Since bottoming at the end of October, the MSCI Emerging Market Index (MXEA) and MSCI Asia Ex-Japan ...
A Trio of Global ETFs
05/07/2015 10:00 am EST
Briton Ryle, editor of The Wealth Advisory, highlights a trio of recommended global ETFs, offering exposure to such diverse markets as Brazilian real estate, Mexican equities, and global gold miners.
Alpine Global Premier Property (AWP)
This fund gives us exposure to the US and Brazilian real estate markets. These two countries account for 49% of the fund’s $763 million in assets. It currently pays about 9% in monthly installments of $0.05.
The discount to NAV is 12.68%. That’s a relatively large discount for this fund, which suggests it’s cheap at current levels.
We rate the Alpine Global Premier Property Fund a strong buy at current levels. Our price target is $11.
Mexico Fund (MXF)
Mexico is the best emerging market for investment, in our opinion. Its proximity to the US puts it in a strong position. The US takes in 78% of Mexico’s exports.
GDP should grow 4% in 2014 (compared to 2.7% for Brazil, for instance), and public debt is just 35% of GDP. The current NAV for the Mexico Fund has risen to $22. The 52-week high NAV for the shares was $29.
The shares now trade at a 3% discount to NAV. The potential upside makes them attractive. This fund also pays a healthy 10% dividend.
GAMCO Global Gold & Natural Resource Fund (GGN)
The GAMCO Global Gold, Natural Resources & Income Trust is a closed-end gold fund run by Mario Gabelli’s funds company. It’s a leveraged fund, which means it trades derivatives to generate income, which it then distributes as a very nice dividend.
This fund’s holdings are a Who’s Who of gold miners. This fund now trades at a slight discount to its net asset value and the dividend is 12%.
This fund is the very epitome of beaten down and will be quite attractive if gold stocks ever get a bid. It won’t take a big move for gold prices to make the miners irresistibly cheap.
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