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SPDR S&P 500 ETF $119.95 (New York symbol SPY; buy or sell through brokers; www.spdrs.com) holds the stocks in the S&P 500 Index, which consists of 500 major U.S. stocks that are chosen based on their market cap, liquidity and industry group. The index’s highest-weighted stocks are Exxon Mobil, Microsoft, Procter & Gamble, Apple, JP Morgan Chase & Co., Johnson & Johnson, IBM, Chevron, General Electric, Coca Cola, Google and AT&T. The fund’s expenses are just 0.10% of its assets....

ISHARES DOW JONES CANADA SELECT DIVIDEND INDEX FUND $20.26 (Toronto symbol XDV; buy or sell through a broker; ca.ishares.com) holds 30 of the highest-yielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of assets. The fund’s MER is 0.50%. It yields 5.3%. The fund’s top holdings are CIBC, 8.0%; Bank of Montreal, 6.4%; National Bank, 5.7%; TD Bank, 5.6%; Telus, 5.2%; Bank of Nova Scotia, 4.6%; Manitoba Telecom, 4.5%; IGM Financial, 4.2%; Royal Bank, 4.0%; Enbridge, 3.5%, TMX Group, 3.5%; and TransCanada Corp., 3.3%. The fund holds 60.1% of its assets in financial stocks. Utilities are next, at 23.0%. The top Canadian finance stocks have sound prospects. However, if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector....

ISHARES S&P/TSX 60 INDEX FUND $18.24 (Toronto symbol XIU; buy or sell through a broker; ca.ishares.com) (units split 4-for-1 in August 2008) is a good, low-fee way to buy the top stocks and income trusts on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets. Most of the stocks in the index are high-quality companies. However, as it must ensure that all sectors are represented, it holds a few we wouldn’t include, such as Yellow Pages Income Fund. The index’s top holdings are: Royal Bank, 7.2%; TD Bank, 5.9%; Bank of Nova Scotia, 5.2%; Suncor Energy, 4.7%; Barrick Gold, 4.5%; Potash Corp., 4.0%; Canadian Natural Resources, 3.7%; Bank of Montreal, 3.1%; Goldcorp, 3.1%; CN Railway, 2.8%; CIBC, 2.8%; Research in Motion, 2.5%; and Trans- Canada Corp., 2.4%....

CANADIAN REIT $32 (Toronto symbol REF.UN; Units outstanding: 66.6 million; Market cap: $2.1 billion; SI Rating: Extra Risk; Dividend yield: 4.4%; www.creit.ca) owns over 160 properties. Its holdings include retail, industrial and office buildings located across Canada, and in the Chicago area. In all, these properties contain over 22 million square feet of leasable area. Canadian REIT’s occupancy rate is 97.1%. In the three months ended September 30, 2010, Canadian REIT’s revenue was $80.3 million. That’s up 1.6% from $79 million a year earlier. Cash flow per unit was unchanged at $0.57. The trust raised its monthly distribution by 2.2%, to $0.1175 from $0.1150, with the June 2010 payment. This is the ninth consecutive year that the REIT has raised its distribution. The units now yield 4.4%....

RIOCAN REAL ESTATE INVESTMENT TRUST $23.15 (Toronto symbol REI.UN; Units outstanding: 250.9 million; Market cap: $5.8 billion; SI Rating: Average; Dividend yield: 6.0%; www.riocan.com) is Canada’s largest REIT. RioCan has interests in 289 shopping malls across Canada, including 11 under development. In all, these properties contain over 66 million square feet of leasable area. The trust has a 97.1% occupancy rate. RioCan is Canada’s largest owner of neighbourhood shopping centres, which are enclosed malls in smaller cities. But the trust’s strongest growth is in its “New Format” malls, in the suburbs of larger cities. RioCan is Canada’s largest owner of these malls, which have lots of parking and room for new building, and mainly consist of big-box stores, or large stores that are usually part of a chain. RioCan also owns an 80% interest in 28 malls in the U.S. through joint ventures. As well, it owns 14% of Cedar Shopping Centers, a U.S. REIT that owns malls anchored by supermarkets and drug stores, mainly in the northeastern U.S....

GUGGENHEIM ALPHASHARES CHINA SMALL CAP INDEX ETF $32.72 (New York Exchange symbol HAO; buy or sell through brokers; www.guggenheimfunds.com) is the new name of Claymore/AlphaShares China Small Cap Index ETF. Guggenheim Partners bought Claymore Group in 2009, and has renamed the Claymore funds. This ETF aims to track the AlphaShares China Small Cap Index. This index is made up of all investable Chinese stocks with market caps between $200 million and $1.5 billion. The $496.6-million fund’s top holdings are PICC Property & Casualty, 2.6%; Focus Media Holdings, 2.1%; Air China, 2.0%; Weichai Power Co., 1.9%; Yangzijiang Shipbuilding, 1.8%; Cosco Pacific, 1.8%; Brilliance China Automotive Holdings, 1.8%; Shandong Wiegao Group Medical, 1.6%; Sohu.com, 1.6%; and ZTE Corp., 1.5%....

SPDR S&P CHINA ETF $83.37 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com), is an exchange-traded fund that aims to track the S&P China BMI Index. This index is made up of all of the publicly traded Chinese stocks that are available to foreign investors. Right now, SPDR S&P China ETF holds 147 stocks. The $730.3-million fund’s top holdings are: China Construction Bank, 7.4%; China Mobile, 6.8%; Industrial & Commercial Bank of China, 5.2%; Bank of China, 4.4%; China Life Insurance, 4.4%; CNOOC Ltd., 4.2%; Baidu Inc., 4.0%; PetroChina, 3.4%; Tencent Holdings Ltd., 2.6%; and China Petroleum & Chemical, 2.2%. The fund’s breakdown by industry is as follows: Financials, 33.6%; Oil and Gas, 14.5%; Information Technology, 11.4%; Telecommunication Services, 8.9%; Consumer Discretionary, 7.2%; Basic Materials, 5.6%; Consumer Staples, 5.2%; Utilities, 2.0%; and Health Care, 1.0%....

BCE INC. $33.76 (Toronto symbol BCE; Shares outstanding: 755.6 million; Market cap: $25.5 billion; SI Rating: Above Average; Dividend yield: 5.4%; www.bce.ca) provides telephone and Internet services in Ontario and Quebec. It also sells wireless and satellite-TV services across Canada. In the three months ended June 30, 2010, BCE’s revenue rose 3.3%, to $4.4 billion from $4.3 billion in the prior year. Before one-time items, earnings rose 32.8%, to $0.77 from $0.58. Strong demand for wireless and television services offset falling revenue from the company’s traditional telephone operations. As well, the company bought “The Source” chain of electronics stores in 2009, as well as the remaining 50% of the Virgin Mobile Canada joint venture. BCE is buying full control of CTVglobemedia, the private company that owns the 27-station CTV Television Network. CTVglobemedia also owns 30 specialty channels, 34 radio stations and The Globe and Mail newspaper. Right now, BCE owns 15% of CTVglobemedia. It will pay $1.3 billion for the remaining 85%. Following the purchase, BCE will sell 85% of The Globe and Mail to Woodbridge Co....

Gold hit yet another all-time high of $1,383.10 U.S. an ounce in yesterday’s trading. It closed the day at $1,381.00, up $45.50. A major factor in this latest gold-price rise was the Federal Reserve’s Wednesday announcement that it plans to inject $600 billion into the U.S. economy. That could spur inflation or further weaken the U.S. dollar. Continued low interest rates only add to inflation concerns. These fears are prompting more investors to buy gold and gold investments, because they believe gold will provide them with additional security....

A key part of our three-part investment approach is to stick with well-established, dividend-paying companies. (The other two parts are to spread your money out across the five main economic sectors, and downplay stocks in the broker/public-relations limelight.) Most well-established companies have built up strong reputations that can help them overcome the inevitable downturns. Their trusted brands also make it easier for them to launch new products, or expand into new markets. ...

In just under two months, on January 1, 2011, you will gain an additional $5,000 of contribution room in your tax free savings account (TFSA). The federal government first made tax free savings accounts (TFSAs) available to investors in January 2009. These accounts let you earn investment income — including interest, dividends and capital gains — tax free. You could contribute $5,000 in 2009 to start your tax free savings account. Every year, you can contribute an additional $5,000 to your TFSA. If you contribute less than $5,000 to your TFSA in any given year, you can carry the difference forward. That means your TFSA contributions for 2009 and 2010 total $10,000, rising to $15,000 in 2011, $20,000 in 2012 and so on....

On Thursday, October 29, two directors of Maple Leaf Foods Inc. (symbol MFI on Toronto) from the Ontario Teachers’ Pension Plan resigned their positions. Maple Leaf is Canada’s largest food processor. It sells most of its products, which include fresh and prepared meats and poultry, under the Maple Leaf and Schneider brands. The company is one of the stock market picks we’ve long recommended in our Successful Investor newsletter. ...

THE JONES GROUP INC. $15 (New York symbol JNY; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 87.1 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.3%; WSSF Rating: Average) is the new name of Jones Apparel Group. The company designs clothing, accessories and footwear. Jones sells most of its products through department stores. It also sells goods through its own retail stores. However, it plans to close 290 underperforming stores by the end of this year. That will leave it with around 800 outlets. If you exclude store-closure and severance costs, Jones earned $45.1 million in the three months ended September 30, 2010, up 20.3% from $37.5 million a year earlier. Earnings per share rose 17.4%, to $0.54 from $0.46, on more shares outstanding. Sales rose 19.4%, to $1.0 billion from $855.7 million a year earlier....

H.J. HEINZ CO. $49 (New York symbol HNZ; Income Portfolio, Consumer sector; Shares outstanding: 318.3 million; Market cap: $15.6 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.7%; WSSF Rating: Above Average) makes a wide variety of processed foods, including condiments, sauces, soups, baked beans, pastas and infant food. Its flagship product, Heinz Ketchup, accounts for about 60% of U.S. ketchup sales. The company continues to expand its main brands, including Ore-Ida (frozen potatoes), Classico (pasta sauces) and Weight Watchers (diet foods). Heinz’s 15 top-selling brands each generate annual sales of over $100 million. Together, they supply 70% of Heinz’s total sales. Heinz’s sales rose 21.4%, from $8.6 billion in 2006 to $10.5 billion in 2010 (fiscal years end April 30)....

CAMPBELL SOUP CO. $36 (New York symbol CPB; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 335.7 million; Market cap: $12.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.1%; WSSF Rating: Above Average) is the world’s largest maker of canned soups. It also makes Prego canned pasta and sauces, Pepperidge Farm cookies and V8 vegetable juices. The company gets 30% of its sales from international markets. Its biggest foreign markets are Australia and Europe. Campbell looks overseas for growth...

LIMITED BRANDS INC. $29 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 322.8 million; Market cap: $9.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.1%; WSSF Rating: Average) operates two main retail chains: Victoria’s Secret (lingerie) and Bath & Body Works (soaps and bath oils). It also operates the La Senza lingerie chain in Canada and 30 other countries. The company cut its inventories in response to the recession. That let it avoid costly clearance sales, and sell more of its goods at full price. In its fiscal 2011 second quarter, which ended July 31, 2010, Limited earned $120.6 million, up 100.1% from $60.3 million a year earlier. Earnings per share rose 89.5%, to $0.36 from $0.19, on more shares outstanding. The latest figure excludes a gain on the sale of its remaining 25% stake in the Limited clothing-store chain....

LIZ CLAIBORNE INC. $6.38 (New York symbol LIZ; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 94.5 million; Market cap: $602.9 million; Price-to-sales ratio: 0.2; No dividends paid since December 2008; WSSF Rating: Extra Risk) designs and sells clothing and accessories for men and women. Its top brands include Liz Claiborne, Juicy Couture and Kate Spade. Liz Claiborne continues to cut costs in response to falling sales: Liz Claiborne has closed 10 distribution centres since 2007. It has also sold less-profitable brands and closed stores. As well, the company hopes to spur growth with new licensing deals with J.C. Penney (see page 104) and the QVC TV shopping channel. The transition of the Liz Claiborne brands to J.C. Penney and QVC caused sales in the three months ended July 3, 2010 to fall 15.5%, to $569.8 million from $674.6 million a year earlier. The company lost $0.19 a share in the quarter, a 61.2% improvement over its year-earlier loss of $0.49 a share....

MACY’S INC. $23 (New York symbol M, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 422.7 million; Market cap: $9.7 billion; Price-to-sales ratio: 0.4; Dividend yield: 0.9%; WSSF Rating: Average) operates 850 department stores under the Macy’s and Bloomingdale’s banners. It also sells goods over the Internet. The company recently let its store managers tailor more of their stores’ goods to local tastes. As well, Macy’s is selling more products promoted by celebrities, such as Martha Stewart. Both of these moves have helped attract more customers. In its fiscal 2011 second quarter, which ended July 31, 2010, Macy’s earned $0.35 a share. That’s up 75.0% from the $0.20 a share, excluding restructuring charges, that the company earned a year earlier. Sales rose 7.2% in the latest quarter, to $5.5 billion from $5.2 billion. Same-store sales rose 4.9%. Online sales jumped 28.1%....

NORDSTROM INC. $38 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 219.2 million; Market cap: $8.3 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.1%; WSSF Rating: Average) mainly sells upscale clothing, accessories and footwear. The company owns and operates 200 outlets, including 115 department stores, in 28 U.S. states. In its fiscal 2011 second quarter, which ended July 31, 2010, Nordstrom’s revenue rose 12.7%, to $2.5 billion from $2.2 billion a year earlier. Same-store sales rose 8.4%, mainly due to strong demand for women’s clothing, shoes and jewellery. Nordstrom is also benefiting from recent investments in its web site: online sales rose 34.1%. Earnings per share rose 37.5%, to $0.66 from $0.48. Nordstrom benefits from its focus on upscale shoppers. That’s because these consumers are less affected by economic downturns. However, the company aims to attract more cost-conscious customers by opening between 30 and 45 of its Nordstrom Rack clearance stores over the next three years. It now has 82 of these stores....

J.C. PENNEY CO. INC. $32 (New York symbol JCP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 236.4 million; Market cap: $7.6 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.5%; WSSF Rating: Average) operates 1,100 department stores in the U.S. and Puerto Rico. It also sells goods over the Internet. In its second quarter, which ended July 31, 2010, J.C. Penney reported sales of $3.9 billion, unchanged from a year earlier. Higher clothing sales offset the lost revenue from the shutdown of J.C. Penney’s catalogue business. On a same-store basis, sales rose 0.9%. Online sales rose 4.0%. The company earned $14 million, or $0.06 a share, in the latest quarter. That’s much better than the $1 million, or nil per share, it lost a year earlier. J.C. Penney is doing a good job of managing its inventories. That cuts the need for costly clearance sales....

Growth stocks are companies whose earnings growth has been above the market average, and is likely to remain above average. These firms often pay little or no dividends. Instead, they invest their free cash flow in furthering their growth.

These stocks can be highly volatile, but they often make good long-term investments....

Members of our Inner Circle service often ask for our advice on Canadian stock picks they are thinking of buying that we don’t cover in our newsletters. These companies range from the most speculative penny mines to large multinational corporations. For example, an Inner Circle member recently asked for our advice on athletic-clothing maker lululemon athletica. The Canadian stock pick’s revenue and earnings rose sharply in its latest quarter, but it operates in a very competitive market. To give you a sense of how the service works — and how you can profit from it — I’d like to share this question, and our answer, with you. I hope you enjoy and profit from it. Q: Pat: what do you think of lululemon as a stock? My wife loves their clothes....

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on successful investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Tip of the week: “Short sellers make money fast when they win, but most wind up losing.” When you sell short, you borrow stock from a broker and then sell it. However, you eventually have to buy back the stock on the market to return it to its owner....

You can enhance your long-term investment results by following these 3 key tips for investing in the stock market. They’ve long been part of the advice we give in our investment services and newsletters, including Canadian Wealth Advisor, our advisory for conservative investing. 1. Treat all predictions with a healthy degree of skepticism: Thanks to the Internet, it’s possible to get hold of far more information than ever before. From there, it’s easy to fashion a theory or accept a conclusion that is missing just enough key material to be completely at odds with reality. This can happen to anybody. That includes teams of award-winning journalists and editors at major newspapers, top-paid investment analysts at the world’s biggest financial institutions — and you. That’s why you need to treat all predictions — yours and everybody else’s — with a healthy degree of skepticism. You can take them into account, let them influence your investment decisions, even skew your portfolio so you can profit if they hit the mark. But keep it within limits. Never let a prediction take the place of diversification....

The improving U.S. economy is helping more consumers repay their loans on time. That’s pushing down loan losses at a number of U.S. banks, and improving their profits. However, the outlook for the U.S. banking sector remains uncertain. High unemployment continues to hurt demand for new loans, and the industry faces greater regulations under the Obama administration’s new financial reforms. ...