- IXUS is well positioned given its sector exposures, but it is a highly diversified fund and does not seem to offer an opportunity for alpha.
- Based on conservative assumptions, IXUS is probably fairly valued, and hence constructive earnings in the medium- to long-term will enable IXUS to continue to rally.
- However, should markets become risk averse, IXUS could easily give up some strength.
- I view IXUS as a relatively low-beta, diversified, global alternative to the U.S. equity market. It is a good diversifier from an FX perspective, but I don't see IXUS significantly out-performing except against slow-moving funds such as those exposed to Defensive stocks.
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IXUS Is Well Positioned But Probably Fairly Valued