With international bonds you also have an added twist: Currency values. You're starting with dollars, and eventually you'll need to withdraw dollars, too. Therefore, if you buy bonds denominated in a foreign currency and that currency appreciates against the dollar, your return will be higher. But any losses can be aggravated if the dollar gains on your chosen currency while you are in it.

As a lender, you have to find a balance between lower risk, lower return assets and riskier assets with potentially higher returns. The exact answer depends on your particular goals.

If international bonds look like a good fit for you, then ETFs are an excellent way to participate! You get a quick, inexpensive portfolio with one easy trade. Here are a few of the ETFs in this category you may want to consider:

Eoin Treacy's view This is an informative article by Ron Rowland at Money & Markets which may be of interest to subscribers. Here is a section:

With international bonds you also have an added twist: Currency values. You're starting with dollars, and eventually you'll need to withdraw dollars, too. Therefore, if you buy bonds denominated in a foreign currency and that currency appreciates against the dollar, your return will be higher. But any losses can be aggravated if the dollar gains on your chosen currency while you are in it.

As a lender, you have to find a balance between lower risk, lower return assets and riskier assets with potentially higher returns. The exact answer depends on your particular goals.

If international bonds look like a good fit for you, then ETFs are an excellent way to participate! You get a quick, inexpensive portfolio with one easy trade. Here are a few of the ETFs in this category you may want to consider:

My view - Over the summer investors piled into Treasuries, JGBs, Gilts and Bunds on the dubious assumption that they offered some form of safe haven from the presumed inevitability of deflation and threat of a sovereign default in the Eurozone. However, the demand for sovereign securities was not limited to the debt of highly indebted countries and significant rallies have also occurred in better capitalised, less leveraged emerging markets as well as in inflation-linked bonds. Taking an objective approach to which country is most likely to pay back their debt in a relatively sound currency, I suspect the latter group offer better long-term value than the former. All of the funds mentioned in this piece can be found in the Chart Library.

The iShares JP Morgan USD Emerging Markets Bond (EMB) Fund remains in a relatively consistent uptrend and is currently consolidating in the region of 110. A sustained move back below the 200-day MA would be required to question the consistency of the medium-term advance.

The Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) and the WisdomTree Emerging Markets Local Debt Fund (ELD) don't have much back history but downward dynamics would be required to check their current advances.

The SPDR Barclays International Treasury Bond (BWX) which has a large weighting of JGBs, so is high risk in my view, has nonetheless just broken upwards from a six-week range and a downward dynamic would be required to check scope for further upside.

SPDR DB International Government Inflation-Protected Bond ETF (WIP) broke upwards this week to extend the four-month uptrend and a sustained move below $55 would be required to question the consistency of the advance.

The PowerShares International Corporate Bond Portfolio (PICB) and the SPDR Barclays Capital International Corporate Bond ETF (IBND) have only been in existence for a few months but are both testing the upper side of two-month ranges and downward dynamics would be needed to hinder potential for successful upward breaks.