diversification

We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through the selection of 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 $41.63 (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, 30.7%; South Korea, 14.0%; Taiwan, 11.6%; India, 8.6%; Brazil, 7.8%; South Africa, 6.2%; Russia, 3.8%; Mexico, 2.9%; Malaysia, 2.4%; Thailand, 2.4%; Indonesia, 2.1%; and Poland, 1.2%.


Its top stocks are Tencent Holdings (China: Internet), 4.5%; Taiwan Semiconductor (computer chips), 3.8%; Samsung Electronics (South Korea), 3.8%; Alibaba Group (China: e-commerce), 3.5%; Naspers (South Africa: media and Internet), 1.8%; China Construction Bank, 1.6%; China Mobile, 1.2%; Baidu (China: Internet), 1.1%; Ping An Insurance Group (China), 1.1%; Industrial & Commercial Bank of China, 1.0%; Vale SA (Brazil: mining), 1.0%; and Reliance Industries (India: conglomerate), 0.9%.


iShares launched the ETF on April 7, 2003....

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I spent a lot of time researching investment formulas in my 20s and 30s....

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Real estate investment trusts (REITs) can play a useful role in well-balanced, income-seeking portfolios. Not only can they provide regular and stable income streams, but they can also deliver capital gains. In addition, they can add diversification, reducing the overall risk and volatility of the portfolio.


Many investors are reluctant to consider direct investments into commercial property for their portfolios....

For new investors learning how to start a stock portfolio, buying high-quality stocks and diversification are key parts of the process

VANECK VECTORS VIETNAM ETF $16.49 (New York symbol VNM; buy or sell through brokers) holds Vietnamese companies and foreign firms that get a significant share of their revenue from the Southeast Asian nation.


The ETF’s top holdings are No Va Land (real estate), 9.0%; Vingroup (conglomerate), 8.4%; Masan Group (conglomerate), 7.5%; Vietnam Dairy, 7.4%; and the Bank For Foreign Trade of Vietnam, 6.6%....

On September 27, I sat in on a live broadcast of “The Current”, a CBC radio program, on the subject of the cannabis stock boom. It began with an almost-too-good-to-be-true interview with Rob Armstrong, a real, live GRQ (Got Rich Quick) investor. Rob is a chef in a northern Alberta oil facility....

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What to Invest in to Make Money: We recommend not just high-quality stocks, but a well-balanced portfolio as well