PIMCO Blesses Australia, Canada And Norway
According to the International Monetary Fund, the U.S. dollar currently represents about 60% of global reserves held by emerging nations, down from about 70% a decade ago. Analysts at PIMCO have some idea of what's replacing it and it's not the Euro.
The commodity rich nations of Australia, Canada and Norway are poised to become some of the developed market leaders of over the next five years, according to PIMCO. Each has been hiking interest rates and their commodity producers have seen strong growth. Overall, these three developed markets still remain attractive for capital investments. For investors looking for safety and developed market exposure, the three nations could be a great bet.
Adding that exposure can be done through the iShares MSCI Australia Index (NYSE: EWA), iShares MSCI Canada Index (NYSE: EWC) and Global X Norway ETF (NASDAQ: NORW). Each tracks some of the biggest firms in their respective nations and have returned 3.5%, 2.7% and 4.5%, in that order.
Small-cap exposure for Canada and Australia can be had with the IQ Australia Small Cap ETF (NASDAQ: KROO) and IQ Canada Small Cap ETF (NASDAQ: CNDA).
