etf
An ETF (Exchange-Traded Fund) is an investment fund that holds a collection of underlying assets, such as stocks or bonds, in a single pooled vehicle. ETFs allow investors to purchase a variety of different securities at once, providing greater diversification compared to owning individual assets. They are traded on stock exchanges like regular stocks, allowing for intraday trading at market prices. ETFs typically have lower fees than mutual funds and often passively track an index or sector, making them a popular choice for investors seeking a cost-effective way to invest in a diversified portfolio.
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Japan’s reconstruction could prompt a further rise in copper prices. This new FREE report shows you how you can profit with less risk. Copper continues to attract a lot of investor attention. That’s because copper prices recently hit an all-time high of $4.62 U.S. a pound. That’s up sharply from a low of $1.25 U.S. in late 2008. Copper prices fell to around $4.10 U.S. a pound in the wake of the Japanese earthquake and tsunami, but have moved up since then. The dip in copper prices mainly reflects investor fears that copper demand will drop because the disaster has slowed Japanese industrial production. But that’s just temporary. As the reconstruction of Japan gets underway, the need for wiring, piping, and other copper-based products will be great. That could prompt a further rise in copper prices....
Japan’s gross national product (GNP) will fall this year in the wake of the earthquake and tsunami. The disaster is relatively far from Tokyo, Japan’s economic centre. However, it has disrupted the country’s electricity grid, as well as transportation and communications networks. That will hurt most segments of the economy. Japan’s economy was forecast to grow by 1.4% this year, but it will likely contract in the second quarter due to the disaster. That will likely push down Japan’s growth rate to 1% or less for the year....
Exchange-traded funds (ETFs) offer very low management fees. As well, the best ETFs offer well-diversified, tax-efficient portfolios of high-quality stocks. But the quality of ETFs varies widely. All too many exist to tap into popular, but risky, themes and fads. So you need to be highly selective with your ETF holdings. Here are six foreign ETFs we like:...
ISHARES AUSTRALIA INDEX FUND $26.54 (New York symbol EWA; buy or sell through brokers), is an ETF that holds the 74 largest Australian stocks. The fund’s top holdings include BHP Billiton, 15.9%; Commonwealth Bank of Australia, 8.4%; Westpac Banking Corp., 7.2%; Australia and New Zealand Banking Group, 6.3%; National Australia Bank, 5.6%; Rio Tinto, 3.8%; Wesfarmers, 3.4%; Woolworths, 3.4%; Newcrest Mining, 3.0%; and Woodside Petroleum, 2.7%. Australia benefits from its stable banking and political systems. It is also rich in natural resources, and its exports are in high demand in nearby Asian markets....
GLOBAL X COPPER MINERS ETF $19.21 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes between 20 and 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index. Global X Copper Miners ETF came out in April 2010 in response to strong investor interest in copper stocks. Although it’s a recent new issue, Global X Copper Miners ETF holds only well-established copper miners. Canadian-based companies make up 47% of the fund’s holdings. It also includes companies based in the U.S. (9.7%) and Australia (7.9%), Global X Copper Miners ETF’s MER is 0.65%....
With interest rates still near historic lows, borrowing money to invest continues to look like an attractive investment strategy. That’s especially true if you borrow to buy well-established, dividend-paying stocks. For example, you could pick from the 19 companies we recommend in our Canadian Wealth Advisor newsletter’s Safety-Conscious Stock Portfolio. These investments give you regular dividend income and cash flow to pay the interest on your investment loan. (The Safety-Conscious Stock Portfolio is one of three portfolios Canadian Wealth Advisor offers to conservative and income-seeking investors. The other two are the Index Fund and ETF Portfolio and our Safety-Conscious Income Trust Portfolio. We continually monitor and update all three portfolios.)...
ISHARES DOW JONES CANADA SELECT DIVIDEND INDEX FUND $21.65 (Toronto symbol XDV; buy or sell through a broker; ca.ishares.com) holds 30 of the highest-yielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of assets. The fund’s MER is 0.50%. It yields 1.9%. The fund’s top holdings are CIBC, 6.9%; Bonterra Energy Corp., 6.3%; Bank of Montreal, 5.2%; National Bank, 5.0%; TD Bank, 5.0%; AG Growth International, 4.9%; IGM Financial, 4.2%; Telus, 4.1%; Royal Bank, 4.0%; Bank of Nova Scotia, 3.9%; BCE, 3.5%; and TMX Group, 3.4%. The fund holds 52.9% of its assets in financial stocks. Utilities are next, at 22.5%. The top Canadian finance stocks have sound prospects. However, if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector....
SPDR S&P 500 ETF $131.21 (New York symbol SPY; buy or sell through brokers; www.spdrs.com) holds the stocks in the S&P 500 Index, which consists of 500 major U.S. stocks that are chosen based on their market cap, liquidity and industry group. The index’s highest-weighted stocks are Exxon-Mobil, Microsoft, Procter & Gamble, Apple, JP Morgan Chase & Co., Johnson & Johnson, IBM, Chevron, General Electric, Wells Fargo & Co. and AT&T. The fund’s expenses are just 0.10% of its assets. If you want exposure to the S&P 500 Index, SPDR...
SPDR DOW JONES INDUSTRIAL AVERAGE ETF $120.45 (New York Exchange symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average. The fund’s top holdings are IBM, ExxonMobil, Chevron Corp., 3M, Procter & Gamble, McDonald’s Corp., Coca Cola, Caterpillar Inc., United Technologies and Boeing Co. The fund’s expenses are about 0.18% of its assets. SPDR Dow Jones ETF is a buy....
POWERSHARES QQQ ETF $57.14 (Nasdaq symbol QQQQ; buy or sell through brokers; www.invescopowershares.com), formerly called Nasdaq 100 Trust Shares, holds the stocks that represent the Nasdaq 100 Index. That index is made up of the 100 largest shares on the Nasdaq exchange, based on market cap. The Nasdaq 100 Index contains firms from a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies. The fund’s expenses are about 0.20% of its assets. The index’s highest-weighted stocks are Apple, Microsoft, Qualcomm, Google, Cisco Systems, Intel, Amazon.com, Oracle Corp., Comcast Corp. and Teva Pharmaceuticals....