Since bottoming at the end of October, the MSCI Emerging Market Index (MXEA) and MSCI Asia Ex-Japan ...
Global Buys: For Growth and Income
12/10/2013 10:00 am EST
Mild selling, in Asian equities, permits us to add to our portfolios with several new Asia-based buys, explains fund expert Doug Fabian. In his Successful Investing, he highlights two foreign dividend plays.
WisdomTree Australia Dividend Fund (BATS:AUSE) seeks investment results that closely correspond to the price and yield performance, before fees and expenses, of the WisdomTree Australia Dividend Index.
That index is fundamentally weighted, and measures the performance of high-dividend yielding companies in Australia. The index is comprised of dividend paying companies, incorporated in Australia, with a minimum market capitalization of $1 billion.
The index also is made up of the ten largest qualifying companies from each sector, ranked by market capitalization. AUSE basically gives us the best-of-the-best stocks in Australia.
It also gives us additional exposure to Asia, as many of the companies in AUSE are suppliers of goods and capital to places such as China. We have added the fund to our growth portfolio.
Meanwhile, in our income portfolio, I am recommending Arrow Dow Jones Global Yield ETF (GYLD), which seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones Global Composite Yield Index.
This index seeks to identify the 150 highest yielding investable securities in the world within three asset classes—equity securities, fixed income securities, and alternative investments.
The diversity here in this fund is what makes it appealing, as it invests in common stocks, ADRs, preferred stocks, sovereign debt securities, corporate bonds, real estate investment trusts, energy master-limited partnerships, and other alternative income generators.
The combination of these global income-generating securities currently pays an attractive dividend yield of 6.65%. The diversification in GYLD also helps shield our income portfolio from declines in any one income-generating market segment.
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