(PRWEB) March 16, 2005
Chartwell Partners, an investment advisor and leading ETF specialist, is bringing public an ETF Country Stock Market Ranking Service that it has been using the past two years to build its model portfolios. It will be made available to subscribers on a
bi-monthly basis via email and will include several pages of global commentary.
The service ranks 25 country stock markets and their corresponding iShares ETF into three categories: outperform, neutral and underperform relative to the MSCI Europe, Asia & Far East (EAFE) and Emerging Markets Indexes.
There are currently 21 country specific iShares: Australia, Austria, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, Italy, Japan, Malaysia, Mexico, Netherlands, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, and the United Kingdom. The ranker uses closed-end funds for Indonesia, Thailand and India, and the Russell 1000 iShare for the United States.
The criteria for categorizing the country ETFs includes relative valuations, capital flows, pace and direction of economic growth and other data, technical indicators, currency movements and political and policy considerations.
President Carlton Delfeld noted that Chartwell has been using this process since early 2003 in building their Global, International and Asian Opportunity model portfolios. The portfolios were up 41%, 45% and 43% in 2003 and 27%, 28% and 25% in 2005.
ÂWith the growth of country-specific iShares, investors now have an easy, simple and low cost way to globalize their portfolioÂ Delfeld stated in a recent interview. ÂThe ETF/iShares Country Ranker will help investors organize their portfolio as well as provide them with useful and timely information.Â
Many investors now use broad international indexes such as the MSCI Europe, Far East & Asia (EAFE) and the MSCI Emerging Market Index. According to Delfeld, the problem with this approach is that these broad indexes are market capitalization weighted so that investors get too high a concentration in some countries and not enough in others.
For example, if an investor buys the MSCI EAFE index fund, 50% of their money is going to Japan and the United Kingdom. If they purchase an MSCI Emerging Markets index fund, 50% of their money goes to South Korea, Taiwan, South Africa and China.
ÂWe prefer to have more flexibility and to choose what weighting, if any, each country in our portfolios deservesÂ mentioned Delfeld. Last year, Chartwell introduced the Chartwell MSCI EAFE Equal Weight Index which weighs each of the 21 countries in the index equally.
The target market for the ETF/iShares Country Ranker includes experienced individual investors, financial advisors and institutional investors. The annual fee for the service is $695 with a limited time offer of $495 for new subscribers.
Chartwell has aggressively rolled out a suite of creative products to help investors harness the power of iShares including the ChartwellAdvisor.com web-based ETF advisory platform, the Chartwell Advisor ETF/iShares Report and the ETF/iShares Starter Kit.
Delfeld, formerly with UBS and Northwestern Mutual, is a frequent speaker on global investment issues, was a consultant to the U.S. Treasury, and served on the Board of Directors of the Asian Development Bank. He is also the author of a new book, ÂThe New Global Investor: Using ETFs to Build a Smarter, Simpler and Safer Portfolio.Â