Monday 12 August 2013

Another Boring Buy...

More of this ahead...
Ho hum, another non-Sterling ETF purchase. This time its a top-up of my Euro dividend Exchange Traded Fund, the iShares EURO STOXX Select Dividend 30 (LSE:IDVY)

Sorry it is not any more exciting - but sometimes investment strategies work out like that, and you have to find your excitement elsewhere.

Although it may be a fairly boring security, it comes with a nice 6% distribution yield (in Euros). Of course, the actual yield in British Pounds (or another currency) will be different, depending on how the exchange rate evolves.

I'm actually quite surprised at how strong the Euro is at the moment (after having bought some for our holiday in Ireland, and then selling it back to our son for his trip to Spain). But on the basis that there is not a lot of talk about a Euro crisis at the moment, this may represent a sustainable recovery in confidence in the Euro.

IDVY is up 10% in total returns on the year-to-date (in Sterling), after a disappointing run over the previous couple of years.

Investors' Chronicle mentions IDVY in its recent Euro Income article, but gives a lot more floor space to the active Euro income funds (which may do better but definitely will cost the investors more).

We'll see. To recall, my reason for holding this and other foreign securities is as a hedge against a declining UK Sterling value worldwide. This may be a fairly pointless effort as inflation/devaluation looks like happening everywhere, with a couple of exceptions like Norway.

The portfolio still has some cash and is showing nice gains on a couple of securities, notable SGRO - so there may be some more boring buys coming soon.

I can hardly wait.

[Purchase price: £14.05]

I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.

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