MSCI EAFE Value Index Friday, September 12, 2008
Posted by ei-forum in ETFs.trackback
Has anyone noticed that the MSCI EAFE Value Index (EFV) is trading at 2005 levels and is currently yielding over 6%? Obviously the suffering has been compunded by the fact that over 40% of the holdings are in the financial sector but this could be an interesting way to play the recovery, without the risk of investing in a company that will have to file for Chapter 11.
Yahoo! ETF Summary: The investment seeks investment results that correspond generally, before fees and expenses, to the price and yield performance of the MSCI EAFE Value index. The fund invests at least 90% of assets in the securities of its underlying index or in ADRs, GDRs or EDRs representing securities in the underlying index. It may invest the remainder of assets in securities not included in the index but which the fund’s manager believes may help the fund track the index. The fund may also invest other assets in futures, options and swaps related to the index, as well as cash and cash equivalents. It is nondiversified.
We still feel that this ETF has more downside but investors could start to build up their position…
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Yes the volatility of the market is still an issue that weighs heavily on everyone’s minds.
But the volatility of the market is still an issue.
Indeed but if you are a long-term investor this could be a good time to step in and open up a position: say 30% and then add another 30% if it moves 10% up or down… and see when to enter with the remaining 40% of a full position.
Yes, as a long term investor you can apply a limited capital investment, but I’m not sure we’ve seen the bottom yet.