etf

Two international ETFs offers low MERs and exposure to strong foreign markets through tax-efficient, high-quality portfolios.

ISHARES MSCI AUSTRALIA ETF $22.29 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 71 largest Australian stocks. Its MER is 0.48%.

The fund’s top holdings include Commonwealth Bank of Australia, 11.1%; Westpac Banking Corp., 8.4%; BHP Billiton, 7.6%; Australia and New Zealand Banking Group, 7.4%; National Australia Bank, 7.1%; Wesfarmers, 3.9%; CSL Ltd., 3.6%; Woolworths, 2.8%; Woodside Petroleum, 2.2%; Telstra Group, 2.1%; Rio Tinto, 2.0%; Macquarie Group, 1.9%; and Scentre Group, 1.7%.

Australia benefits from its stable banking and political systems and is rich in natural resources. Low commodity prices have hurt its economy, but its proximity to Asian markets with vast potential, including India and China, gives it strong long-term prospects.

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The Global X Social Media ETF offers low-MER, easy access to social media stocks like Yahoo!, but too many are overvalued and speculative.

ISHARES MSCI EMERGING MARKETS INDEX FUND $31.82 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index. The fund’s geographic breakdown includes China, 24.0%; South Korea, 15.3%; Taiwan, 12.8%; India, 8.0%; South Africa, 6.4%; Brazil, 5.7%; Mexico, 4.6%; Russia, 3.7%; Malaysia, 3.5%; Indonesia, 3.0%; Thailand, 2.3%; and Turkey, 1.5%. Its top holdings are Samsung Electronics (South Korea), 3.8%; Taiwan Semiconductor (computer chips), 3.4%; Tencent Holdings (China: Internet), 2.9%; China Mobile, 2.0%; China Construction Bank, 1.5%; Naspers (South Africa: media and Internet), 1.5%; Industrial & Commercial Bank of China, 1.1%; and Hon Hai Precision (Taiwan), 1.0%....

ISHARES MSCI SOUTH KOREA INDEX FUND $48.28 (New York symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index. The ETF’s top holdings are Samsung Electronics, 21.2%; Hyundai Motor, 3.7%; SK Hynix Semiconductor, 2.9%; Hyundai Mobis (auto parts), 2.8%; Shinhan Financial, 2.7%; Naver (Internet), 2.6%; Korea Electric Power, 2.5%; LG Chemicals, 2.3%; Posco (steel), 2.2%; Kia Motors, 2.0%; AmorePacific Corp. (cosmetics), 2.0%; KT&G Corp. (tobacco), 1.9%; KB Financial, 1.9%; and Samsung Fire & Marine Insurance, 1.7%. The iShares MSCI South Korea Index Fund was launched on May 9, 2000. Its expense ratio is 0.64%....

ISHARES MSCI GERMANY FUND $24.22 (New York symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index. This index aims to replicate 85% of the market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership. The ETF’s top holdings are Bayer (diversified chemicals), 8.8%; SAP (software), 7.5%; Siemens (engineering conglomerate), 7.4%; Allianz (insurance), 6.8%; Daimler (automobiles), 7.3%; BASF (chemicals), 6.1%; Deutsche Telekom, 5.4%; Munich Reinsurance, 3.3%; BMW AG, 2.7%; Linde AG (industrial gases), 2.6%; Fresenius (health care), 2.6%; Deutsche Bank AG, 2.4%; and Deutsche Post AG, 2.3%....

ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $34.42 (New York symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that mainly trade on the Santiago Stock Exchange. The fund’s largest holdings are Enersis SA (electricity), 10.3%; Empresa Nacional de Electricidad (electricity), 9.0%; Empresas Copec SA (conglomerate), 7.9%; S.A.C.I. Falabella (retail), 6.5%; Banco Santander Chile (banking), 5.8%; Cencosud SA (retailer), 5.8%; Empresas CMPC (pulp and paper), 4.7%; Colbun SA (utility), 4.6%; and Banco de Chile, 4.3%. The ETF’s industry breakdown consists of Utilities, 31.9%; Financials, 19.5%; Materials, 13.0%; Consumer Staples, 9.7%; Energy, 8.2%; Consumer Discretionary, 8.0%; Industrials, 4.4%; Telecommunication services, 2.5%; and Information Technology, 2.1%....

ISHARES MSCI AUSTRALIA ETF $18.36 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 73 largest Australian stocks. The fund’s top holdings include Commonwealth Bank of Australia, 11.2%; Westpac Banking Corp., 8.8%; National Australia Bank, 6.0%; Australia and New Zealand Banking Group, 6.0%; BHP Billiton, 4.7%; CSL Ltd., 4.4%; Wesfarmers, 4.2%; Woolworths Ltd., 2.6%; Scentre Group, 2.2%; and Transurban Group, 2.1%. The ETF’s industry breakdown consists of Financials, 54.8%; Materials, 12.1%; Consumer Staples, 7.7%; Health Care, 6.5%; Industrials, 6.1%; Energy, 4.7%; Utilities, 2.6%; Consumer Discretionary, 2.4%; and Telecommunications, 2.3%....

ISHARES MSCI BRAZIL INDEX FUND $22.11 (New York symbol EWZ; buy or sell through brokers) is an ETF that’s designed to track the Brazilian stock market. Its top holdings are AmBev SA (beer and beverages), 10.8%; Cia Itau Unibanco Holding (banking), 10.0%; Banco Brandesco SA, 7.1%; Petrobras (oil and gas), 5.3%; BRF SA (food), 4.3%; Cielo SA (payment processing), 3.6%; Ultrapar SA (gas distribution and petrochemicals), 3.1%; and Itausa Investimentos SA (financial services), 2.9%. iShares launched the ETF on July 10, 2000. It has a 0.64% expense ratio....

MARKET VECTORS VIETNAM ETF $14.25 (New York symbol VNM; buy or sell through brokers) holds Vietnamese companies and foreign firms that get a significant amount of their revenue from Vietnam. The ETF’s top holdings are Vincom Corp. (real estate), 7.8%; Bank for Foreign Trade of Vietnam, 7.5%; Masan Group (a food, resources and banking conglomerate), 6.5%; Saigon Thuong Tin Commercial Bank, 6.3%; and Baoviet Holdings (insurance), 6.1%. The ETF cuts risk by investing part of its assets in firms that are based outside of Vietnam but still do business there. That’s a better approach than adding thinly traded or illiquid shares of smaller Vietnamese firms....