iQ International Income Model
INVESTMENT OBJECTIVE
The iQ International Income Model seeks to provide current monthly income with capital appreciation as a secondary objective.
PROCESS:
Begin with every domestically-traded closed-end and exchange-traded global income and international income fund.
Rank by trading volume and keep the top 10.
Rank the remaining 10 companies by 12-month progressive relative strength and select the top 5.
Rebalance every 3 months.
Benefits of international bonds
Investing in international bonds can provide several benefits to an investor's portfolio, such as:
1. Diversification: By investing in international bonds, an investor can diversify their portfolio and reduce their exposure to risks associated with a single country or currency. This can help spread out investment risk and reduce the overall volatility of the portfolio.
2. Yield Enhancement: Investing in international bonds can also provide an opportunity for yield enhancement. Different countries have different interest rates and economic conditions, so investing in international bonds can provide access to higher yields than those available in the investor's home country.
3. Currency Diversification: International bond investing can also provide currency diversification, which can be especially valuable in times of currency volatility. By investing in bonds denominated in different currencies, an investor can mitigate the risks associated with fluctuations in their home currency.
4. Access to New Markets: International bond investing can also provide access to new markets and investment opportunities that may not be available in the investor's home country. This can allow investors to take advantage of growth opportunities and potentially generate higher returns.
5. Hedge Against Inflation: Finally, international bonds can provide a hedge against inflation. Inflation rates can vary significantly across different countries, and investing in international bonds denominated in currencies that have a lower inflation rate than the investor's home currency can provide protection against inflation risks.
Overall, investing in international bonds can be a valuable addition to an investor's portfolio, providing diversification, yield enhancement, currency diversification, access to new markets, and a hedge against inflation.
International bond ETF strategies involve investing in exchange-traded funds (ETFs) that track bond markets, aiming to provide exposure to fixed-income securities. While these strategies seek to generate income and preserve capital, they come with inherent risks, and the performance can be influenced by interest rate fluctuations, credit risks, and market conditions.