Two ETFs for the new year
If 2005 was not the year of the hedge fund, it was definitely the year of the exchange traded fund. A couple of analysts have a foreign ETF pick for the new year, incidentally using very different methodologies.
Jim Lowell at Marketwatch.com uses a momentum-based process to pick his “Hot Hands ETF.” Lowell explains how his process picks a broad-based ETF for the next year. Surprisingly his pick for 2006 is the same as 2005, i.e. the iShares S&P Latin American 40 Fund (ILF).
Roger Nusbaum in TheStreet.com has a very different pick. He recommends the iShares MSCI Sweden Index Fund (EWD) to take advantage of potential capital inflows into the economy. While Nusbaum recognizes it is not a perfect vehicle, it does do the job for which it is recommended.
As always this should only be a starting point for your own research.
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