Hello record gains

Finweek English Edition - - INVESTMENT - TANDISIZWE MAHLUTSHANA

LAST WEEK US Fed­eral Re­serve Chair, Ben Ber­nanke, buoyed US mar­kets to record highs with his an­nounce­ment that the Fed will not dis­con­tinue its $85bn/month bond pur­chas­ing pro­gramme, ef­fec­tively re­plac­ing fear with con­fi­dence.

While growth forecasts in the world’s big­gest econ­omy have been down­graded by the Fed, the re­newed con­fi­dence in that mar­ket should bode well go­ing for­ward.

The MSCI USA In­dex ETF*, man­aged by Deutsche As­set & Wealth Man­age­ment, gives

CLOVER lo­cal in­vestors ex­po­sure to the world’s big­gest com­pa­nies in­clud­ing Ap­ple, Google and Mi­crosoft. In the process, in­vestors will be hedg­ing against a weak lo­cal cur­rency.

Based on a lump-sum in­vest­ment with no rein­vest­ment of div­i­dends, this ETF achieved an an­nu­alised re­turn of 42.43% over one year. The fund has a To­tal Ex­pense Ra­tio (TER) of 1.09% and has min­i­mum track­ing er­ror.

* The writer holds shares in MSCI USA IN­DEX ETF.

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