Nobody downloaded yet

Country-Specific ETFs: An Efficient Approach to Global Asset Allocation - Essay Example

Comments (0) Cite this document
index-tracking funds with the tradability of listed shares, at the same time overcoming the main drawbacks of these two investment options for investors. Unlike trading in other open or closed-end country funds trading in country specific ETFs offers investors four additional benefits…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.5% of users find it useful
Country-Specific ETFs: An Efficient Approach to Global Asset Allocation
Read TextPreview

Extract of sample "Country-Specific ETFs: An Efficient Approach to Global Asset Allocation"

Download file to see previous pages They can therefore be continuously sold short at any time during the trading day enabling liquidation or assumption of short positions at will, needed generally in down markets.Continuos trading and short selling lead to efficiency gains in trading in ETFs when compared to trading in open or closed-end country funds.ETF country specific funds are tax efficient. They are created in kind and redeemed in kind. ETFs shares are bought by market participants by depositing with the fund the index constituents. They are redeemed by investors getting underlying high unrealized capital gain stocks with the fund retaining low unrealized gain stocks. Thus ETF reduces capital gains tax liability as it would not be called upon to sell high capital gain stocks and incur capital gains tax. Open or closed end funds, on the contrary, redeem in cash and may have to sell high capital gains stocks in order to meet rushed redemption requirements and may end up paying capital gains tax on realized capital gains. ETF investors can exchange their ETF shares and receive in kind the underlying shares, or even sell their ETF shares on the stock exchange without getting into selling the underlying shares. This circumvents capital gains tax liability for all investors. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Country-Specific ETFs: An Efficient Approach to Global Asset Essay”, n.d.)
Country-Specific ETFs: An Efficient Approach to Global Asset Essay. Retrieved from
(Country-Specific ETFs: An Efficient Approach to Global Asset Essay)
Country-Specific ETFs: An Efficient Approach to Global Asset Essay.
“Country-Specific ETFs: An Efficient Approach to Global Asset Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Country-Specific ETFs: An Efficient Approach to Global Asset Allocation

Risk Management and asset allocation

.... Why has private equity investment become so popular? 3. What is the most favorable private equity share in a general asset allocation? 4. To what extent does private equity expose investors? 5. How can a private equity exposure be derived? 6. What are the risks in overrunning a specific allocation and how can it be reduced? 7. Which model can be used to appraise the future of asset allocated in private equity? 1.4 Objectives 1.4.1 Main Objective To find the relationship between private equity, their exposure management practice and the degree of success in investing in private equity as an option for asset...
3 Pages(750 words)Research Proposal

The Importance of Proper Asset Allocation

...implementation of one period mathematical model the researchers have found out that optimal assets allocation have higher extent of influence from different factors like risk aversion of the investor, age, probabilistic estimation of survival and expected return and risk tradeoffs of several investment instruments. They also have found that global acceptance of weightage of risk free asset and risky asset in a portfolio is mainly influenced by the risk acceptance or risk tolerance potential of different investors. Therefore, traditional approach of subjective probability of individual’s survival is not only the affecting factor of...
5 Pages(1250 words)Admission/Application Essay

Portfolio management: asset allocation

...mentioned assets have been made and revised over the last 5 years of the fund, it would be difficult to arrive at a purchasing cost or the loss that the fund would have made in the recent past. The economy has hit a huge slowdown in the last one and a half to two years, leaving the country and the global economy is a state of turmoil. It should also be highlighted that the recommendations made in this note are under the assumption that exiting the existing asset classes would not lead to huge losses to the fund's overall performance over the years. In times like these, with the global economy in turmoil and markets highly volatile, it would be advisable...
6 Pages(1500 words)Essay

The Tactical and Strategic Asset Allocation of Pension Funds

...will be there even in the most efficient markets though, the tactical asset allocation sometimes is based on the assumption that the market overreact to the available information. This approach of asset allocation considers that the individual's risk tolerance is unaffected by changes in his circumstances. Here, the expected return on the stock is based upon the relationship between the present value of the stock market and the intrinsic value of the stock. It is also possible that the expected return tend to fail when prices rise and value changes by a little difference. In fact, the changes in the asset expected...
6 Pages(1500 words)Essay

The economy of a specific developing country

...). However, despite the promising advantages of devolution, Kenyan government has been experiences challenges of devolution especially because of the limited national resources that have to be shared between the national government and the numerous counties in the nation. Considering the historical colonization of Kenya by British government, the country benefited in several ways. To start with, the colonial government initiated a railway project that was used to open the landlocked interior, mostly the agricultural highlands, to the outside world. The railway, which was constructed after the world war II is still in use up to date with minimal modifications. The railway line also links the Kenyan coast,...
3 Pages(750 words)Essay

Asset allocation

... Asset Allocation (a) Bond type chosen The total bond market, Barclay Aggregate index is the bond chosen. Since the client is a household, the sub set is the High yield corporate bond. At an age of 39 years, the optimal portfolio should be in ratio of 61% stock and 39% fixed income securities. The percentage of income invested in the bond is 5% of the current salary which is the lowest and the return on the investment higher relative to other bonds in the market. The BofA Merrill Lynch US High Yield Master II Total Return Index Value© produces the best return so far in the market. High Yield Corporate BofA Merrill Lynch US High Yield Master II Total Return Index Value© Current Salary... the second highest standard deviation after the US...
2 Pages(500 words)Assignment

The economy of a specific developing country

...and Lardy 31). The Type of Government that China has and whether it has helped or hindered Development China is a communist country, with a communist government. The Chinese Government has acquired strong capabilities of macroeconomic control. The market economy in China is a kind of government led market economy, and the government has strong control of the macroeconomics (Yu 32). The Chinese Government has helped the Chinese people, like the public sector in dealing with the difficulty of globalization. Nevertheless, the Government has also hindered the Chinese people; this is because of the inadequate continuity of government policies and the fact that government policies keep...
3 Pages(750 words)Essay

Global Strategic Resource Allocation

.... Global Health Policies and Initiatives Specific to the UK for the Global Health Topic It is quite evident that the nations throughout the globe belonging to this modern day context are making deliberate steps towards providing quality as well as effective care to the patients in order to develop their respective healthcare segment at large. The United States is pursuing to serve the healthcare sector through the introduction of Global Health Initiative (GHI). GHI seeks to make changes in the healthcare system and makes sure to provide efficient and effective public healthcare programs. Through GHI, the Obama administration intended to improve the life...
6 Pages(1500 words)Essay

Assess Asset allocation decision and security selection strategies

...Assess Asset Allocation Decision and Security Selection Strategies February 5, Assess Asset Allocation Decision and Security Selection Strategies Question 1 i. The expected market risk premium= expected market return – risk free rate =12% - 4% = 8% 8% represents the amount of compensation that the investor will ask for the additional risk and also represent the slope of the security market line (SML). ii. The percentage of allocation of stocks and the risk free rate will be given by; The expected return for the stocks = 4% + (12% - 4%)*4... is ideal since the level of interest rate risk is...
3 Pages(750 words)Assignment

Portfolio Asset Allocation on LEE Pension Fund the uncertainty surrounding mixed-asset portfolio. This was our primary concern as far as this paper is concerned. Methodology So as to protect the portfolios from any short-term or long-term fluctuation in the market, the pension systems spread assets across a wide range of asset classes. This allowed each portfolio to uphold stability through the turbulent market cycles. Every systems asset was invested in bonds, stocks, real estate, and global asset allocation strategies, with a small asset allocation to associate partnerships. The assets incorporated in the...
8 Pages(2000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Country-Specific ETFs: An Efficient Approach to Global Asset Allocation for FREE!

Contact Us