I recently posted an article about the importance of investing internationally, along with some of the common pitfalls that investors make when doing so.
In short, developed international indices often concentrate in Japan, and emerging markets international indices often concentrate in China, simply due to market-cap weighting. Adding another international index with a dividend requirement can help reduce this concentration, and single-country ETFs can provide a bit of targeted diversification as well.
To complement that piece, I recently published two articles on Seeking Alpha that provide a look into the economies of Singapore and Brazil, which you can own through single-country ETFs.
- The iShares MSCI Brazil ETF (EWZ) currently represents a decent long-term buy compared to global alternatives in my opinion, albeit with significant uncertainty.
- Despite this past year’s strong out-performance, emerging markets have a decade-long period of under-performance that they might be breaking out of.
- Unfortunately, emerging market indices are highly concentrated in China, with little Brazilian exposure. Getting some direct Brazilian exposure can provide welcomed geographic diversification.
- The iShares MSCI Singapore Capped ETF allows easy access to Singapore’s largest companies at a reasonable expense ratio. I consider it a buy.
- The market of the wealthy city-state is currently attractively valued and this ETF offers a distribution yield of 3.2% while you hold it.
- Many investors do not have significant foreign exposure, and the U.S. market is historically expensive. Singapore represents a good portal for investing throughout Southeast Asia.