ishares

ISHARES CDN SHORT BOND INDEX FUND $29.35 (CWA Rating: Income) (Toronto symbol XSB; buy or sell through a broker) mirrors the performance of the DEX Short-Term Bond Index. This index consists of a wide range of investment-grade federal, provincial, municipal and corporate bonds with between one- and five-year terms to maturity. The fund currently holds 183 bonds with an average term to maturity of 3.01 years. Top issuers include the Government of Canada, Canada Housing Trust and the Province of Ontario. The bonds in the index are 89.7% government and 10.3% corporate. The fund’s MER is 0.25%....

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.90 (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 $8.2-billion fund’s top holdings are China Mobile, 10.1%; China Construction Bank, 9.6%; Industrial & Commercial Bank of China, 8.5%; China Life Insurance, 7.1%; Bank of China, 6.2%; China Merchants Bank, 4.1%; China Petroleum & Chemical, 4.0%; PetroChina, 4.0%; Ping An Insurance Group, 4.0%; and CNOOC Ltd., 3.9%. The fund’s holdings give it the following industry breakdown: Financials (46.8%), Telecommunications (17.8%), Oil and Gas (11.8%), Basic Materials (11.6%), Industrials (8.7%), Utilities (1.8%) and Consumer Services (1.6%)....

We generally advise against investing in bonds right now, because today’s low interest rates make them unattractive. That’s especially so in light of the potential rise in inflation that may follow the heavy deficit spending and rapid expansion of the money supply that is now underway. However, if you need stable income and want to hold bonds, here are two bond funds that have low fees and high-quality holdings. ISHARES CDN SHORT BOND INDEX FUND $29.35 (CWA Rating: Income) (Toronto symbol XSB; buy or sell through a broker) mirrors the performance of the DEX Short-Term Bond Index....

ISHARES DIVIDEND INDEX FUND $18.40 (Toronto symbol XDV; buy or sell through a broker) holds the 30 highest-yielding Canadian stocks based on dividend growth, yield and average payout ratio. The weight of any one stock is limited to 10% of of the fund’s assets. The fund’s MER is 0.50%. iShares Dividend Index Fund has a 3.7% yield. Top holdings are CIBC, 7.3%; Bank of Montreal, 6.3%; Manitoba Tel, 5.7%; National Bank, 5.5%; TD Bank, 5.3%; IGM Financial, 4.5%; Royal Bank, 4.4%; Bank of Nova Scotia, 4.3%; Telus, 4.2%; Sun Life, 3.6%; Power Financial, 3.4%; and TransCanada Corp., 3.4%....

ISHARES CDN REIT SECTOR INDEX FUND $12.03 (Toronto symbol XRE; buy or sell through a broker) holds the 10 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT is limited to 25% of this index’s value. RioCan REIT makes up 23.7% of the iShares CDN REIT’s total value, followed by H&R REIT (15.7%), Canadian REIT (12.0%), Boardwalk REIT (9.9%), Calloway REIT (9.1%), Primaris Retail REIT (6.8%), Canadian Apartment Properties REIT (6.5%), Chartwell Seniors Housing REIT (5.8%), Cominar REIT (5.7%) and Extendicare REIT (4.2%). The fund yields 5.7%. Its expenses are 0.55% of its assets....

Chinese stocks have fallen about 10% since the start of this year, even though China’s economy continues to grow rapidly. Lower U.S. markets are part of the reason for the drop, but investors also worry that the Chinese government may raise interest rates to slow inflation. That could dampen growth. However, the long-term outlook for China, and Chinese stocks, is strong. One of the best ways for investors to tap into that growth is through low-fee exchange-traded funds (ETFs). Here are our two new recommendations in Chinese ETFs. One holds the 25 largest Chinese stocks. The other invests in all of the publicly traded Chinese stocks available to foreign investors....

When you join my Inner Circle service, you get my investing advice on your own personal investment questions, plus you get to see what other Inner Circle members have asked, along with our answers. So you can get a sense of how our service works, and how our investing advice might help your portfolio, I’d like to share two recent member questions about exchange-traded funds (ETFs). Q: Pat, What’s your investing advice on iShares MSCI Brazil Index Fund?...

ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $29.16 (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, 74.6%; Poland, 12.9%; Czech Republic 6.4% and Hungary, 6.1%. iShares MSCI Emerging Markets Eastern Europe Index Fund’s top holdings are Gazprom (Russia: gas utility), 22.4%; Lukoil (Russia: oil and gas), 10.9%; Sberbank (Russia: bank), 7.5%; MMC Norilsk Nickel (Russia: mining), 4.7%; Rosneft Oil (Russia: oil and gas), 4.3%; Mobile TeleSystems (Russia: wireless), 3.9%; CEZ AS (Poland: utility), 3.5%; OTP Bank (Hungary: bank), 3.0%; PKO Bank Polski SA (Poland: bank), 2.9%; and Surgutneftagaz (Russia: oil and gas), 3.7%. The fund’s industry breakdown is as follows: Energy, 49.2%; Banks, 20.4%; Materials, 11.9%; Telecommunication Services, 10.8%; Utilities, 3.5%; Pharmaceuticals, Biotechnology and Life Sciences, 1.9%; Software and Services, 0.5%; Media, 0.5%; Food, Beverages and Tobacco, 0.5%; and Real Estate, 0.5%.The ETF has an expense ratio of 0.72%....

ISHARES MSCI BRAZIL INDEX FUND $77.79 (New York Exchange symbol EWZ; buy or sell through brokers), is an ETF that is designed to track the Brazilian stock market. The fund’s top holdings are Petrobras preferred shares (energy), 12.5%; Petrobras common shares, 10.2%; Cia Vale do Rio Doce (mining) preferred shares, 9.4%; Cia Vale do Rio Doce common shares, 7.0%; Itau Unibanco Multiplo SA (banking), 7.8%; Banco Bradesco preferred shares (banking), 4.7%; Cia de Bebidas das Americas preferred shares (beer and other beverages), 3.2%; Cia Siderurgica Nacional SA (steel), 3.0%; Gerdau SA (steel), 2.4%; and OGX Petroleo e Gas Patricipa (energy), 2.4%. The fund’s industry breakdown is as follows: Materials, 28.5%; Energy, 25.9%; Financials, 19.5%; Consumer Staples, 7.9%; Utilities, 7.0%; Telecommunication Services, 4.0%; Consumer Discretionary, 2.4%; Information Technology, 2.1%; and Industrials, 2.0%. The ETF has an expense ratio of 0.63%....

Investing outside of Canada and the U.S. can expose you to more volatility and risk. That’s why we still think mutual funds are the best way for most investors to access these areas. And you can cut your costs by purchasing high-quality international exchange-traded funds (ETFs) like these two: ISHARES MSCI BRAZIL INDEX FUND $77.79 (New York Exchange symbol EWZ; buy or sell through brokers), is an ETF that is designed to track the Brazilian stock market. The fund’s top holdings are Petrobras preferred shares (energy), 12.5%; Petrobras common shares, 10.2%; Cia Vale do Rio Doce (mining) preferred shares, 9.4%; Cia Vale do Rio Doce common shares, 7.0%; Itau Unibanco Multiplo SA (banking), 7.8%; Banco Bradesco preferred shares (banking), 4.7%; Cia de Bebidas das Americas preferred shares (beer and other beverages), 3.2%; Cia Siderurgica Nacional SA (steel), 3.0%; Gerdau SA (steel), 2.4%; and OGX Petroleo e Gas Patricipa (energy), 2.4%....