Exchange traded funds are a great way to get exposure to a particular market, asset class or country. If you have a feeling that Europe might do well – like Paul did last March and Peter did earlier this year – you could invest in the iShares Europe ETF (IEU) or the Vanguard All-World ex US Shares Index (VEU). Both these ETFs have outperformed over the last 12 months, but especially in the last six months.
IEU
Source: Yahoo!7 Finance, 5 March 2015
VEU
Source: Yahoo!7 Finance, 5 March 2015
Over the past 12 months Peter has also suggested broad market ETFs – the SPDR S&P/ASX 200 (STW) was up over 12% for the 12 months to the end of February – and oil ETFs, which Peter wrote about last December.
ETFs and exchange-traded products (ETPs) are becoming a very popular way for investors to access certain markets and strategies. For example, international equities manager Magellan today launched a listed version of its Magellan Global Fund (MGE), which will be available on the Australian Stock Exchange’s Aqua platform.
“The success of the current generation of ETFs globally points to the likely rapid growth in the next generation of ETMFs (exchange traded managed funds) as the needs of investors, regulators and fund managers find an appropriate equilibrium,” Hamish Douglass, Magellan’s CEO and chief investment officer said.
And if you have some scruples when it comes to investing, you might be interested in the UBS IQ ethical ETFs. They have just launched four ETFs: the UBS IQ MSCI Australia Ethical ETF (UBA); UBS IQ MSCI World ex Australia Ethical ETF (UBW); UBS IQ MSCI Europe Ethical ETF (UBE); and UBS IQ MSCI USA Ethical ETF (UBU).
These are ETFs over indices tailored for UBS by MSCI with an ethical bent – i.e. they exclude certain stocks. UBS will launch two more ethical ETFS will be launched this month.
“We’ve got another four in our pipeline. Whether they get launched this year or next year we haven’t decided,” head of UBS global asset management, Bryce Doherty, said.
“We’ve definitively got fixed income in the pipeline.”
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