Country-Specific ETFs

The WSJ’s Rob Wherry put together a nice summary of country-specific ETFs over the weekend. A quick synopsis:

Key Facts:

  • There is an ETF for almost every country in Europe, Asia and Latin America
  • New funds are emerging for Africa and the Middle East
  • There are at least 36 single-country ETFs with a total of $57 billion or 10% of all ETF assets

Advantages:

  • Capitalize on international trends
  • Potential to deliver outsized returns
  • Customize your own version of an international index

Watch-outs:

  • Liquidity can be an issue
  • Tend to be concentrated in a few large companies or industries
  • Potential lack of transparency and geopolitical risk

Read more at www.wsj.com

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