Sunday, November 22, 2009

Harvard Endowment favors mix of International ETFs

International and Emerging Market ETFs are my favors ETFs in my investment portfolio. In my opinion, these markets will outperform the U.S. domestic markets in the years to come. These markets are already attracted by active institutions, investors and traders as it can be verified by its average daily trading volume.

Here is an interesting finding:

According to Yahoo's source (click here) from Tickerspy.com on Nov 19, 2009:

Though the market downturn was devastating for the Harvard endowment, 2009's extend rally has kept the more dire forecasts from being realized.

According to Bloomberg, the value of Harvard's investments fell by -27.3% in the year ended June 30, not as bad as the -30% decline that had been predicted and not as bad as the hits that other institutional investors took.
Though the endowment has substantial investments in alternative assets like real estate and private equity, investors can get a sense of Harvard's strategy by looking at its U.S.-listed, equity holdings. They turn out to be quite diversified, with an international bias that makes ample use of a variety of ETFs.
Looking at Harvard's top U.S.-listed holdings at the end of Q3, which were recently disclosed to the SEC, the largest U.S.-listed, equity holding by a wide margin was ETF iShares MSCI Emerging Markets Index (NYSE: EEM - News), where Harvard was adding its stake during the quarter.
Meanwhile, Harvard was upping its exposure to individual emerging and overseas markets via increased stakes in a variety of ETFs, including iShares FTSE/Xinhua China 25 Index (NYSE: FXI - News), iShares MSCI Brazil Index (NYSE: EWZ - News), iPath MSCI India Index ETN (NYSE: INP - News), iShares MSCI Taiwan Index (NYSE: EWT - News), iShares MSCI Malaysia Index (NYSE: EWM - News), and iShares MSCI South Africa Index (NYSE: EZA - News).

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