etf

The year turned out to be tough globally for most asset classes.


The Vanguard Total Bond Index ETF (BND) lost 3% over the year while the Vanguard Total World Stocks ETF (VT) lost 12.5% after big final quarter losses. Real Estate, as measured by the iShares Global REIT ETF (REET), lost 9.8%....

With broad-based losses across all of the major investment classes, the year 2018 will not be fondly remembered by many investors. However, some ETFs defied the odds and generated spectacular returns.


Here are three of the highest-returning ETFs of 2018.


DIREXION NATURAL GAS BEAR 3X ETF $33.17 (New York symbol GASX) invests in futures and options that in combination provide three times the opposite return of the ISE Natural Gas Index....

Russia has a huge economy, considerable natural resources, especially oil and gas, and a large labour force. Its emergence from communist rule in 1990 and the large-scale privatization of government-owned entities raised hopes that it would become one of the top-performing emerging economies.


Despite the strong performance of Russian between 1996 and 2008, it has faltered over the past decade....

Declining commodity prices and international sanctions have hurt the Russian economy. But despite that, the country has proved surprisingly resilient. The economy is on a modest growth path, government finances are in reasonable shape, inflation is under control and the currency has stabilized.


Here is one ETF that provides exposure to the top Russian public companies.


VANECK VECTORS RUSSIA ETF $20.08 (New York symbol RSX; TSINetwork ETF Rating: Aggressive; Market cap: $1.5 billion) tracks the MVIS Russia Index, which includes publicly traded companies that are incorporated in Russia or that are incorporated outside of Russia but have at least 50% of their revenues/related assets in Russia.


Energy firms account for 41% of its assets, with commodities at 23%; Financial Services, 12%; Consumer Defensive, 8%; and Technology, 7.0%.


The ETF holds a portfolio of 27 stocks; the top 10 holdings make up a high 56% of its assets....

Governments around the world know the benefits that flow from the development of better infrastructure. However, their stretched budgets and a reluctance to increase taxes constrain their ability to initiate these projects. This provides opportunities for private companies to develop and manage these assets.


Here are three ETFs that invest in publicly listed companies that own and operate infrastructure assets (see the supplement on page 20 for more information).


FLEXSHARES STOXX GLOBAL BROAD INFRASTRUCTURE ETF $45.49 (New York symbol NFRA; TSINetwork ETF Rating: Aggressive; Market cap: $791.0 million) tracks the Stoxx Global Broad Infrastructure Index....

ETFs have two major advantages over traditional mutual funds.


First, they are easy to trade on stock exchanges, which gives them better liquidity.


Second, and perhaps more important, ETFs provide a low-cost investment option. In many cases, they also have superior performance results compared to mutual funds, even before fees have been taken into account.


Compare the following: Various ETFs track the Canadian equity market....

SPDR S&P 500 ETF $258 (New York symbol SPY) holds the stocks in the S&P 500 Index; they are 500 major U.S. companies chosen based on their market cap, liquidity and industry group.


The highest-weighted stocks for the SPDR S&P 500 ETF are Microsoft, 3.8%; Apple, 3.4%; Amazon.com, 2.9%; Alphabet, 2.9%; Berkshire Hathaway, 1.9%; Johnson & Johnson, 1.6%; Facebook, 1.6%; JPMorgan Chase, 1.5%; ExxonMobil, 1.4%; Pfizer, 1.2%; and UnitedHealth, 1.3%....

One of the key lessons from financial market history is that stocks perform better than almost any other asset class over long periods. There will inevitably be periods of heightened volatility or even sustained market downturns. But at the same time, a focus on high-quality, dividend-paying companies will provide the best portfolio returns.


Here are two ETFs aimed at focusing on stocks that gain along with the market, but that also hold on to their value in market setbacks....

INVESCO CHINA SMALL CAP PORTFOLIO ETF $22.65 (New York Exchange symbol HAO; buy or sell through brokers; www.invesco.com) aims to track the AlphaShares China Small Cap Index. It’s made up of the 329 Chinese stocks that foreign investors are allowed to hold and that have market caps of less than $1.5 billion....

The six ETFs we update below mainly hold high-quality stocks that are widely traded on Canadian and U.S. exchanges. Each fund tracks the performance of a major stock market index. That’s different from ETFs focused on narrower indexes or themes such as cryptocurrencies or biotechnology.


Of course, you pay brokerage commissions to buy and sell these investments....