etf
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 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 continue to hold.
ISHARES MSCI EMERGING MARKETS INDEX FUND $41.20 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.
The fund’s geographic breakdown includes China, 26.9%; South Korea, 15.5%; Taiwan, 12.2%; India, 8.5%; Brazil, 6.9%; South Africa, 6.6%; Mexico, 3.6%; Russia, 3.4%; Indonesia, 2.5%; Malaysia, 2.4%; Thailand, 2.2%; and Poland, 1.3%.
Its top holdings are Tencent Holdings (China: Internet), 4.3%; Samsung Electronics (South Korea), 4.3%; Taiwan Semiconductor (computer chips), 3.6%; Alibaba Group (China: e-commerce), 3.0%; Naspers (South Africa: media and Internet), 2.0%; China Construction Bank, 1.5%; China Mobile, 1.5%; Hon Hai Precision (Taiwan), 1.2%; Baidu (China: Internet), 1.1%; and Industrial & Commercial Bank of China, 1.1%.
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 continue to hold.
ISHARES MSCI EMERGING MARKETS INDEX FUND $41.20 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.
The fund’s geographic breakdown includes China, 26.9%; South Korea, 15.5%; Taiwan, 12.2%; India, 8.5%; Brazil, 6.9%; South Africa, 6.6%; Mexico, 3.6%; Russia, 3.4%; Indonesia, 2.5%; Malaysia, 2.4%; Thailand, 2.2%; and Poland, 1.3%.
Its top holdings are Tencent Holdings (China: Internet), 4.3%; Samsung Electronics (South Korea), 4.3%; Taiwan Semiconductor (computer chips), 3.6%; Alibaba Group (China: e-commerce), 3.0%; Naspers (South Africa: media and Internet), 2.0%; China Construction Bank, 1.5%; China Mobile, 1.5%; Hon Hai Precision (Taiwan), 1.2%; Baidu (China: Internet), 1.1%; and Industrial & Commercial Bank of China, 1.1%.
iShares launched the ETF on April 7, 2003....
ISHARES INDIA 50 ETF $34.10 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that tracks the Nifty 50 index—the 50 largest, most liquid Indian securities. It began trading in November 2009.
The fund’s top holdings are: ITC (conglomerate), 7.3%; Housing Development Finance, 6.9%; Reliance Industries (conglomerate), 6.2%; HDFC Bank, 5.9%; Infosys (information technology), 5.5%; ICICI Bank, 5.2%; Larsen & Toubro (conglomerate), 4.1%; and Tata Consultancy (information technology), 3.8%....
The fund’s top holdings are: ITC (conglomerate), 7.3%; Housing Development Finance, 6.9%; Reliance Industries (conglomerate), 6.2%; HDFC Bank, 5.9%; Infosys (information technology), 5.5%; ICICI Bank, 5.2%; Larsen & Toubro (conglomerate), 4.1%; and Tata Consultancy (information technology), 3.8%....
MARKET VECTORS VIETNAM ETF $14.44 (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 Vietnam Dairy Products, 8.3%; Vingroup (conglomerate), 7.1%; the Bank for Foreign Trade of Vietnam, 7.0%; No Va Land Investment Group (real estate), 7.0%; and Masan Group (a food, resources and banking conglomerate), 6.1%.
Investing in Vietnam still comes with aboveaverage political risk....
The ETF’s top holdings are Vietnam Dairy Products, 8.3%; Vingroup (conglomerate), 7.1%; the Bank for Foreign Trade of Vietnam, 7.0%; No Va Land Investment Group (real estate), 7.0%; and Masan Group (a food, resources and banking conglomerate), 6.1%.
Investing in Vietnam still comes with aboveaverage political risk....
A: We’ve long advised holding 20% or more of your portfolio in U.S. stocks. We see exposure to U.S. stocks, and the U.S. dollar, as a valuable form of diversification. It also gives you a hedge against a drop in the Canadian dollar, especially if you hold your stocks in a U.S.-dollar brokerage account.
Canadian shareholders pay a 15% withholding tax on dividends from U.S....
Canadian shareholders pay a 15% withholding tax on dividends from U.S....
The best Canadian ETFs can be a really good addition to your portfolio—if you choose carefully
A: On a broad level, funds that specialize in small-cap stocks are always more volatile. However, some small caps do offer above-average potential—like those we recommend in Stock Pickers Digest.
Incidentally, we think it’s a mistake to generalize about small cap stocks....
Incidentally, we think it’s a mistake to generalize about small cap stocks....
ISHARES CDN REIT SECTOR INDEX FUND $16.44 (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) holds all 16 Canadian real estate investment trusts in the S&P/TSX REIT Index.
The fund’s MER is 0.61%, and it yields 5.0%.
The ETF’s top ten holdings are RioCan REIT at 18.3%, H&R REIT (14.4%), Canadian A...
The fund’s MER is 0.61%, and it yields 5.0%.
The ETF’s top ten holdings are RioCan REIT at 18.3%, H&R REIT (14.4%), Canadian A...
SPDR S&P CHINA ETF $83.68 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com) tracks the S&P China BMI Index, made up of all publicly traded Chinese stocks available to foreign investors.
Right now, the SPDR S&P China ETF holds 359 stocks....
Right now, the SPDR S&P China ETF holds 359 stocks....
These six ETFs hold mostly blue-chip stocks that are widely traded on Canadian and U.S. exchanges. Each ETF mirrors, or tracks, the performance of a major stock market index. That’s different from narrower indexes that focus on resources or themes such as solar power or biotech.
Of course, you pay brokerage commissions to buy and sell these ETFs....
Of course, you pay brokerage commissions to buy and sell these ETFs....
GUGGENHEIM CHINA SMALL CAP ETF $25.26 (New York Exchange symbol HAO; buy or sell through brokers; www.guggenheimfunds.com) aims to track the AlphaShares China Small Cap Index. It’s made up of the 335 Chinese stocks that foreign investors are allowed to hold and that have market caps between $200 million and $1.5 billion....