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Old 07-21-2005, 11:26 AM   #1
marotta
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Country Specific Investing Pays Dividends (2005-07-25)

Country Specific Investing Pays Dividends (2005-07-25)

by David John Marotta

The iShares MSCI EAFE fund (EFA) based on the International Index lost 1.92 percent during the first half of 2005. For larger accounts, we recommend a strategy designed to enhance the international index with a diversified collection of countries that on average should do better than this International index.

Read the complete column at http://www.emarotta.com/article.php?ID=137
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Old 07-21-2005, 11:31 AM   #2
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Quote:
Originally Posted by marotta
MSCI EAFE
Hey that's the benchmark I manage against.

Understand that EAFE stands for Europe, Australia & the Far East. It is an index that holds companies in all the developed markets of the world. Names of many of these comapnies will be familiar to most - Sony, BMW, Qantas Airlines, Barclays Bank, etc. This index will have a large cap bias.

As the referenced story mentions, currency will be a big determinant of performance. Over the past couple of years the US dollar has been weak making these returns look high. Laterly it has strengthened, thanks to the EU Constitution being voted down.

The biggest allocation of the EAFE are to the UK (25%) and Japan (20%)
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Last edited by Merlin : 07-21-2005 at 11:45 AM.
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Old 07-22-2005, 08:58 AM   #3
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In September, I'll have owned this stock for a year and have made about 15% since then so I can't complain. It's up marginally YTD.
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