On big down days like today, one of the things we like to do is to screen for securities that are moving up while most other assets are declining.
International bond ETFs are an asset we can no longer ignore, but as some industry experts have brought up in the past, bond ETF construction has many inherent flaws. The construction flaws in ETFs often stem from the methodology of the indexes which the ETFs track.
Income investors looking to generate cash flow with ETFs can choose from fixed income, dividend and international funds.
To preserve wealth and generate some income, Jim moved a healthy portion of his portfolio to Long Term Treasury Bonds. However, the improving economy combined with the Fed’s massive monetary response to the financial crisis has Jim concerned about the potential for a rising interest rate environment within the next 12 to 18 months.
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.