Global markets open opportunities for ETFs

14 April 2011
| By Ashleigh McIntyre |

Exchange-traded fund (ETF) managers are seeing favourable conditions for global equities, with cheap companies and a strong dollar making for good value.

BlackRock global investment specialist James Holt said the areas of global healthcare, consumer staples and IT companies are offering value for global investors at present.

"China is entering its next stage of development and becoming a more consumer-based economy. As a result, demand for middle-income consumer goods is on the increase," Holt said.

Hold said leading IT brands, which were expensive a decade ago, are now trading at very cheap levels.

As well as IT, healthcare companies are also cheap at the moment, and will only benefit from an ageing population, Hold said.

Meanwhile the global consumer staples sector offers diversification opportunities for Australian investors, as the sector is 30 times larger than Australia's domestic consumer staples sector.

Director of intermediary sales for iShares, Tom Keenan, said that ETFs were one of the most effective ways investors could access international markets, due to their high liquidity, low cost and ability to react to changing market conditions quickly and simply.

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