International markets appear to offer some interesting investment opportunities, particularly relative to domestic stocks. International markets have underperformed U.S. markets for several years, which has opened up the opportunity for some international stocks to play catch up. Valuation metrics also appear to favor international markets. Using the SPDR MSCI ACWI (ex-US) ETF (CWI) as a proxy for international markets and the SPDR S&P 500 ETF (SPY) as a proxy for U.S. markets we find that yield, forward price to earnings, and price to book metrics all favor CWI.
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Source: spdrs.com & Morningstar
Closed end fund investors looking to allocate capital internationally will find few broad international funds. There are many country specific, region specific, and world funds but only a handful of diversified international funds. The BlackRock International Growth & Income Trust (BGY) is one of these funds. BGY offers competitive performance and an 8% distribution,
This is the fourth piece in Seeking Alpha's Positioning for 2014 series. This year we have once again asked experts on a range of different asset classes and investing strategies to offer their vision for the coming year and beyond. As always, the focus is on an overall approach to portfolio construction.
Casey Smith is President of Wiser Wealth Management, a Marietta, Georgia-based fee-only fiduciary wealth management firm offering asset management, tax preparation, estate planning and financial planning services. Wiser's unique investing techniques have earned Casey speaking engagements at top ETF conferences around the world. When not running Wiser Wealth, Casey doubles as a pilot for an Atlanta-based commercial airline.
Seeking Alpha's Abby Carmel and Jonathan Liss recently spoke with Casey to find out how he planned to use ETFs to position clients across a range of healthy asset classes in the coming year.
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