Five International Sector ETFs Your Broker Forgot To Mention
Without a doubt, scanning the globe for investment opportunities has been made infinitely harder by Europe's sovereign debt crisis and soaring inflation in a number of formerly stalwart emerging markets.
The other side of that equation is two-fold. First, U.S. investors should always have some international exposure in their portfolios, whether its developed or emerging markets. Second, scores of international sector ETFs are now trading at almost fire-sale prices thanks to the recent market slide.
Here's a good mix of international sector funds from developed and emerging markets that offer plenty of potential should the market change its bearish ways.
SPDR S&P International Energy Sector ETF (NYSE: IPW): These aren't good times for oil prices and oil stocks and that's due to well-documented fears about global economic growth. It's a tired, but accurate excuse. So why bother with the SPDR S&P International Energy Sector ETF with its broken chart and myriad issues facing the oil sector? Because global equities aren't likely to rebound without the help of energy stocks.
iShares S&P Emerging Markets Infrastructure ETF (Nasdaq: EMIF): The iShares S&P Emerging Markets Infrastructure ETF is quite possibly the epitome of an emerging markets sector ETF that has a healthy does of unrealized potential. Everyone knows that emerging markets are going to be spending trillions of dollars on infrastructure in the coming years, but that hasn't been priced into EM infrastructure ETFs. EMIF's woes are easy to explain: Almost 57% of the ETF's weight is devoted to Brazi and China. A better entry point probably awaits the patient investor.
iShares S&P Global Consumer Staples Index Fund (NYSE: KXI): Kind of, sort of “international” the iShares S&P Global Consumer Staples Index Fund is very much like its rival, the Consumer Staples Select SPDR (NYSE: XLP) with a slight international bias. KXI is home to many of the same stocks as XLP, but the former does allocate about 42% of its weight to the ex-U.S. theme.
SPDR S&P International Utilities Sector ETF (NYSE: IPU): Considering that the SPDR S&P International Utilities Sector ETF is more than three years old and has just $6.82 million in assets under management, a legitimate concern with this fund is that it may eventually be sent to the ETF dumpster. That's just a theory. Here in the real-world, the SPDR S&P International Utilities Sector ETF offers no U.S. exposure and a nice 5% dividend yield.
WisdomTree Global ex-U.S. Real Estate Fund (NYSE: DRW): REITs have been getting punished lately and the WisdomTree Global ex-U.S. Real Estate Fund is no exception. Still, this might be one REIT ETF that should be atop investors' list of REIT options to keep a close eye on to do some bargain shopping with. The WisdomTree Global ex-U.S. Real Estate Fund could fall to $23, but if support holds firm there, small positions can be established.
DRW allocates more than 45% of its weight to Australia and Hong Kong and currently features a whopping 12.6% dividend yield.
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