Zacks.com ETF Strategist Eric Dutram highlights: Five Great Global ETFs for Complete Equity Exposure - Press Releases
01 May 2012 - 6:30PM
Zacks
For Immediate Release
Chicago, IL – May 1, 2012 - Stocks and funds in this article
include: iShares MSCI ACWI Index Fund
(ACWI), Vanguard Total World Stock ETF
(VT), iShares MSCI World Index Fund
(URTH), SPDR MSCI ACWI IMI Fund
(ACIM), Accuvest Global Opportunities ETF
(ACCU). Eric Dutram looks at five ways
investors can gain access to global markets via ETFs.
Five Great Global ETFs for Complete Equity Exposure written
by Eric Dutram of Zacks Investment Research:
Over the past few years, ETFs have gained in popularity among
sector-focused investors and those looking to do short-term trades.
Leveraged and niche ETFs have seen huge inflows as a result,
leaving many of their broader ETF counterparts in the dust.
Yet as markets have become shakier—and more correlated-- it
could be worth it to take a more global approach to some portion of
a portfolio. By doing this, and spreading risks around a host of
nations and sectors, overall volatility can be lowered while still
maintaining high levels of stock exposure (see more on ETFs at the
Zacks ETF Center).
Furthermore, from a long-term perspective, an allocation to a
global ETF could be a very cost effective way to achieve access to
a variety of nations, both emerging and developed, and their
respective markets. By using this strategy and dollar cost
averaging, investors can make a broad bet on global growth without
having to worry about sector or national specifics.
For these more hands-off investors, or those looking to make the
broadest play possible, we have highlighted five of these global
ETFs below. These funds look to cheaply and easily provide
investors with complete exposure to equity markets around the
world, irrespective of sectors. While they all have a similar
focus, there are several key differences that investors need to be
aware of before considering making a purchase in any of these
‘one-stop shop’ ETFs:
iShares MSCI ACWI Index Fund
(ACWI)
This global ETF tracks the MSCI ACWI Index, a benchmark for
global stock performance that looks to capture at least 85% of the
total market capitalization in the world. With this focus, the fund
holds over 1,200 securities in its basket, charging investors 34
basis points a year in fees (read Three Overlooked Emerging Market
ETFs).
In terms of sector exposure, the fund is tilted towards
financials (16%), and technology (13%), while energy and cyclical
consumer make up 11% each of the product as well. Country
allocations are heavily tilted towards the U.S.—47% of the
total—while a host of developed markets round out the rest of the
top seven nations, although developing countries do receive some
allocation as well.
The product is extremely popular among all stripes of investors
as it has over $2.6 billion in AUM despite being just a little over
four years old. The global ETF also has an impressive daily volume
of over 700,000 shares while the annual yield—at 2.2%-- is nothing
to sneeze at either.
Vanguard Total World Stock ETF
(VT)
Vanguard’s entrant in the space is VT, a global ETF that follows
the FTSE Global All Cap Index. This benchmark provides investors
with exposure across a variety of markets, holding nearly 750
securities in total and charging a rock-bottom 22 basis points in
fees per year (see Ten Biggest U.S. Equity Market ETFs).
For the rest of this ETF article, please visit Zacks.com
at:
http://www.zacks.com/stock/news/74073/five-great-global-etfs-for-complete-equity-exposure
Disclosure: Officers, directors and/or employees of Zacks
Investment Research may own or have sold short securities and/or
hold long and/or short positions in options that are mentioned in
this material. An affiliated investment advisory firm may own or
have sold short securities and/or hold long and/or short positions
in options that are mentioned in this material.
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Contact: Eric Dutram
Company: Zacks.com
Phone: 312-265-9462
Email: pr@zacks.com
Visit: www.Zacks.com
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