International Bond ETFs Offer Diversification

As developing nations continue to prosper and grow and investment dollars fund their way overseas, international bond exchange traded funds (ETFs) may be the answer to portfolio diversification and risk minimization.

As ETFs continue to grow in popularity, they can offer investors exposure to international debt with relative ease.   The reasons behind gaining exposure to international debt include spreading out the sensitivity of U.S. interest rate movements and playing currencies exchange movements. 

It is equally important to consider the risks involved in dealing with these international bond ETFs and use an exit strategy which can help mitigate these risks, such as the one found at www.SmartStops.net.

A few international bonds to consider are:

  • iShares S&P/Citi Intl Treasury Bond (IGOV), which carries an expense ratio of 0.35% .  IGOV holds 44 different bonds with an average duration of 5.8 years and gives bond exposure to markets like Japan, the United Kingdom, France and Germany.
  • iShares S&P/Citi 1-3 Yr Intl Treasury Bd (ISHG), which carries an expense ratio of0.35 %.  ISHG holds 26 bonds with an average duration of 1.67 years and gives exposure to markets like Japan, Belgium, Spain and Finland.
  • SPDR Barclays Capital Intl Treasury Bond (BWX), which carries an expense ratio of 0.35%.  BWX holds 82 different international bonds, is primarily focused on Japan, Germany and Italy and has an average duration of 6.1 years. 

Disclsoure: No Positions

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About SmartStops

We are a new service launched to the market in July of 2008. Our mission - to help ensure stock and etf investors stay protected in their positions at all times. see www.smartstops.net

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