U.S. investors have fully embraced the idea of diversifying their portfolios with international equities. However, investing outside the border of the U.S. exposes portfolios to currency fluctuations.
Category: Stay Current
With low rates on money markets and CDs, investors have turned to bonds in a big way. However, as we get closer to the day when the Fed changes interest rate policy, bond investors are looking for other ways to supplement the income from their portfolios.
With the city of Harrisburg, PA on the verge of bankruptcy and other cities and states in financial trouble, investors should be revisiting the role of tax-exempt bonds in their portfolios. ETFs offer investing possibilities to investors seeking tax-exempt income without the risk of exposure to a single municipality or state.
Portfolio diversification calls for spreading investment risk across asset classes and geographies. In many cases, exchange traded funds offer investors the opportunity to do both.