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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VANGUARD FTSE All-World EX-US ETF $41.35 (New York Exchange symbol VEU; buy or sell through brokers) is made up of about 2,200 mostly large- and mid-capitalization stocks in 46 countries, including both developed and emerging markets. However, unlike most international ETFs, the Vanguard FTSE All-World ex-US ETF doesn’t invest in the United States. The ETF’s regional breakdown is as follows: Europe, 45.6%; emerging markets, 24.4%; the Pacific region, 23.7%; and North America (excluding the U.S.), 6.3%. Its expenses are 0.25% of its assets. The fund yields 2.1% We don’t like the Vanguard FTSE All-World ex-US ETF’s focus on Europe. Many of Europe’s major economies still need major structural reforms, including cutting social spending and removing outmoded job-protection laws, plus measures to lower both business and personal tax rates. That dramatically limits their appeal....
Vanguard Total World Stock ETF, $43.25, symbol VT on New York (Shares outstanding: 14.8 million; Market cap: $640.6 million), aims to track the FTSE All-World Index. This index is made up of about 2,800 large- and mid-capitalization stocks of companies that are located in 47 countries, including both developed and emerging markets. The ETF’s stocks are chosen by market size (their market caps must be more than $100 million U.S.) and liquidity. The ETF’s expenses are 0.30% of its assets. It yields 1.5%. Vanguard Total World Stock ETF’s top holdings are Exxon Mobil, Microsoft, Apple, General Electric, Procter & Gamble Co. Nestle SA, Johnson & Johnson, JP Morgan Chase & Co., Bank of America Corp. and BP plc....
In light of recent headlines, it’s not surprising that some investors consider investing in South Korea to be a risky proposition. That’s because the country borders on North Korea, with its nuclear weapons and seemingly unstable leader. Certainly, North Korea’s unpredictability is a continuing drawback to investing in South Korea. However, the North Korean leader’s bluster has so far stopped short of any serious risk to the south. As well, South Korea’s economy, which is Asia’s fourth largest, grew 5.9% in the fourth quarter of 2009. That’s the highest rate since 2007. Moreover, the World Bank’s 2010 ease of doing business survey recently ranked South Korea 19th, just behind Sweden and ahead of Germany and France. (Brazil, by comparison, ranked 129th and India 133rd.)...
Exchange-traded funds (ETFs) have gained popularity in recent years, mainly because many ETFs offer very low management fees. In addition to low fees, the best ETFs offer well-diversified, highly tax-efficient portfolios. However, quality varies. The investment industry has created all sorts of ETFs. 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 five foreign ETFs we like:...
CLAYMORE/ALPHASHARES CHINA SMALL CAP INDEX ETF $28.32 (New York Exchange symbol HAO; buy or sell through brokers) is an ETF that aims to track the AlphaShares China Small Cap Index. This index is made up of all investable Chinese stocks with market caps between $200 million and $1.5 billion. The $373.6-million fund’s top holdings are Air China, 1.9%; Semiconductor Manufacturing, 1.8%; ZTE Corp., 1.8%; China Everbright, 1.7%; Shandong Wiegao Group Medical, 1.6%; PICC Property & Casualty, 1.6%; China Eastern Airlines, 1.5%; Weichai Power Co., 1.5%; Suntech Power Holdings, 1.5%; and China Resources Gas Group, 1.5%. As China’s economy matures, and consumers feel more protected by the expanding social safety net, domestic spending should rise. This fund is well positioned to benefit from that trend....
Every year, you gain an additional $5,000 of contribution room in your tax free savings account (TFSA). That means you have $10,000 of contribution room in 2010, rising to $15,000 in 2011, $20,000 in 2012 and so on. You also get to carry forward unused contribution room from previous years. Tax-free savings accounts let you earn investment income — including interest, dividends and capital gains — tax free. But unlike registered retirement savings plans (RRSPs), contributions to tax free savings accounts are not tax deductible. However, withdrawals from a TFSA are not taxed. Here are three tips you can use to make sure you’re getting the most profit — and tax benefits —from your tax free savings account:...
Members of our Inner Circle service increasingly ask us about investing in exchange traded funds (ETFs). These funds have gained popularity among investors in recent years, mainly because many ETFs offer very low management fees. 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. Exchange traded funds trade on stock exchanges, just like stocks. Investors can buy them on margin or sell them short. We recommend a number of carefully selected exchange-traded funds in our Canadian Wealth Advisor newsletter....
Exchange-traded funds (ETFs) are one of the more benign financial innovations to come along in the past few years. ETFs 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. The best ETFs offer well diversified, tax-efficient portfolios with exceptionally low management fees....
WaterFurnace Renewable Energy, $25.61, symbol WFI on Toronto (Shares outstanding: 12.1 million; Market cap: $309.7 million), has two subsidiaries: WaterFurnace makes and sells geothermal heat pumps, and LoopMaster International installs the geothermal loops that the heat pumps use. WaterFurnace Renewable Energy is registered in Canada, but is based in Indiana. The company was formerly called WFI Industries. A geothermal heat pump captures energy from the earth through a series of pipes, or geothermal loops, buried in the ground. The heat pumps circulate a special fluid through the pipes during the heating mode. Heat energy is then transferred from the ground to the fluid, and then to the geothermal unit located in the home....
Market Vectors Nuclear Energy ETF, $21.63, symbol NLR on New York (Shares outstanding: 7.4 million; Market cap: $159.0 million), aims to track the performance of the DAXglobal Nuclear Energy Index. The index includes 24 companies in the nuclear-energy industry. These firms are located in a number of different countries. To be included in the index, a company must be publicly traded, have a market cap over $150 million U.S. and meet certain minimum trading requirements. The index is divided into seven different areas of the nuclear industry: uranium mining (36.6%), nuclear generation (26.0%), plant infrastructure (22.5%), uranium storage (4.5%), nuclear conglomerates (4.4%), uranium enrichment (3.5%) and nuclear fuel transport (2.5%). The index’s top 10 holdings are Mitsubishi Heavy Industries (8.5%), Constellation Energy Group (8.2%), Electricite de France (7.7%), Exelon Corp. (7.5%), Cameco (7.4%), Uranium One (5.2%), JGC Corp. (4.6%), Paladin Energy (4.3%), Areva SA (4.1%) and Uranium Participation Corp. (4.1%)....