High-quality foreign stocks are a great way to diversify your portfolio. Moreover, many emerging markets, like China and India, have strong growth prospects. That’s because their people are generally younger than North Americans, and more of them have the potential to advance into the middle class.

Even so, global stock market investing remains riskier than investing in North America. That’s because …read more »

On January 22, Wall Street Stock Forecaster, our newsletter that focuses on the U.S. stock markets, will unveil a stock with the right mix of strong fundamentals and technological know-how to earn big profits in 2010 and beyond. In fact, we think this company’s prospects are so bright we’ve named it Wall Street Stock Forecaster’s #1 stock pick for the …read more »

Exchange-traded funds (ETFs) offer investors more benefits than ever before, mainly because of increased competition. That can make them good choices for certain parts of your portfolio — such as the portion you devote to global stock market investing.

That’s because directly investing in foreign markets can be complicated and risky, and high-quality ETFs let you make global stock market investments …read more »

ISHARES S&P INDIA NIFTY 50 INDEX FUND $25.51 (Nasdaq symbol INDY; buy or sell through brokers), is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities on the National Stock Exchange of India.

The fund’s top holdings are: Reliance Industries (conglomerate), 13.0%; Infosys Technologies (software), 7.9%; ICICI Bank, 6.9%; Larsen …read more »

ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $51.79 (New York Exchange symbol ECH; buy or sell through brokers), is an ETF that aims to track the MSCI Chile Investable Market Index. This index consists of stocks that are mainly traded on the Santiago Stock Exchange.

The fund’s top holdings are Empresas Copec SA (conglomerate), 12.9%; Empresa Nacional de Electricidad (electric power), …read more »

ETFs have added to their advantages over closed-end funds over the last few years. That’s because ETFs have evolved, and competition has increased. Still, there are a lot of ETFs that have been created to tap into popular, but risky, themes and fads, so you need to be very selective with your ETF holdings. But the best ETFs offer a …read more »

ISHARES MSCI GERMANY FUND $22.95 (New York Exchange symbol EWG; buy or sell through brokers) is an ETF that aims to track the MSCI Germany Index. This index aims to capture 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly because of limitations on foreign ownership.

The fund’s top holdings are …read more »

ISHARES MSCI SOUTH KOREA INDEX FUND $46.06 (New York Exchange symbol EWY; buy or sell through brokers), is an ETF that aims to track the MSCI Korea Index. The index aims to capture 85% of the total market capitalization of the South Korean stock market. The other 15% is unavailable for investment, partly due to limitations on foreign ownership.

The fund’s …read more »

ISHARES MSCI EMERGING MARKETS INDEX FUND $41.85 (New York symbol EEM) is a good subsititute for TEMPLETON EMERGING MARKETS FUND $19.70 (New York symbol EMF). Switch.

ISHARES MSCI SOUTH KOREA INDEX FUND $46.06 (New York symbol EWY) is a good replacement for KOREA FUND $34.16 (New York symbol KF). Switch.

ISHARES MSCI GERMANY FUND $22.95 (New York Exchange symbol EWG) is a …read more »

ISHARES MSCI EMERGING MARKETS INDEX FUND $41.85 (New York Exchange symbol EEM; buy or sell through brokers), is an ETF that aims to track the MSCI Emerging Markets Index.

The fund’s geographic breakdown includes: Brazil, 14.8%; South Korea, 12.4%; China, 11.2%; Taiwan, 10.4%; South Africa, 8.1%: Hong Kong, 6.8%; Russia, 6.3%; India, 6.0%; Mexico, 4.6%; and Israel, 3.3%.

iShares MSCI Emerging Markets …read more »

The U.S. dollar is down 22% against the Canadian dollar so far this year. Many investors fear it will keep falling.

If you knew the U.S. dollar would keep falling, the best strategy would be to sell all of your U.S. stocks and buy them back when the dollar stabilizes. However, you don’t know where the U.S./Canada exchange rate is …read more »

EUROPEAN EQUITY FUND $6.72 (New York symbol EEA; CWA Fund Rating: Conservative) should gain from a continued economic recovery in Europe, particularly in Germany and France, the two countries where it has 50% of its investments. Germany grew 1.3% in the second quarter of 2009, and France grew 1.4%.

European Equity Fund mainly invests in large-capitalization European stocks in the 16 …read more »

During the 1990s, many investors held to a fixed idea that global stock market equities would be more profitable than North American stocks. This was especially true, so they claimed, of companies based in China, India and other emerging markets.

We advised our readers to resist investing heavily in emerging markets during those years. Instead, we recommended that investors look …read more »

UNITED CORPORATIONS $47.20 (Toronto symbol UNC) (165 University Avenue, 10th Floor, Toronto, Ontario M5H 3B8. 416-947-2583. Buy or sell through a broker) invests in a wide variety of average- to above-average quality Canadian and foreign stocks.

United Corporations holds 39.9% of its $752.4-million portfolio in Canadian equities, 21.1% in the U.S., 23.1% in Europe, 8.1% in Asia, 6.6% in the U.K., …read more »

NEW IRELAND FUND $6.98 (New York symbol IRL; Shares outstanding: 7.2 million; Market cap: $50.3 million; CWA Rating: Aggressive) invests in Irish companies. Bank of Ireland manages the fund.

Lower housing prices and a struggling banking sector have hurt the Irish economy. However, the country is open to foreign investment, and has invested heavily in education and training. It is also …read more »

INDIA FUND $26.02 (New York symbol IFN; Shares outstanding: 38.6 million; Market cap: $1.0 billion; CWA Rating: Aggressive) mainly invests in large-cap Indian stocks. Blackstone Group manages the fund.

India’s economy has grown by more than 9% annually over the last few years. The global recession has hurt the country’s growth, but it could still expand by as much as 6% …read more »

SINGAPORE FUND $11.65 (New York symbol SGF; Shares outstanding: 9.5 million; Market cap: $110.7 million; CWA Rating: Aggressive) is fully invested in Singapore-based stocks. The Development Bank of Singapore manages the fund.

Singapore relies on exports for much of its growth. Major markets, like the U.S., China and Japan, are important to its economy. As these markets recover, Singapore’s prospects should …read more »

Around the world, governments have increased spending in a bid to counter the recession. These efforts are now starting to show results. Global economic growth is resuming, and top-quality foreign stocks have rebounded.

Here are four closed-end funds that trade on the New York exchange at discounts to their net asset values. All four funds have risen lately, but we still …read more »

Around the world, governments have increased spending in a bid to counter the recession. These efforts are now starting to show results. Global economic growth is resuming, and top-quality foreign stocks have rebounded.

Here are four closed-end funds that trade on the New York exchange at discounts to their net asset values. All four funds have risen lately, but we still …read more »

Japan is heading into an election on August 30. Polls show the Democratic Party of Japan stands a good chance of defeating Prime Minister Taro Aso’s Liberal Democratic Party in the Japanese parliament’s lower house.
To spur economic activity, the Democratic Party of Japan plans to push for more aggressive stimulus spending, such as allowances for families with children, free …read more »

TEMPLETON EMERGING MARKETS FUND $17.44 (New York symbol EMF; CWA Fund Rating: Speculative) is a closed-end fund that invests in equities from emerging economies. Franklin Templeton manages the fund.

Templeton Emerging Market Fund’s holdings are spread around the world. Despite its volatility, the fund gives investors access to countries like Brazil, China, India and others that still have strong growth prospects.

The …read more »

NEW GERMANY FUND $9.91 (New York symbol GF; CWA Fund Rating: Speculative) is a closed-end fund that mostly invests in small- and mid-cap German equities. The fund’s manager is Deutsche Asset Management.

The $210-million fund’s holdings operate in Germany (91%) and the Netherlands (9%).

The New Germany Fund’s top holdings are European Aeronautical Defense (Netherlands: aerospace and defense), 5.9%; Bilfinger Berger (construction …read more »

KOREA FUND $31.74 (New York symbol KF; CWA Fund Rating: Speculative) is a closed-end fund that invests at least 80% of its assets in Korean equities. Currently, it is entirely invested in South Korean stocks. RCM Asia Pacific manages the fund.

Korea Fund’s top holdings are Samsung Electronics at 14.1%; Posco (steel), 5.7%; LG Electronics, 5.1%; LG Corp. (conglomerate), 4.8%; Hyundai …read more »

CENTRAL EUROPE AND RUSSIA FUND $27.69 (New York symbol CEE; CWA Fund Rating: Speculative) is a closed-end fund that mostly invests in larger cap stocks from Russia and central Europe. The fund’s manager is Deutsche Asset Management.

The $394-million fund’s holdings are invested in Russia (55%), Poland (13%), Turkey (13%), Czech Republic (11%), Hungary (4%), Austria (3%) and Kazakhstan (1%).

The fund’s …read more »

For years I’ve advised our readers to resist the temptation to invest in emerging markets. I felt you could get all the global diversification you need with a portfolio of 75% Canadian stocks and 25% U.S. stocks.

Of course, I advised sticking to our three-part philosophy: invest mainly in well-established companies, spread your money out across the five main sectors, and …read more »

Investing outside of Canada and the U.S. can expose you to more volatility and risk. The sharp downturn in many foreign markets during the global recession proves this. But there are still countries and regions that offer lots of growth potential and opportunities for diversification.

We still think that mutual funds, rather than individual stocks, are the best way for most …read more »

INDIA FUND $31.48 (New York symbol IFN; Shares outstanding: 38.6 million; Market cap: $1.2 billion; CWA Rating: Aggressive) has issued one right to shareholders for each share they own.

The subscription price per share will be equal to 95% of the fund’s net asset value per share when the offer expires on August 14, 2009. Shareholders will be able to buy …read more »

TIM HORTONS $28.93 (Toronto symbol THI; SI Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 181 million; Market cap: $5.2 billion) operates 3,457 coffee-and-donut shops, including 2,930 in Canada and 527 in the U.S., where the company is incorporated, despite the fact that the U.S. accounts for less than 10% of its revenue.

Tim Hortons was a wholly owned subsidiary of U.S.-based Wendy’s …read more »

CHILE FUND $15.63 (New York symbol CH) (CWA Rating: Aggressive) is a closed-end fund that invests primarily in Chilean stocks.

Prices for copper, a key commodity for Chile, are now at $2.31 U.S. a pound, down from the all-time highs of over $4 U.S. they reached in June, 2008. Chile is a major exporter of copper, particularly to Asia. In fact, …read more »

TOYOTA MOTOR CO. ADRs $76 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.6 billion; Market cap: $121.6 billion; Price-to-sales ratio: 0.6; WSSF Rating: Above Average) is the world’s largest carmaker. Japan accounts for 47% of its revenue, followed by North America (24%), Europe (12%) and Asia (10%).

In the fiscal year ended March 31, 2009, …read more »

HONDA MOTOR CO. ADRs $27 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $48.6 billion; Price-to-sales ratio: 0.5; WSSF Rating: Above average) is Japan’s second-largest carmaker. It’s also the world’s largest motorcycle producer.

Honda sold 3.5 million vehicles in fiscal 2009. That’s down 10.4% from 3.9 million in the prior year. However, …read more »

UNITED CORPORATIONS $46.50 (Toronto symbol UNC) (165 University Avenue, 10th Floor, Toronto, Ontario M5H 3B8. 416-947-2583. Buy or sell through a broker) invests in a wide variety of average- to above-average quality Canadian and foreign stocks.

United Corporations’ $676.1-million portfolio is invested 35.3% in Canadian equities, 23.7% in the U.S., 20.2% in Europe, 12.5% in Asia, 6.3% in the U.K. and …read more »

JAPAN EQUITY FUND $4.79 (New York symbol JEQ; CWA Rating: Aggressive) mostly invests in large-capitalization stocks on the Tokyo Stock Exchange. The fund’s top holdings include: Toyota Motor, Mitsubishi UFJ Financial Group, Honda Motor, Sony Corp., Sumitomo Corp. and Panasonic Corp.

Japan Equity Fund sells for 15% less than the value of its assets. It’s a buy.
…read more »

JAPAN SMALLER CAP FUND $6.95 (New York symbol JOF; CWA Rating: Aggressive) mainly invests in less-widely followed Japanese over-the-counter stocks. The fund’s top holdings are: The Chiba Bank, Hitachi High-Technologies Corp., Moshi Moshi Hotline, Inc., Daibiru Corp., Fuyo General Lease Co. and Taiyo Yuden Co.

The fund sells for a 13% discount to the value of its assets.

Japan Smaller Cap Fund …read more »

Like other stock markets around the world, Japanese markets remain volatile. Moreover, the slow U.S. economy continues to hurt Japan’s major export industries. However, we think that Japan’s interest-rate cuts and its recently enacted $143.7-billion U.S. stimulus package will keep stock prices rising.

JAPAN EQUITY FUND $4.79 (New York symbol JEQ; CWA Rating: Aggressive) mostly invests in large-capitalization stocks on the …read more »

INDIA FUND $28.91 (New York symbol IFN; Shares outstanding: 38.6 million; Market cap: $1.1 billion; CWA Rating: Aggressive) is up almost 40% since May 18, 2009. That’s when voters re-elected the Congress Party and its pro-business, pro-U.S. coalition.

India’s economy grew at a rate of 5.8% in the first quarter of this year. That’s down from 8.6% a year earlier, but …read more »

EUROPEAN EQUITY FUND $5.59 (New York symbol EEA; CWA Fund Rating: Conservative) mainly invests in large-capitalization European stocks in the 16 countries that use the Euro currency. It may invest up to 20% of its assets in countries that do not use the Euro currency.

The countries that use the Euro currency are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, …read more »

We still think high-quality mutual funds with a long-term focus will beat stock-market indexes over time. If funds invest as we advise — sticking with well-established companies and spreading their assets across the five main economic sectors — they will likely lose a lot less than the indexes during a significant market downturn.

That’s because big market slides are particularly hard …read more »

NASDAQ-100 TRUST SHARES $35.03 (Nasdaq Exchange symbol QQQQ; buy or sell through brokers), or “Qubes,” hold the stocks that represent the Nasdaq 100 Index, which is made up of the 100 largest, most heavily traded stocks on the Nasdaq exchange.

The index contains firms from a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It …read more »

DIAMONDS TRUST SHARES $85.20 (American Exchange symbol DIA; buy or sell through brokers) hold the 30 stocks that make up the Dow Jones Industrial Average.

The fund’s top 10 holdings are: IBM, Exxon Mobil, Chevron Corp., 3M, Procter & Gamble, McDonald’s Corp., Johnson & Johnson, Wal-Mart Stores, United Technologies and Coca-Cola. The fund’s expenses are about 0.17% of its assets.

Diamonds Trust …read more »

S&P DEPOSITORY RECEIPTS $92.14 (American Exchange symbol SPY; buy or sell through brokers) are commonly called “Spiders.” The fund holds the stocks in the S&P 500 Index, which consists of 500 major U.S. stocks that are chosen based on their market share, liquidity and industry group.
The index’s 10 highest-weighted stocks are: Exxon Mobil, Procter & Gamble, General Electric, AT&T, Johnson …read more »

SINGAPORE FUND $7.10 (New York symbol SGF; Shares outstanding: 9.5 million; Market cap: $67.3 million; CWA Rating: Aggressive) is fully invested in Singapore-based stocks. The Development Bank of Singapore manages the fund.

Singapore relies on exports for much of its growth. Major markets, like the U.S., China and Japan, are important to its economy. When these markets recover, Singapore’s prospects should …read more »

INDIA FUND $17.40 (New York symbol IFN; Shares outstanding: 38.6 million; Market cap: $672.3 million; CWA Rating: Aggressive) mainly invests in large-cap Indian stocks. Blackstone Group manages the fund.

India’s economy has grown by more than 9% annually over the last few years. The global recession will hurt the country’s growth, but it could still expand by as much as 7% …read more »

NEW IRELAND FUND $4.26 (New York symbol IRL; Shares outstanding: 5.1 million; Market cap: $21.8 million; CWA Rating: Aggressive) invests in Irish companies. The Bank of Ireland manages the $50.9-million New Ireland Fund. The bank dates back to 1783.

Lower housing prices and a struggling banking sector have hurt the Irish economy. However, the country is open to foreign investment, and …read more »

Around the world, governments have been increasing spending in a bid to counter the recession. When these efforts start to take effect, and economic growth resumes, top-quality foreign stocks should rebound.

Here are four closed-end funds that trade on the New York exchange at discounts to their net asset values. All four funds hold top-quality stocks. We see all four as …read more »

SWISS HELVETIA FUND $8.96 (New York symbol SWZ; Shares outstanding: 33.3 million; Market cap: $297.8 million; CWA Rating: Conservative) invests mainly in large-capitalization Swiss stocks. Hottinger Group, which dates back to 1786, manages the fund.

The Swiss government has moved quickly to restore confidence in the country’s banking system. It’s also lowering interest rates to ease credit and devalue the Swiss …read more »

There are, in some cases, ways of structuring your business affairs using offshore investing companies or trusts that can cut or defer your taxes. You may also be able to protect your assets from legal judgments rendered in Canada if you move them to accounts in certain foreign jurisdictions.

Earnings in an “offshore account” are generally lightly taxed, or not …read more »

We think this market rise could last for weeks if not months. It could even turn out to be the start of a new long-term rising phase.

One positive sign is that many stocks are now cheap in relation to their dividends and assets. Many are also cheap in relation to current earnings. Others are attractive, despite recession-depressed profits, because their …read more »

One way to minimize your investment risk is to diversify. For example, you can spread your investments out across the five main economic sectors. This way, you minimize the chances of a big loss in your portfolio from a setback in any one sector. Another way to diversify is to invest a portion of your portfolio in international stocks.

There …read more »

I’m a lukewarm fan at best of many government regulations. But I was happy to hear that the U.S. may re-instate the ‘uptick rule’.

Some financial institutions are vulnerable today partly because of bad regulatory rules. Without the uptick rule, hedge funds are free to sell them short at any price, forcing them down before they can mend their balance sheets. …read more »