A While back, we were considering a few Asian ETFs:
If you take a look at a comparison of each to SPY, you will see that both are more or less flat overall.
Now if you compare them to each other, it appears that EWY (in blue) is more slightly more volatile.
If you examine the Beta (as calculated by Yahoo Finance) EWY has a Beta of 1.07, whereas EWT has a Beta of 0.77. This confirms what we gleaned from the chart. While this may seem obvious, it is somewhat satisfying to be able to look at the graph and construct meaning out of it. Our English and Math teachers would be so proud.
Their volumes are similar as are their sector makeup. We lean toward EWT, based on its lower volatility. Also, according to Yahoo finance the yield is higher with EWT (1.9) than EWY (1.5), which is another point in its favor.
This investment would meet our goal for greater global diversity in our portfolio, however we have to make sure to not just diversify for its own sake.Or according to Random Roger:
To repeat from past posts, the objective is an equity portfolio that is hedged with diversifiers as I perceive are needed. I do not want a portfolio of diversifiers hedged with a little bit of equity exposure.
Profit!
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