commodity

We continue to recommend that all investors own two to three of Canada’s big five banks, including Bank of Montreal (see page 41). Despite the recent market swings, they should continue to profit from their recent acquisitions and their shift to low-cost online transactions.


ROYAL BANK OF CANADA $97 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $135.8 billion; Price-to-sales: 3.5; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.rbc.com) is Canada’s largest bank with assets of $1.27 trillion.


Royal continues to profit from its November 2015 purchase of Los Angeles-based City National Bank....
A: Keyera Corp. $34.77, symbol KEY on Toronto (Shares outstanding: 204.5 million; Market cap: $7.1 billion; www.keyera.com), provides a number of services to the oil and gas industry, including the collection, processing, storage and shipment of oil and gas.

The company operates through two main segments:
  • Keyera’s Gathering and Processing business owns and operates raw gas-gathering pipelines and processing plants....
A: Artis REIT, $13.67, symbol AX.UN on Toronto (Units outstanding: 149.3 million; Market cap: $2.1 billion; www.artisreit.com), owns 237 properties, totalling 24.8 million square feet of office (42.3%), industrial (43.7%) and retail (14.0%) space.

The REIT has holdings in both Canada and the U.S.: Alberta (16.5% of the total), Ontario (16.0%), Manitoba (15.7%), Saskatchewan (5.9%), B.C....
We think conservative investors can hold up to 10% of their portfolios in foreign stocks. One way to do that is by choosing exchange-traded funds (ETFs) with an overseas focus.


The best of those funds continue to offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks.


Here’s a look at four international ETFs we see as buys, and two we feel you should continue to hold.


ISHARES MSCI EMERGING MARKETS INDEX FUND $47.90 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.


The fund’s geographic breakdown follows: China, 29.8%; South Korea, 15.0%; Taiwan, 11.6%; India, 8.1%; Brazil, 7.4%; South Africa, 6.7%; Russia, 3.6%; Mexico, 2.9%; Malaysia, 2.5%; Thailand, 2.4%; Indonesia, 2.1%; and Poland, 1.2%.


Its top stocks are Tencent Holdings (China: Internet), 5.4%; Samsung Electronics (South Korea ), 4.6%; Alibaba Group (China: e-commerce), 3.8 %; Taiwan Semiconductor (computer chips), 3.7%; Naspers (South Africa: media and Internet ), 1.9%; China Construction Bank, 1.6%; Industrial & Commercial Bank of China, 1.2%; China Mobile, 1.20%; Baidu (China: Internet ), 1.1%; and Ping An Insurance Group (China), 1.0%.


iShares launched the ETF on April 7, 2003....
Our Successful Investor approach has a long track record of helping investors profit from commodities
Africa’s fifth largest nation by population, South Africa is the continent’s third biggest economy by gross domestic product. But weak commodity prices have slowed its economic growth and the controversial leadership of former president Jacob Zuma has zapped business confidence....
A: CCL Industries Inc., $66.25, symbol CCL.B on Toronto (Shares outstanding: 176.8 million; Market cap: $11.7 billion; www.cclind.com), primarily makes packaging products for the food, health-care, automotive and personal-care industries....
A: We see a number of sources of risk associated with investments like these.

Investing in political jurisdictions where legal issues are infrequently decided in favour of foreigners could make it difficult to take title—and subsequently transfer the title—of your investment....
Here’s the text of the most-recent letter I sent to our Portfolio Management clients in late January:

“Many investors now feel stock prices are too high, and offer little potential for capital gain, based on various market indicators. However, negative views like this have been common for years.

The market indicators that tell a negative story today all have the same basic structure....
A: Altius Minerals Corp., $14.11, symbol ALS on Toronto (Shares outstanding: 43.2 million; Market cap: $586.2 million; www.altiusminerals.com), owns royalty interests in 15 operating mines that produce both precious and base metals, including copper, zinc, potash, and both thermal and steelmaking coal....