Looking into [South] Korea and Taiwan, specifically EWY and EWT, respectively, and we noticed that both funds are a little too heavily invested in one company (or umbrella company). This reminds us of the Petrobras incident with EWZ, which we still haven't recovered from. At the same time, it also does the opposite. We did make a healthy profit with AT&T, and that was just one stock. The diversification mitigates both losses and gains. So maybe these are worth a gander.
Here are the main holdings and sector weightings for EWY:
As you can see, EWY has more holdings in Consumer Cyclical, which is something that we're trying to beef up in our portfolio. We're also low in Technology. There is less in Financials and Communication in both funds. The only thing that we're severely lacking in is Real Estate, but we all are pretty against really going in on that.
The next step is to look at where each of these funds is in their respective areas. For example, how do the largest holdings of each fund stack up against each other and their respective sectors? But that will have to wait for next time, kids.
Tune in when we fight the Riddler, and by that we mean look at more investments. Same profit channel, same profit time.
Profit!
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