violent sell-off in emerging markets earlier this year, our very own Tim Strazzini has uncovered some trading vehicles to play the safer, more developed parts of the world.
Tim says many viewers see the returns coming out of emerging markets and are consequently asking financial advisors about ETF’s.
Tim says one of the things you run into when you own a big basket such as iShares MSCI Emerging markets (EEM), or when you buy stocks through the FXI – you get all of them, including those which don’t have to abide by US GAAP reporting standards.
Tim says there are a couple ETF’s out there that just represent developed country stocks that trade as ADR’s on the NYSE. Tim likes the BLDRS Developed Markets 100 ADR (ADRD) and the BLDRS Asia 50 ADR Index (ADRA). They are higher quality, lower risk names. They are less volatile.