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Global / International  Exchange Traded Funds

InvestorsFriend's one-stop Global / International ETF reference Site provides:

  1. Selected International Exchange Traded Funds (ETFs) and trading symbols
  2. Fundamental data for each selected International ETF (P/E ratio and dividend yield)
  3. Links to updated P/E ratio, dividend and other info for each International ETF 
  4. Links to Yahoo Finance for International ETF for an updated price and news items
  5. Two U.S. corporate Bond Exchange Traded Funds are included
  6. The Management Expense Ratio (MER) of each selected International ETF.

This article provides a list of selected Global / International Exchange Traded Funds (ETFs). It also provides the available fundaments (P/E ratio and dividend yield, and price to book value ratio) and the Management Expense Ratio (MER) of each ETF. The intention is to provide a broad list of ETFs covering major countries.  This list is not intended to cover various industry segments but rather to cover counties.

We provide the latest available P/E and dividend yields as of January 3, 2010. And we also provide links so that you can check the latest P/E, dividend yield and Canadian ETF prices. Therefore this Global / International Exchange Traded Fund (ETF) reference article can be used at any date, not just near the date it was last updated.

See also our analysis of Canadian ETFs and Market segments.

Further Information on interpreting our ETF table is provided below.

The Following ETFs Trade in the U.S. Most of these subject investors to currency risk between their country and the currency in the country of the index. Canadian investors should note that some of the distributions will be withheld as U.S. tax.

Be aware that the net asset value of the underlying entities can differ from the price of the ETF. This can be checked under the links to ishares.com in the first column below.

We have very little to no knowledge of the economic outlook in these various countries or areas or the political or the currency risks. Any comments here are simply based on the P/E ratio, yield and price to book ratio.

Note that Yahoo seems to consistently report lower trailing P/E ratios than ishares. We don't know why that is. Both appear to use some form of adjusted earnings (omitting unusual gains and losses). To be conservative it is best to assume the higher (less attractive) P/E is more correct. In fact both may be too low.

 

Country Index

Click the links for ishares.com info.

 Trailing P/E

( appears to use normalized earnings)

 Dividend Yield % Price to Book ratio (from ishares.com)  ETF  Comment
 Europe, Australia and Far East EFF

 

 

 

 

ishares 23.7

Yahoo says 14.8

 

 

Yahoo says 2.69%

Globe investor says 3.2%

 2.67

 

 

 

 

 EFA  $55.28 (MER 0.35%)

Canadians can buy XIN  $17.91 on Toronto, hedged in Canadian dollars (MER  0.49%)

 Gives broad exposure to Europe, Australia and the Far East.

Appears unattractive

 

 

 

 U.S. S&P 500 ETF

 

 

 

 

 

 

 

 

 

ishares 23.1

Yahoo 16.6

S&P GAPP 23.5

S&P Operating 20.2

 

 

 

 

 

 

 

 

 

Yahoo 2.0%

S&P 2.1%

 

 

 

 

 

 

 

 

 

3.5

 

 

 

 

 

 

 

 

 

 

 

IVV    $111.88 (MER 0.09%)

 

Canadians can buy XSP $12.88 on Toronto, hedged in Canadian dollars (MER  0.24%)  May have different yield.

 

 2 times bull (MER 0.95%)
SSO     $38.24

2 times bear (MER 0.91%)
SDS   $35.05

1 times bear (MER 0.95%)
SH      $52.56

 500 of the largest U.S. companies. GAAP Earnings are abnormally low at this time which makes interpreting the P/E very difficult. ishares and Yahoo use some kind of adjusted earnings

Appears to be unattractive

 

 

 

 Double leverage funds cannot be expected to perform at double the underlying index except over a single day.

Double leverage funds lose money in if the market bumps up and down with no trend.

 Dow Jones Industrial Average Dow 16.6  Dow 2.64% 2.78  DIA   $104.07 (MER 0.18%)  Appears to be neutral in attractiveness
 Global 100 ETF ishares 22.4

Yahoo 14.2

Yahoo 3.1%

 3.1  IOO  $60.25 (MER 0.40%)  Appears unattractive
 Europe 350 ETF ishares 22.5

Yahoo 14.2

Yahoo 2.77%

 2.97 IEV $38.96 (MER 0.60%)  Appears unattractive.
 China 25 Index ETF ishares 24.8

Yahoo 16.4

Yahoo 1.23%

3.06 FXI   $42.26 (MER 0.74%)  With only 25 companies it is dominated by a few companies and therefore is more volatile.

Seems unattractive although may be reasonable if high China growth is considered.

 Japan ETF ishares 28.3

Yahoo 16.4

 

Yahoo 1.29%

1.34 EWJ   $9.97 (MER 0.54%)  Appears unattractive
 United Kingdom ETF ishares 25.2

Yahoo 13.0

Yahoo 3.54%

 3.31  EWU $16.20 (MER 0.54%) Appears unattractive
 Australia ETF ishares 23.1

Yahoo 17.4

Yahoo 4.01% 3.14  EWA   $22.84 (MER 0.51%)  Appears unattractive
 Hong Kong ETF ishares 25.8

Yahoo 18.0

Yahoo 3.44%

3.67  EWH   $15.66 (MER 0.52%)  Appears unattractive
 Brazil ETF ishares 25.3

Yahoo 17.0

Yahoo 2.61%

 3.74  EWZ   $74.61 (MER 0.68%) Appears unattractive
 BRIC Countries ETF ishares 22.23

Yahoo 17.7

Yahoo 1.21%

 3.81  BKF   $45.85 (MER 0.75%)  Appears unattractive
 Italy ETF ishares 19.2

Yahoo 12.8

Yahoo 3.28%

1.42  EWI   $19.51 (MER 0.54%)  Appears unattractive
South Korea ETF ishares 18.2

Yahoo 12.3

Yahoo 0.88%

1.97  EWY   $47.64 (MER 0.68%) Appears unattractive
 20+ Year U.S. Treasury 4.59% yield to maturity  TLT    $89.89  No Credit risk. (Very) long term investors could hold for the coupon although in that case you should directly buy a treasury bond, not the fund.

This ETF can be used to speculate on U.S. interest rates. It will fall in price if long-term interest rates rise and rise in price if interest rates fall.

 Ultra-short 7-10-year Treasury  PST    $53.94

HTD (Toronto) $15.50

Use this to speculate that U.S. long-term interest rates will rise.

 Canadian Investors may prefer this one which trades on Toronto and is bought as a bet that U.S. long-term interest rates will rise. The currency risk is hedged away.

 

 U.S. Investment-Grade corporate Bond fund ETF Distribution Yield 5.34%

Yield to maturity 4.99%

LQD    $104.15 (MER 0.15%) Appears unattractive

The weighted average maturity is just over 12 years. This fund will fall in price if long-term interest rates rise. Also it exposes investors to credit risk but is rated investment grade at BBB+.

 U.S. high yield corporate bond fund ETF Distribution Yield 8.75%

Yield to maturity 8.72% (assumes no defaults)

HYG   $87.84 (MER 0.50%) Appears unattractive given interest rate and credit risk

The weighted average maturity is about 5.5 years. This fund will fall in price if mid-term interest rates rise. Also it exposes investors to considerable credit risk. S&P rates this higher risk at only B- (well below investment grade, this is speculative) The indicated yield will not likely be realized due to credit risks.

The above table is an excellent reference particularly for Canadian investors interesting in gaining global stock and bond exposure through ETFs. You can bookmark this page or join our free newsletter list to be notified of updates.

For many more international Exchange Traded Funds see www.ishares.com and www.proshares.com

With this P/E ratio and yield information, investors can make a better judgment as to the desirability of various Country ETFs and we also provide the trading symbol under which each can be purchased. (Or sold short for that matter).

While it can be very difficult to interpret whether a particular P/E ratio is attractive or not, it is useful to be aware of these ratios.   In some cases the P/E ratios may not be the raw trailing P/Es but may be massaged to remove extraordinary items. ishares has told us they "massage" the P/E for the S&P 500 index and they may do that for all of them.

Keep in mind that P/E ratios and yields are based on the earnings and dividend information available at a point in time. Ratios are always subject to change as financial results change and as the ETF prices change.

Dividend yields for these International ETFs may not be reliable in some cases. The reason is that the distributions from ETF funds can be somewhat lumpy as to both timing and amounts and these distributions may not track the dividends of the underlying companies very closely at all.

If you click through to see the latest P/E and yields for these international ETFs note that many of them are not updated daily but are based on a previous month end. In that case the reported ratios need to be adjusted to reflect the latest ETF price. Click on the price of the ETF to go to Yahoo and see the latest price, you can then click on historical prices on Yahoo to see the price on the month-end that the P/E was last updated. Then, for example, if the international ETF price is up 10% then the P/E would be up 10% and the yield down 10%.

In buying or selling any of these International ETFs be cautious about the trading volume and the bid/ask spread. Higher volume ETFs are preferred, all else being equal.

In buying any of these, be careful to double check the trading symbol with other sources. I believe the symbols below are correct, but please double check. A wrong symbol could lead to to the wrong investment.

Investors may wish to consider the expected growth or contraction of the earnings that are driving the P/E for a particular segment. High growth can justify a high P/E and low or negative growth leads to lower P/E ratios. More recently, a global financial crisis has first pushed P/E ratios down, and then pushed them up as earnings evaporated and as the markets recovered.

Note that the charts of Global ETFs that trade in the U. S. are in effect distorted by currency movements. The graph does not show just the movement of the country index, but rather the country index in U.S. dollars.

END

Shawn Allen, CFA, CMA, MBA, P.Eng.

President, InvestorsFriend Inc.

January 3, 2010

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