Gaining Global Exposure: International ETF Dividend Investing

One area that many portfolios are lacking is international exposure. Most people feel more comfortable buying the companies they are familiar with, which is understandable. However, we still need some exposure to international equities. I too need to bolster my position in non-U.S. equities.

In my Asset Allocation portfolio, I hold IShares MSCI EAFE Index Fund (EFA) as the international component. In my 401[k], there is an international fund that I am invested in. Certain other funds that I own have an international component. The remainder of my exposure comes from holding ADRs of international companies such as BP (BP).

Based on preliminary numbers, my allocation to international equities has increased about 1% from the end of Q1, but it is not where I would like it to be. To help accelerate the increase I plan on adding an international ETF to my Income ETF portfolio. I am in the preliminary stage of identifying candidates and here are the ones I have on the list to look at (yields as of 6/20/08):