etf

ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $32.44 (New York Exchange symbol ESR; buy or sell through brokers), is an ETF that aims to track the MSCI Emerging Markets Eastern Europe Index. The fund’s geographic breakdown is as follows: Russia, 70.6%; Poland, 18.2%; Hungary, 5.1%; and Czech Republic 4.8%. iShares MSCI Emerging Markets Eastern Europe’s top holdings are Gazprom (Russia: gas utility), 19.5%; Sberbank (Russia: bank), 9.5%; Lukoil (Russia: oil), 8.9%; MMC Norilsk Nickel (Russia: mining), 5.4%; Mobile TeleSystems (Russia: wireless), 3.9%; Rosneft Oil (Russia: oil), 3.5%; Novatek (Russia: natural gas), 3.2%; PKO Bank Polski SA (Poland: bank), 3.0%; Magnit (Russia: retailing), 2.8%; and Surgutneftegas (Russia: oil & gas), 2.8%....

Exports to the U.S., Europe and other developed nations remain a strong source of growth for emerging economies. As well, rising domestic demand is increasingly supporting those economies, and letting them grow strongly. Now, the challenge for many emerging nations is to maintain their rapid growth while keeping inflation and rising currencies in check. That could entail slowly raising interest rates or restricting inflows of foreign capital. Even so, high-quality companies based in these countries should continue to gain from their strong economic growth. One of the best safe-money ways to invest in emerging markets is through exchange-traded funds (ETFs). You’ll need to be selective, but the best ETFs offer a great combination of low fees and top-quality stocks....

So far this year, gold is down 3.5% from $1,421 U.S. an ounce at the end of 2010. But at $1,371, it’s still up 25% from a year ago. Silver is down 4.7%, to $29.27. But that’s still up 68% from a year ago. Gold and silver could well move higher over the longer term, although they will likely remain volatile. Higher prices would arise from investor fears that continued low interest rates and governments injecting money into their economies will spur inflation or weaken their currencies. If you want to hold a number of gold or silver stocks, these two exchange-traded funds offer top-quality global miners and low fees....

ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $77.20 (New York Exchange symbol ECH; buy or sell through brokers), is an ETF that aims to track the MSCI Chile Investable Market Index. This index consists of stocks that are mainly traded on the Santiago Stock Exchange. The fund’s top holdings are Empresas Copec SA (conglomerate), 12.4%; Cencosud SA (retailer), 10.2%; Empresas CMPC (pulp and paper), 8.7%; Enersis AS (electric power), 8.5%; Empresa Nacional de Electricidad (electric power), 8.2%; CAP SA (iron-ore mining and steel), 5.6%; Quimiday Minera de Chile (mining), 5.3%; Lan Airlines SA (Chilean national airline), 5.1%; Banco Santander Chile (banking), 4.8%; and S.A.C.I. Falabella (retail), 4.4%. The fund’s industry breakdown is as follows: Utilities, 22.7%; Materials, 20.6%; Industrials, 20.1%; Consumer Staples, 13.9%; Financials, 11.1%; Consumer Discretionary, 8.5%; Telecommunication, 2.4%; and Information Technology, 0.9%. iShares MSCI Chile Investable Market Index Fund was launched on November 12, 2007. The exchange-traded fund has an expense ratio of 0.65%....

ISHARES MSCI GERMANY FUND $23.40 (New York Exchange symbol EWG; buy or sell through brokers) is an ETF that aims to track the stocks in the MSCI Germany Index. This index aims to replicate the performance of 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership. The fund’s top holdings are Siemens AG (engineering conglomerate), 10.3%; BASF (chemicals), 7.3%; Bayer (diversified chemicals), 6.8%; Daimler AG (automobiles), 6.6%; E.ON (energy), 6.2%; Allianz (insurance), 6.2%; Deutsche Bank AG, 6.0%; Deutsche Telekom, 4.7%; SAP (software), 4.5%; and RWE AG (energy and waste disposal), 3.5%....

ISHARES MSCI SOUTH KOREA INDEX FUND $55.63 (New York Exchange symbol EWY; buy or sell through brokers), is an exchange-traded fund that aims to track the MSCI Korea Index. The index aims to capture 85% of the total market capitalization of the South Korean stock market. The other 15% is unavailable for investment, partly due to limitations on foreign ownership. The fund’s top holdings are Samsung Electronics, 15.2%; Posco (steel), 5.6%; Hyundai Motor Co., 4.8%; Hyundai Mobis (auto parts), 3.5%; Shinhan Financial, 3.2%; KB Financial Group, 3.0%; LG Chemical, 3.0%; Hyundai Heavy Industries, 2.6%; Samsung Electronics preferred shares, 2.2%; and Hynix Semiconductor, 2.1%. The fund’s industry breakdown is as follows: Information Technology, 26.3%; Industrials, 16.5%; Financials, 15.6%; Consumer Discretionary, 15.3%; Materials, 14.0%; Consumer Staples, 4.7%; Telecommunication Services, 2.8%; Energy, 2.8%; Utilities, 1.6%; and Health Care, 0.5%....

The quality of exchange-traded funds (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. ETFs offer very low management fees. In addition, the best ETFs offer well-diversified, tax-efficient portfolios of high-quality stocks. Here are five foreign ETFs we like:...

ISHARES AUSTRALIA INDEX FUND $24.17 (New York symbol EWA; buy or sell through brokers), is an ETF that holds the 75 largest Australian stocks. The fund’s top holdings include BHP Billiton, 15.1%; Commonwealth Bank of Australia, 8.1%; Westpac Banking Corp., 7.3%; Australia and New Zealand Banking Group, 6.8%; National Australia Bank, 5.8%; Woolworths, 3.8%; Wesfarmers, 3.6%; Newcrest Mining, 3.3%; and Westfield Group, 2.9%. In addition to stable banking and political systems, as well as high demand for its exports, Australia is close to Asian markets, and is rich in natural resources....

The Claymore BRIC exchange-traded fund (ETF), $33.27, symbol CBQ on Toronto (Shares outstanding: 10.3 million; Market cap: $342.3 million; www.claymoreinvestments.ca), invests in the BNY (Bank of New York) Mellon BRIC Select ADR Index. This index tracks the performance of companies from the so-called “BRIC” countries: Brazil, Russia, India and China. The companies in this index trade on U.S. stock exchanges as American or global depositary receipts. The Claymore BRIC ETF hedges its exposure to U.S. dollars in order to lower the impact of fluctuations in foreign-exchange rates. The fund selects companies using a system, developed by the Bank of New York Mellon, that is based on several factors, including liquidity, share price and market capitalization. Right now, there are about 87 stocks in the fund’s portfolio. Its managers seek to hold the largest companies in the volatile markets in which the fund invests....

SPDR DOW JONES INDUSTRIAL AVERAGE ETF $112.30 (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, Exxon Mobil, Chevron Corp., 3M, Procter & Gamble, McDonald’s Corp., Johnson & Johnson, 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....