2 ETFs To Help Spread the Risk


Jack Colombo Image Jack Colombo Editor, Forbes/Lehmann Income Securities Investor

Wherever you turn, there’s some doomsday scenario lurking in the shadows…and until that changes, you’re best to use ETFs to diversify the risks that come along with these worries, writes Jack Colombo of the Forbes/ISA Closed-End Fund and ETF Report.

It seems that most of the world is suffering the uncertainty surrounding the European debt crisis. The US financial system has guaranteed a lot of Greek debt, and would be on the hook for billions if a formal default were declared.

China is obviously having its own problems with a slowing growth rate. And Japan is still dealing with the after effects of the earthquake, tsunami, and nuclear meltdown.

Like last month, world markets have been roiled and volatile with shifts between risk-on and risk-off speculations alternating almost on a daily basis.

One way to avoid some of the rollercoaster effects of this uncertainty is to invest some assets in both the risk-on and risk-off markets.

This month’s international winners were distributed throughout the globe. The best performer was the Aberdeen Chile Fund (CH), which was up 13.45%.

Two Turkey funds made the top performers list. The iShares MSCI Turkey Index Fund (TUR) was up 11.48% and the Turkish Investment Fund (TKF) was up 10.07%.

Vietnam and Peru also made the list, with gains of 7.13% and 6.86% respectively.