Why Buy BIK?

T.P., Woodside, CA Asks: Your Moneyletter Plus issue today says “Sell all of iShares MSCI EAFE Index (EFA). With the proceeds purchase SPDR S&P BRIC 40 (BIK).” But your ratings give BIK a “Hold” rating. Why this trade?

MONEYLETTER Publisher Brian Kelly Responds: EFA dropped to #119 in our International List last week and is now rated Sell.

So, what to replace it with? Our top rated ETF, which was ESR (Eastern Europe) we felt had overlap with our existing DFE (Europe) position.

Next was GUR, also Europe, which is not eligible for Moderate investors (the basis for our ETF portfolio) due to risk profile.

Next choice was BIK.

Although BIK has not reached “Buy” status based on our fund selection system rules, it is the highest rated ETF after the above exceptions.