etf

The German economy grew at an annualized rate of 9% in the second quarter of 2010. Unemployment has dropped for 14 consecutive months, and is now at 7.6%. That’s the lowest since 1992, and about where it was before the recession. The German economy contracted 4.7% in 2009. Germany has the largest economy in Europe, and the world’s fourth largest. It’s the second-biggest global exporter, behind China. German exports, which account for 45% of its economy, have been rising. That has helped Germany rebound while other European countries, such as Ireland, Greece, Spain and Portugal, struggle....

Pennsylvania-based Vanguard Group is one of the world’s largest investment-management companies. The group manages over $1 trillion U.S. in 150 mutual funds. Vanguard, which went into business in 1975, offers low-fee index mutual funds. Generally speaking, Canadians can’t buy units of mutual funds that are registered in the U.S., because they aren’t registered with provincial securities commissions. For that matter, some Canadian funds aren’t available in all provinces. Canadians can, however, buy Vanguard exchange-traded funds (ETFs) that trade on U.S. stock exchanges. We don’t recommend all of Vanguard’s ETFs, but here are two we do see as low-fee buys:...

If you need steady income and want to hold bond funds, we advise you to focus on those with short-term maturity dates (see below for more on bond funds). That’s because bonds with shorter terms face a lower risk from interest-rate increases. You should also avoid funds that take part in any kind of speculative trading.

Low fees, high-quality holdings are pluses for this bond ETF

The iShares DEX Short Term Bond Index Fund (symbol XSB on Toronto) is a bond exchange-traded fund (ETF) that we cover in our Canadian Wealth Advisor newsletter. The fund cuts risk by avoiding speculative trading and emphasizing government bonds.

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Tata Motors (ADR), $24.04, symbol TTM on New York (Shares outstanding: 506.4 million; Market cap: $12.2 billion), designs, makes and sells vehicles, including cars, trucks and buses, mainly in India. It also makes and sells related parts and accessories. Tata is based in Mumbai, India. Tata Motors is part of the Tata Group, one of India’s leading business conglomerates. Tata Group has interests in a number of areas, including steel, software services, hotels, chemicals, insurance and asset management. Tata’s sales have grown along with the Indian economy. In 2003, its revenue was $3.2 billion. By 2006, revenue had more than doubled, to $7.7 billion. Earnings jumped 37.5%, to $1.10 a share from $0.80 a share. Cash flow per share rose 29.6%, to $1.49 from $1.15....

Brazil’s economy is the world’s eighth largest, and the largest in South America. Brazil is also the world’s ninth-largest oil exporter. Brazil’s economy stalled during the financial crisis, as global demand for the country’s commodity-based exports, including oil, slowed. However, it was one of the first emerging markets to begin a recovery, posting positive growth in the second quarter of 2009. The Brazilian economy could grow as much as 5.5% in 2010. To top it off, the country’s exports to fast-growing China have risen sharply. In 2009, China passed the U.S. to become Brazil’s biggest export market, accounting for 12.5% of its total 2009 exports. The U.S. accounted for 10.5%, followed by Argentina (8.4%), the Netherlands (5.4%) and Germany (4.1%)....

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $40.30 (New York Exchange symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange. Some also trade as American Depositary Receipts (ADRs) on the New York exchange. The fund’s top holdings are China Mobile, 10.1%; China Construction Bank, 9.1%; Industrial & Commercial Bank, 7.9%; China Life, 6.3%; Bank of China, 5.8%; Ping An Insurance, 4.6%; China Unicom Hong Kong, 4.3%; CNOOC, 4.3%; China Telecom, 4.2%; and China Merchants Bank, 4.1%. The fund’s holdings give it the following industry breakdown: Financials, 47.1%; Telecommunications, 18.6%; Oil and Gas, 12.3%; Basic Materials, 11.0%; Industrials, 8.0%; Consumer Services, 2.1%; and Utilities, 0.8%. The ETF has an expense ratio of 0.73%. The dividend yield is 2.3%....

ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $26.34 (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, 73.7%; Poland, 14.2%; Czech Republic 5.7%; and Hungary, 4.9%. iShares MSCI Emerging Markets Eastern Europe Index Fund’s top holdings are Gazprom (Russia: gas utility), 19.9%; Lukoil (Russia: oil), 9.8%; Sberbank (Russia: bank), 8.8%; MMC Norilsk Nickel (Russia: mining), 4.7%; Mobile TeleSystems (Russia: wireless), 4.4%; Rosneft Oil (Russia: oil), 3.7%; Surgutneftegas (Russia: oil and gas), 3.2%; CEZ AS (Poland: utility), 2.9%; PKO Bank Polski SA (Poland: bank), 3.0%; and Tatnef (Russia: oil), 2.9%....

ISHARES MSCI BRAZIL INDEX FUND $70.55 (New York Exchange symbol EWZ; buy or sell through brokers), is an exchange-traded fund that is designed to track the Brazilian stock market. The fund’s top holdings are Petrobras preferred shares (energy), 9.4%; Cia Vale do Rio Doce (mining) preferred shares, 9.3%; Itau Unibanco Multiplo SA (banking), 9.0%; Petrobras common shares, 7.9%; Cia Vale do Rio Doce common shares, 6.8%; Banco Bradesco preferred shares (banking), 5.2%; Itausa-Investimentos Itau (conglomerate), 3.4%; Cia de Bebidas das Americas preferred shares (beer and other beverages), 3.1%; BM&F Bovespa SA (Brazilian stock exchange), 2.7%; and OGX Petroleo e Gas Patricipa (energy), 2.6%. The ETF’s industry breakdown is as follows: Materials, 26.2%; Financials, 25.1%; Energy, 20.6%; Consumer Staples, 8.8%; Utilities, 5.6%; Consumer Discretionary, 5.3%; Industrials, 3.3%; Telecommunication Services, 2.8%; and Information Technology, 2.0%. The fund has an expense ratio of 0.65%....

ISHARES S&P INDIA NIFTY 50 INDEX FUND $27.04 (Nasdaq symbol INDY; buy or sell through brokers), is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities on the National Stock Exchange of India. The fund’s top holdings are Reliance Industries (conglomerate), 10.2%; Infosys Technologies (software), 8.3%; ICICI Bank, 6.9%; Larsen & Toubro Ltd. (conglomerate), 6.2%; ITC Ltd. (conglomerate), 5.4%; Housing Development Finance, 5.2%; HDFC Bank, 4.8%; State Bank of India, 4.7%; Oil and Natural Gas Corp., 2.8%; and Tata Consulting Services (information technology), 2.8%. The fund’s industry breakdown includes: Banks, 19.6%; Computers: Software, 13.0%; Refineries, 10.9%; Cigarettes, 5.4%; Finance: Housing, 5.2%; Automobiles, 4.7%; Power, 4.6%; Steel and Steel Products, 4.4%; Oil Exploration and Production, 3.8%; and Electrical Equipment, 3.7%....

GLOBAL X SILVER MINERS ETF $16.20 (New York symbol SIL; buy or sell through brokers) tracks the Solactive Global Silver Miners Index. This index includes between 20 and 40 international companies that mine, refine or explore for silver. Germany-based Structured Solutions AG developed this index....