Topic: How To Invest

Pat: I have been converting my portfolio from mutual funds, some stocks and ETFs to your recommendations since I joined the Inner Circle. I am holding three ETFs that I purchased prior to Europe melting down, and I’m wondering what to do with them. They are the iShares FTSE/Xinhua China 25 ETF, the Vanguard Emerging Markets ETF and the Vanguard MSCI EAFE ETF. They make up only a small part of my portfolio. Thanks.

Article Excerpt

Our view is that virtually all Canadian investors could add some foreign exchange traded funds (ETFs), such as those we recommend in Canadian Wealth Advisor, in reasonable quantities: perhaps 10% of your holdings if you are a conservative investor (including 5% or so in higher-risk funds, such as emerging market ETFs). That includes the iShares FTSE/Xinhua China 25 ETF, $34.46, symbol FXI on New York (Shares outstanding: 135.6 million; Market cap: $4.7 billion), and the Vanguard Emerging Markets ETF, $41.35, symbol VWO on New York (Shares outstanding: 1.3 billion; Market cap: $53.8 billion). Canadian Wealth Advisor views both of these funds as buys. The Vanguard MSCI EAFE ETF, $33.00, symbol VEA on New York (Shares outstanding: 266.0 million; Market cap: $8.8 billion), invests in the developed markets of the 16 European (64% of assets) and five Pacific Rim countries (36%) included in the MSCI EAFE Index. This ETF holds mostly well-established, high-quality stocks: its top holdings are Royal Dutch Shell plc, Nestle SA,…