For investors, there are a variety of ways to play the foreign markets — either by buying companies based overseas or through multinationals that do business with growing economies, to name two.
But the route taken by many investors nowadays, as they look for foreign exposure while also getting dividend growth and diversification, is through the plethora of exchange-traded funds that do a pretty good job of tracking growth in their designated nations and combine the various strategies.
Baum, for instance, likes the iShares MSCI Pacific ex-Japan ETF . The fund sounds like a mouthful but simply tracks stocks in Australia, Hong Kong, New Zealand and Singapore — the Pacific, without including slow-growth Japan.
Importantly, the fund also pays a handsome dividend at 4.4 percent and carries a three-star Morningstar rating .
"You can get that side of the world, and while you're waiting for it to repair itself and get better at least you're getting paid 4 percent," Baum says. "It makes sense from an entire asset allocation standpoint for investors to have a piece of emerging and non-emerging countries."
Investors also can choose country-specific ETFs.Page 2 of 4 | Prev Page | Next Page