Are there any good quality ETF's with a low correlation to the US market?

Question

I'm looking for some good ETF's that are relatively well insulated from a drop in value should the US markets sell off. What do you think? Possibly Japan or China ???

Answer 1

Exotic suggestion: the Vietnam Opportunity Fund. Vietnam was admitted into the World Trade Organization a couple of months ago. The VOF is the only publicly-traded Vietnam country fund.

VOF trades in US dollars in the London AIM under the symbol VOF. Volume is reasonably substantial, 100,000 to 250,000 shares/day.

Same fund also trades in the US, still in the pink sheets stage. Symbol VTOPF.PK. Again, volume is reasonably substantial, usually well above 100,000 sh/day.

Website for this fund: www.vinacapital.com.

Caution: fund is organized as a Cayman islands trust. There is no regulatory authority in the USA (pink sheets companies don't have to report). If the principals decide to disappear with the loot, there's no recourse. So you'd want to study the website carefully and also study Vietnam as an emerging economy. Many people are going there on holidays these days, many are buying condos and real estate. Same company has a Vietnam land opportunity fund that trades in London only.

Unit price of VTOPF.PK is marching rapidly and steadily north. For example, was around 2.40 in late October when WTO admission was announced, closed this past Friday at 4.15.

One day later:

It is an exchange-traded fund. The exchange happens to be London, England.

Answer 2

he said ETF NOT PINK SHEET!

As for the correct answer ADRE (curretnly own), EEM, EFA (both former owned) are three you should take a long close look at. I would NOT invest in a single country unless its a very very small amount (even then I still wont invest in a single country) another one you should seriously consider is a new international reit etf put out just a few weeks ago. $68 range but maybe.