Hello record gains
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.