diversification
What is diversification?
Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.
What is diversification?
Our view hasn’t changed—virtually all Canadians should have, say, 20% to 30% of their portfolio in U.S. stocks, or in ETFs holding those stocks. In fact, for some investors, that’s all the foreign exposure their portfolios really need. U.S. stock markets have performed much better than most other equity markets over the past decade and our advice has paid off for those investors....
Choosing good Canadian stocks for your well-diversified retirement portfolio will lead to a more financially secure retirement
Here are some key tips on how to buy U.S. stocks to benefit from both diversification and some of the market’s strongest, highest-quality stocks
Invest in high-quality stocks and diversify to develop a conservative retirement portfolio to rely on during your golden years
Power and Profits of Energy Stocks has 35 tips on how to uncover tomorrow’s best energy stocks, insights on the future of renewable energy, how technology is changing the industry, and much more.
Cobalt 27 Capital Corp. branches out into other battery metals including nickel and lithium as it continues to pursue streaming deals and become less dependent on a single commodity price.
We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through exchange-traded funds (ETFs) with an overseas focus.
The best of those ETFs 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 suitable for new buying and two others we feel you should continue to hold.
ISHARES MSCI EMERGING MARKETS ETF $43.60 (New York symbol EEM; buy or sell through brokers) is designed to track the MSCI Emerging Markets Index.
The fund’s geographic breakdown is as follows: China, 33.0%; South Korea, 12.9%; Taiwan, 11.5%; India, 9.0%; Brazil, 7.0%; South Africa, 6.2%; Russia, 3.8%; Mexico, 2.7%; Thailand, 2.3%; Indonesia, 2.1%; Malaysia, 2.1%; and Poland, 1.1%.
Its top stocks are Tencent Holdings (China: Internet), 5.2%; Alibaba Group (China: e-commerce), 4.5%; Taiwan Semiconductor (computer chips), 3.8%; Samsung Electronics (South Korea), 3.5%; Naspers (South Africa: media and Internet), 2.1%; China Construction Bank, 1.6%; Ping An Insurance Group (China), 1.1%; China Mobile, 1.1%; Industrial & Commercial Bank of China, 1.0%; and Reliance Industries (India: conglomerate), 1.0%.
iShares launched the ETF on April 7, 2003....
The best of those ETFs 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 suitable for new buying and two others we feel you should continue to hold.
ISHARES MSCI EMERGING MARKETS ETF $43.60 (New York symbol EEM; buy or sell through brokers) is designed to track the MSCI Emerging Markets Index.
The fund’s geographic breakdown is as follows: China, 33.0%; South Korea, 12.9%; Taiwan, 11.5%; India, 9.0%; Brazil, 7.0%; South Africa, 6.2%; Russia, 3.8%; Mexico, 2.7%; Thailand, 2.3%; Indonesia, 2.1%; Malaysia, 2.1%; and Poland, 1.1%.
Its top stocks are Tencent Holdings (China: Internet), 5.2%; Alibaba Group (China: e-commerce), 4.5%; Taiwan Semiconductor (computer chips), 3.8%; Samsung Electronics (South Korea), 3.5%; Naspers (South Africa: media and Internet), 2.1%; China Construction Bank, 1.6%; Ping An Insurance Group (China), 1.1%; China Mobile, 1.1%; Industrial & Commercial Bank of China, 1.0%; and Reliance Industries (India: conglomerate), 1.0%.
iShares launched the ETF on April 7, 2003....
Investors looking for low-cost blue chip stocks may not find what they’re looking for—the most-reliable stocks in the market are rarely “on sale”
A: Both of these ETFs hold stocks in most or all of the five main economic sectors: Finance, Utilities, Resources, Consumer and Manufacturing.
The iShares Canadian Select Dividend Index ETF, $24.28, symbol XDV on Toronto (Units outstanding: 57.1 million; Market cap: $1.4 billion; www.blackrock.com/ca), holds 30 of the highest-yielding Canadian stocks.
The ETF’s rough breakdown by sector is Finance, 57%; Utilities, 27%; Resources, 12%; and Manufacturing 4%....
The iShares Canadian Select Dividend Index ETF, $24.28, symbol XDV on Toronto (Units outstanding: 57.1 million; Market cap: $1.4 billion; www.blackrock.com/ca), holds 30 of the highest-yielding Canadian stocks.
The ETF’s rough breakdown by sector is Finance, 57%; Utilities, 27%; Resources, 12%; and Manufacturing 4%....
A: Cobalt 27 Capital Corp., $3.94, symbol KBLT on the Toronto Venture Exchange (Shares outstanding: 85.3 million; Market cap: $331.9 million; www.cobalt27.com), holds what is believed to be the world’s largest private stockpile of physical cobalt at over 2,900 tonnes....