Michael Bowman FT AlphaDEX European Div. ETF EUR-T WAIT Mar 05, 2014

Rules based ETF and a good way to play the EU market. Dividend oriented. CAD$.

He is a bit light on the European story and would like to include a European ETF in his portfolio. He would also like to own Europe with UK. The only issue is that some of the policy tools that they have been using in Europe are starting to not have the same impact, so there has been some talk of new stimulus in the European community. This is definitely a good time to be stepping in, but average in if you can.

Likes Europe. It’s a space that in Q4 last year the GDP actually moved positive and he sees it moving up. Canadian dollar hedged, which he would prefer not to have. Prefers FEZ-N.

US is trading 17 times earnings, Europe is not even close to being that expensive. Still thinks the Euro has a risk of breaking apart. It could be 5 years or more before Europe blows up. Having more Europe than US for the next few years could be good, but he is worried about the Euro value so you might want something currency hedged.

Likes this. This is a Rules-based ETF rather than an Indexed based ETF. Once they have done their filters, they lop off the bottom 25%. The idea is to concentrate the portfolio in areas that they want. A good way to play this. His concern is what tribal dances Mr. Putin is doing so he has been very cautious in terms of going in. The same with Vanguard European (VGK-T). This one is unhedged. (See Top Picks.)

Likes European equities. You get mid-teen earnings growth over the next couple of years. If you are trying to invest in a European recovery, global businesses comprise most of that ETF so you are not really investing in Europe.

(A Top Pick March 20/14. Up 16.24%.) They call this AlphaDex, which means manager input plus indexing. Fairly expensive relative to other ETF’s because of their approach to things. This was almost a Top Pick for tonight.