Barron’s has a lead article titled “Invest in Japan.” What do you think? Time to jump in after the huge tragedy? From my own experience, tragedies are one of the best times to jump in. Take 9/11, quick slide, nice and quick recovery. Will Japan be the same? Nobody really knows, especially with the current level of uncertainty.
If you do want to invest, as I’m thinking about it, I think investing in ETFs is the smart way to go.
Exchange-Traded Funds | |
Ticker | Currency |
FXY | CurrencyShares Japanese Yen Trust |
JYN | Barclays iPath JPY/USD |
JYF | WisdomTree Dreyfus Japanese Yen |
Stocks | |
EWJ | iShares MSCI Japan Index |
DXJ | WisdomTree Japan Hedged Equity |
DFJ | WisdomTree Japan SmallCap Dividend |
ITF | iShares S&P/Topix 150 Index |
JSC | SPDR Russell/Nomura Small Cap Japan |
SCJ | iShares MSCI Japan Small Cap Index |
JPP | SPDR Russell/Nomura PRIME Japan |
While at the Barnes & Noble today, I got drawned in by a title in US World & Reports: The 100 Best Mutual Funds for the Long Run. Sure enough, I found a few funds that I think are top quality.
The Yacktman Fund (YACKX)
Comparing it to Fidelity Contrafund, which is considered one the top funds, I can see why Yacktman is on top: 3 year return of 8.9% is much better than -0.2% for the Fidelity fund.
Sextant International (SSIFX)
Very good returns. Better than Marsico Global, also a top rated fund.
Fidelity Canada (FICDX)
Very good returns.
In my retirement accounts, I only hold Mutual Funds. Why? More security. More diversity. I’m also open to holding ETFs, which are almost like Mutual Funds, but I try to stay away from stocks.
It’s good to rebalance every year or so. It’s been a while since I’ve done it. But because we had a decent dip recently, I think it might be a good time for me to do so. Plus, I have come across some excellent Mutual Funds in the Kiplinger’s magazine — I always try to buy their yearly issue focused on Mutual Funds.
Here are some funds which I like and which I picked mostly from that issue. I’m entering trades as I’m writing this post.
Loomis Sayles Bond (LSBRX)
Pimco Total Return (PTTAX)
A pair of the best and most famous bond funds, as per Kiplinger’s.
Vanguard Total Bond Market Index (VBMFX) (also available as an ETF, (BND))
Another of our favorites, same source.
Harbor Fund (HABDX)
The portfolio of Harbor more or less reflects the distilled wisdom of Bill Gross and his colleagues at Pimco. Kiplinger’s top 25 pick.
Vanguard Infaltion-Protected Securities (VIPSX) (also available as an ETF, (TIP))
For added security, it’s always have to have some TIPS.
Fidelity Contrafund (FCNTX)
Recently reopened. Kiplinger’s Top 25.
Longleaf Partners (LLPFX)
Kiplinger’s Top 25. Impressive returns.
Marsico Global (MGLBX)
Very good returns. Kiplinger’s top 25 pick.
Vanguard Global Equity Fund (VHGEX)
Good returns as well. I like it.
There you have it!
Here are some funds that offer diversified exposure to the emerging markets in Europe, Asia, Africa/Middle East, and Latin America. These are taken from the latest BusinessWeek, Dec 28th edition.
Sorted by 2009 Total Return
Easter European Equity (VEEEX)
98% Europe, 1% Asia, 1% Latin America
Fidelity Emerging Europe, Middle East, Africa (FEMEX)
70% Africa/Middle East, 30% Europe
SPDR S&P Emerging Middle East & Africa (GAF)
100% Africa/Middle East
Claymore/BNY Mellon Frontier Markets (FRN)
51% Latin America, 26% Africa/Middle East, 17% Europe, 6% Asia
Templeton Frontier Markets (TFMAX)
50% Africa/Middle East, 25% Asia, 22% Europe, 3% Latin America
There is a very good article on investing in the latest Kiplinger’s (Feb 2010) “Make A Buck Off A Sagging Dollar.” Their view is that the dollar is on the decline, and you better diversify. They have a few suggestions how you can do that.
I also think the long term the dollar does not look so good. Especially when comparing it to emerging markets.
Read on…
You can invest in emerging-markets bonds through Pimco Emerging Local Bond (PLBDX). “Pimco invests in 15 markets, including Poland, South Africa, Mexico, and Thailand.” It’s on the expensive side, though, with an annual cost of 1.35%. I try to stay under 1%, but this might be worth the price.
For a lower cost alternative, check Wisdom Dreyfus Emerging Fund (CEW). “This exchange-traded fund, launched last summer, uses futures contracts to provide exposure to money-market rates of 11 emerging markets currencies, including the Polish zloty, Chinese yuan and Chilean peso.” Annual fee is 0.55%.
Invest 10% in all of these 10 ETFs and you got yourself something close to what an Ivy League portfolio looks like. For more information, check theivy.portfolio.com
iPath S&P GSCI Total Return Index (GSP)
iShares Barclays TIPS Bond (TIP)
PowerShares DB Commodity Index Tracking (DBC)
SPDR Dow Jones International Real Estate (RWX)
Vanguard Emerging Markets Stock (VWO)
Vanguard FTSE All-World Ex-US (VEU)
Vanguard REIT Index (VNQ)
Vanguard Small Cap (VB)
Vanguard Total Bond Market (BND)
Vanguard Total Stock Market (VTI)
Reference
Kiplinger’s Magazine – 11/2009 Issue
It’s not easy to be in the stock market in the past few days and weeks. I had a feeling that the stock market recovered a bit too high too soon. I should have capitalized on that. How? By betting that it will correct itself. How do you do that? By “shorting,” which is a way to make money when a stock goes down: you’re basically betting that a stock will go down, and when it does, you make money. I just discovered that there are now ETFs designed specifically for that purpose. That’s a very good investor’s resource, in my opinion.
Here are a few ETFs that do the “shorting” for you:ProShares Ultrashort ( (QQQ)) – rewards a fall in the Nasdaq;Proshares Ultrashort S&P 500 ( (SDS))- rewards a fall in the S&P benchmarkProshares Ultrashort Dow 30 ( (DXD)) – rewards the fall in the bluechip industrials.
Rydex recently rolled out eight new ETFs, half of which offer double-inverse plays on the energy, financial, health care and technology sectors. The Rydex Inverse 2x Select Sector Financial ( (RFN)) – up more than 8 percent in light Thursday trading.
Keep in mind that “shorting” can cause unlimited losses: if stocks go up, you lose. But these ETFs do limit the risk somewhat and that is a very good think.
Reference
Shorting Stocks Could Be Way to Play This Market, cnbc.com article
Being well diversified is the key to long-term investing. If you were not, you probably learned from the recent correction. I began moving towards big, dividend paying, safe companies for some time. As a result, my portfolio is in good shape after the correction. The fact is, though, the economy is slowing and might even go through a recession. It doesn’t mean that there are no good picks. Actually, the best time to buy is during market downturns.
Here are some of the stocks and ETF that I’m currently looking at. I think technology is a good place to be in the near future. There is decent growth and the stocks do not look overpriced. I am going to have to pick on technology oriented ETF and invest in it.
Software and Technology ETFs
Software ETF ( (SWH))
iShares S&P GSTI Software Index Fund ( (IGV))
PowerShares Dynamic Software ETF ( (PSJ))
Technology Select ETF ( (XLK))
Town Sports Intl ( (CLUB))
Strong membership growth; profits should follow.
Sorry. No data so far.