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?
We think conservative investors can hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange-traded funds (ETFs) that have an overseas focus.
The best ETFs continue to offer very low management fees and well-diversified, tax-efficient portfolios of highquality stocks.
Here’s a look at four international ETFs we see as buys, and two we feel you should hang on to:
ISHARES MSCI EMERGING MARKETS INDEX FUND $37.36 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.
The fund’s geographic breakdown includes China, 26.1%; South Korea, 14.7%; Taiwan, 12.0%; India, 8.1%; Brazil, 8.0%; South Africa, 6.6%; Russia, 4.2%; Mexico, 3.4%; Indonesia, 2.5%; Malaysia, 2.5%; Thailand, 2.3%; and the Philippines, 1.2%.
Its top holdings are Samsung Electronics (South Korea), 4.1%; Tencent Holdings (China: Internet), 3.6%; Taiwan Semiconductor (computer chips), 3.5%; Alibaba Group (China: e-commerce), 2.7%; Naspers (South Africa: media and Internet), 1.7%; China Mobile, 1.7%; China Construction Bank, 1.5%; Baidu (China: Internet), 1.1%; Industrial & Commercial Bank of China, 1.1%; and Hon Hai Precision (Taiwan), 1.0%.
iShares launched the ETF on April 7, 2003....
The best ETFs continue to offer very low management fees and well-diversified, tax-efficient portfolios of highquality stocks.
Here’s a look at four international ETFs we see as buys, and two we feel you should hang on to:
ISHARES MSCI EMERGING MARKETS INDEX FUND $37.36 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.
The fund’s geographic breakdown includes China, 26.1%; South Korea, 14.7%; Taiwan, 12.0%; India, 8.1%; Brazil, 8.0%; South Africa, 6.6%; Russia, 4.2%; Mexico, 3.4%; Indonesia, 2.5%; Malaysia, 2.5%; Thailand, 2.3%; and the Philippines, 1.2%.
Its top holdings are Samsung Electronics (South Korea), 4.1%; Tencent Holdings (China: Internet), 3.6%; Taiwan Semiconductor (computer chips), 3.5%; Alibaba Group (China: e-commerce), 2.7%; Naspers (South Africa: media and Internet), 1.7%; China Mobile, 1.7%; China Construction Bank, 1.5%; Baidu (China: Internet), 1.1%; Industrial & Commercial Bank of China, 1.1%; and Hon Hai Precision (Taiwan), 1.0%.
iShares launched the ETF on April 7, 2003....
Dear Inner Circle member,
One of our portfolio-management clients just wrote, “I read your new client letter regarding your outlook for the markets given the Trump presidency. I’m wondering about how those thoughts align with the fact that, except for a brief downturn in the Canadian market, since the last recession, we’ve had strong market growth since 2009....
One of our portfolio-management clients just wrote, “I read your new client letter regarding your outlook for the markets given the Trump presidency. I’m wondering about how those thoughts align with the fact that, except for a brief downturn in the Canadian market, since the last recession, we’ve had strong market growth since 2009....
Dear Inner Circle member,
As you probably know, our Successful Investor investment approach has three key parts:
We see our three-part approach as your best foundation for building an investment portfolio that expands your prospects for growth while keeping risk in check....
As you probably know, our Successful Investor investment approach has three key parts:
- Invest mainly in well-established, profitable, dividend-paying stocks;
- spread your money out across most if not all of the five main economic sectors;
- downplay or avoid stocks in the broker/media limelight.
We see our three-part approach as your best foundation for building an investment portfolio that expands your prospects for growth while keeping risk in check....
Here are our best tips and strategies for becoming a successful stock investor
A: No one can consistently predict currency movements, and we still feel that most Canadian investors should hold, say, up to 30% of their portfolio in U.S. stocks. Note that even if the U.S. dollar falls against the Canadian dollar, your U.S. stocks can appreciate even while the currency sags.
But looking at your question:
There is no easy way to hedge individual U.S....
But looking at your question:
There is no easy way to hedge individual U.S....
Continue reading to find out answers to these questions: What are ETFs? Are ETFs good investments? Should I make ETFs part of my diversified portfolio?
Have you ever wondered, “what are ETFs?” and how can they impact my investment returns?
Exchange traded funds (ETFs) are set up to mirror the performance of a stock-market index or sub-index....
Investing money wisely is all the more important when there’s a highly uncertain stock market outlook.
Dear Inner Circle Member,
A friend, Mr. S., stands to make a large profit on his home, and he wonders if he should sell. A lot of homeowners in Toronto and the surrounding suburbs are asking themselves that question, but my friend’s case is different. He bought his house 15 years ago for $325,000....
A friend, Mr. S., stands to make a large profit on his home, and he wonders if he should sell. A lot of homeowners in Toronto and the surrounding suburbs are asking themselves that question, but my friend’s case is different. He bought his house 15 years ago for $325,000....
A: Liberty All-Star Equity Fund, $5.22, symbol USA on New York (Units outstanding: 186.8 million; Market cap: $975.1 million; www.all-starfunds.com), is a closed-end fund that aims to combine the stock recommendations of three value-style and two growth-style investment managers.
The fund started up on October 31, 1986, and its MER is 1.03%.
The fund’s top holdings are Alphabet, Inc., Mondelez International, Visa Inc., Salesforce.com, Facebook, Inc., The Priceline Group, Amazon.com, Halliburton Co., Adobe Systems and Bank of America Corp.
Liberty All-Star Equity Fund takes on an above-average level of risk with its holdings: its highest industry group weighting is Information Technology at 21.4%.
The fund also has a high 9.2% yield....
The fund started up on October 31, 1986, and its MER is 1.03%.
The fund’s top holdings are Alphabet, Inc., Mondelez International, Visa Inc., Salesforce.com, Facebook, Inc., The Priceline Group, Amazon.com, Halliburton Co., Adobe Systems and Bank of America Corp.
Liberty All-Star Equity Fund takes on an above-average level of risk with its holdings: its highest industry group weighting is Information Technology at 21.4%.
The fund also has a high 9.2% yield....
If you’re looking for a top income stock, look for an investment that has consistently paid dividends