Country-specific ETFs: An efficient approach to global asset allocation

Miffre, Joëlle
August 2007
Journal of Asset Management;Aug2007, Vol. 8 Issue 2, p112
Academic Journal
The paper shows that country-specific exchange traded funds (hereafter ETFs) enhance global asset allocation strategies. Because ETFs can be sold short even on a downtick, global strategies that diversify risk across country-specific ETFs generate efficiency gains that cannot be achieved by simply investing in a global index open or closed-end fund. Besides, the benefits of international diversification can be achieved with country-specific ETFs at a low cost, with a low tracking error and in a tax-efficient way. For all these reasons, country-specific ETFs may be considered as serious competitors to traditional country open and closed-end funds.Journal of Asset Management (2007) 8, 112–122. doi:10.1057/palgrave.jam.2250065


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