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Banks and other financial services firms suffered in early 2020 as the pandemic took hold. But most have since bounced back—and many have hit new highs. Meanwhile, once economic activity returns to normal, the best of these should continue to be strong performers....

All of the major global stock markets fell at the outbreak of COVID-19. But many top markets have since rebounded. We think the outlook remains positive for quality stocks, and one way to profit from that—while cutting your risk—is to invest in top ETFs.


Here’s a look at four international funds that we believe are suitable for your new buying....

The Chinese economy offers investors considerable long-term promise—although it faces challenges in the near term. Foremost among them is that economic activity could slow this year as the Omicron variant forces entire cities to lock down under China’s zero-COVID policy....

ISHARES CANADIAN SELECT DIVIDEND INDEX ETF $31.65 (Toronto symbol XDV) lets you hold 30 of the highest-yielding Canadian stocks. The ETF also considers dividend growth and payout ratios to make its selections.


The weight of any one stock holding is limited to 10% of the fund’s assets....

We still recommend that most Canadians hold the bulk of their portfolios in dividend-paying Canadian stocks, or ETFs that hold those stocks. (And that includes our #1 ETF pick for 2022, see column at right.)


Meanwhile, though, investors could also hold stocks or ETFs in other market segments to add growth and diversification to their portfolios....

ISHARES MSCI TAIWAN INDEX FUND, $66.96, is a buy for aggressive investors. The ETF (New York symbol EWT; buy or sell through brokers) gives you direct exposure to some of the top public companies of this East Asian powerhouse economy.


The fund’s largest holding is Taiwan Semiconductor at 22.5% of assets....

The major Canadian and U.S. stock markets have moved back up since their initial COVID-19 drop. Nonetheless, we think that if you can afford to stay in the market for several years or longer, now is still a good time for new buying. We see ETFs as one way for you to profit from the continuing rise, while at the same time cutting your risk.


The best of these funds offer a diversified group of stocks and charge you low management fees....

ISHARES S&P/TSX REIT INDEX ETF, $19.63, is a hold. The ETF (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) lets investors tap all 19 Canadian real estate investment trusts in the S&P/TSX REIT Index. Investors pay an MER of 0.61%, and the REIT fund gives you a 2.8% yield.


The ETF’s top holdings are Canadian Apart....

The Bank of Canada cut its benchmark interest rate to 0.25% in early 2020. That was to support economic activity after COVID-19 hit. Whether the bank continues to hold that rate steady, cuts it again or, more likely, raises it depends on Canada’s economy and employment levels.


Meanwhile, today’s low interest rates make bonds unattractive....

ISHARES INDIA 50 ETF, $49.62, is a buy. The ETF (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) tracks the Nifty 50 index—the 50 largest, most-liquid Indian securities. It began trading in November 2009.


The top holdings are Reliance Industries (conglomerate), 10.6%; HDFC Bank, 8.8%; Infosys (information technology), 8.5%; ICICI Bank, 6.7%; Housing Development Finance, 6.6%; Tata Consultancy (information tech), 4.9%; Kotak Mahindra Bank, 4.0%; and Larsen & Toubro (conglomerate), 3.8%....