Investor Taking Profits In Emerging Markets ETF (VWO, TIP, CSJ)

take-profitsEmerging Markets have enjoyed some strong gains since the March lows, and one investor is starting to take some of the gains off the table. reports that “Mike Bayer The Toronto, Canada-based adviser and president of Strategic Analysis Capital Management says he prefers to buy exchange-traded funds and mutual funds from Dimensional Fund Advisors when they’re out-of-favor.”

IndexUniverse continues to report “The problem most investors have is that they tend to trade too frequently and make changes in the wrong direction. They’re buying high and selling low,” said Bayer, who works with individual and institutional clients in Canada and the United States. Since early March, SACM has been taking advantage of the rally in stocks to rebalance client portfolios. Bayer has been trimming positions in the Vanguard Emerging Markets Stock ETF (NYSE: VWO).”

“Emerging markets have had a big run-up in the past few months,” Bayer said. “I’ve been carefully monitoring portfolios to make sure they stay within our asset allocation limits. In cases where VWO has exceeded those bands, we’ve sold positions and redeployed proceeds into mainly bond funds.” Reports IndexUniverse

IndexUniverse reports that Bayer said “The proceeds from selling VWO have been mainly going into buying more fixed-income ETFs and funds, says Bayer. Those include the iShares Barclays TIPS Bond ETF ( NYSE: TIP) and the iShares Barclays1-3 Year Credit Bond ETF (NYSE: CSJ). The firm has also been adding to positions in the DFA Five-Year Global Fixed-Income Fund (DFGBX).”  

Full Story: Here


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