While U.S. markets have languished for the first quarter of 2007, there have been some profit opportunities in international positions. The tricky part about investing internationally is that all countries or regions are not equal. So an investor must carefully pick and choose positions.

For example, so far in 2007 some of the best performances have come from the Far East. Some of the top-performing exchange-traded funds (ETFs) year-to-date include Malaysia +20.85% (EWM) and Singapore +14.03% (EWS). South Korea is up 5.76% (EWY) and Hong Kong is up 3.64% (EWH). But China is down almost 4% and Taiwan is off nearly 2% (EWT).

The strongest overall region has probably been Europe with a number of country funds turning in nice three-months gains. They include: Netherlands +9.88% (EWN), Germany +9.70% (EWG), Austria +7.75% (EWO), Spain +7.29% (EWP), Sweden +7.11% (EWD), Belgium +6.35% (EWK).

Another country fund that has done well is Australia, up 12.57% (EWA).

Latin American and emerging markets funds have also been strong. Mexico is up 8.91% (EWW) and Brazil is up 8.57% (EWZ).

How does all this compare to the overall U.S. market? Check the chart below.

The gold line is Australia (EWA). The black line is iShares S&P Latin America 40 Index Fund (ILF), a fund we have commented on frequently over the past couple of years. Both are markedly ahead of the Nasdaq (QQQ) shown by the reddish brown line and ahead of the S&P 500 (SPX) shown by the blue line.

It is important for investors to keep in mind that international funds tend to be volatile. A glance at the above chart reveals that the two international funds are significantly more aggressive than the U.S. indices portrayed. As a result, they are not suitable for many investors–at least in large doses.

The stock markets are closed Friday in observance of the Easter Holiday. Have an enjoyable weekend.

F.S.