etf

The Claymore BRIC exchange-traded fund (ETF), $27.60, symbol CBQ on Toronto (Shares outstanding: 10.9 million; Market cap: $300.5 million), 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 criteria, including liquidity, share price and market capitalization. There are currently about 87 securities in the fund’s portfolio. Its managers seek to hold the largest-capitalization stocks in the volatile markets in which it invests....

GLOBAL X SILVER MINERS ETF $14.40 (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. Global X Silver Miners ETF is a recent new issue: it began trading on April 19, 2010. We generally advise against buying new issues. That’s because they come to market when it’s a good time for the company and its insiders to sell. This may not be, and often isn’t, a good time for you to buy....

VANGUARD GROWTH ETF $52.22 (New York symbol VUG; buy or sell through brokers) aims to track the MSCI U.S. Prime Market Growth Index, a broadly diversified index that mainly consists of stocks of large U.S. companies. The fund has an MER of just 0.14%. The $17.1-billion fund’s top holdings are Microsoft, IBM, Apple Inc., Cisco Systems, Wal-Mart Stores, Google Inc., Hewlett-Packard, Oracle Corp., Philip Morris International and PepsiCo. Vanguard Growth ETF is broken down by economic segment as follows: Information Technologies (35.0%), Health Care (13.3%), Consumer Discretionary (12.8%), Consumer Staples (11.0%), Industrials (8.8%), Energy (7.6%), Financials (6.4%), Materials (4.1%), Telecommunication Services (0.7%) and Utilities (0.3%)....

VANGUARD EMERGING MARKETS ETF $38.85 (New York symbol VWO; buy or sell through brokers) aims to track the MSCI Emerging Markets Index, which is made up of common stocks of companies located in emerging markets around the world. The fund has an MER of 0.27%. The fund’s top holdings are China Mobile (China: wireless), Gazprom (Russia: gas utility), Samsung Electronics (South Korea: electronics), Teva Pharmaceutical Industries, America Movil SAB de CV (Latin America: wireless), Petroleo Brasileiro SA (Brazil: oil and gas), China Construction Bank, Vale SA (Brazil: mining) and Hon Hai Precision Industry Co. (Taiwan: electronics). The $39.2-billion Vanguard Emerging Markets ETF’s largest holdings by country are: China (17.2%), Brazil (16.1%), South Korea (13.5%), Taiwan (10.8%), India (7.9%), South Africa (7.1%), Russia (6.4%), Mexico (4.5%), Malaysia (3.0%), Israel (2.8%), Indonesia (2.1%), Turkey (1.6%), Thailand (1.5%), Chile (1.4%), Poland (1.3%), Hungary (0.6%), Peru (0.5%), Philippines (0.5%), Colombia (0.4%), Czech Republic (0.4%) and Egypt (0.3%)....

Pennsylvania-based Vanguard Group is one of the world’s largest investment-management companies. It 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 that we do see as low-fee buys:...

If you want to invest in gold and silver, we think the best way to do it is through shares of companies that mine gold and silver. Our favourite gold stock is Newmont Mining (see box this page). But if you want to hold a number of gold or silver stocks, the two exchange-traded funds below offer a good combination of top-quality global miners and low fees. ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $22.72 (Toronto symbol XGD; buy or sell through brokers) aims to mirror the performance of the S&P/TSX Global Gold Index. This index is made up of gold stocks from Canada and around the world. The weight of any one company is capped at 25% of the index’s market capitalization. The fund’s MER is 0.55%....

ISHARES DOW JONES CANADA SELECT DIVIDEND INDEX FUND $19.08 (Toronto symbol XDV; buy or sell through a broker) 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%. The fund’s MER is 0.50%. It yields 4.0%. The ETF’s top holdings are CIBC, 7.9%; Bank of Montreal, 7.2%; TD Bank, 5.8%; National Bank, 5.3%; Telus, 4.8%; Manitoba Telecom, 4.8%; Bank of Nova Scotia, 4.5%; Royal Bank, 4.3%; IGM Financial, 4.1%; and Sun Life, 3.4%. The fund holds 61.4% of its assets in financial stocks. Utilities are next at 22.6%. The top Canadian finance stocks offer 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....

Exchange traded funds (ETFs) have gained popularity among investors in recent years, mainly because they offer low management fees. However, you should always keep in mind that not all exchange traded funds are created equal. For example, there are a lot of ETFs that have been created to tap into popular, but risky, themes and fads. So you need to be very selective with your ETF holdings. Exchange traded funds are set up to mirror the performance of a stock-market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. Investors can buy them on margin or sell them short....

iShares S&P/TSX Global Gold Index Fund, $22.72, symbol XGD on Toronto (Shares outstanding: 57.1 million; Market cap: $1.3 billion), aims to replicate the performance of the S&P/TSX Global Gold Index. This index is made up of gold stocks from Canada and around the world. The weight of any one company is capped at 25% of the index’s market capitalization. The fund’s MER is 0.55%. The fund’s top ten holdings are Barrick Gold at 18.2%; Goldcorp., 13.6%; Newmont Mining, 11.5%; AngloGold Ashanti (ADR), 6.3%; Kinross, 5.3%; Agnico-Eagle, 4.1%; Gold Fields (ADR), 3.9%; Eldorado Gold, 3.8%; Lihir Gold (ADR), 3.4%; and Yamana Gold, 3.4%. If you want to own a gold fund, iShares S&P/TSX Global Gold Index Fund is okay to hold....

Investing outside of Canada and the U.S. can expose you to more volatility and risk. The sharp downturn in many foreign markets during the global recession proves this. But there are still countries and regions that offer lots of growth potential and opportunities for diversification. One of the best ways to invest in foreign markets is through exchange-traded funds (ETFs). That’s because directly investing in those markets can be complicated and risky, and high-quality ETFs let you make international investments with greater safety. As well, the best ETFs offer a great combination of low fees and top-quality stocks. Here are four foreign ETFs we like:...