ishares



iShares recently published its future megatrends report and launched two new ETFs aimed at capitalizing on them. Here’s your quick look at both of iShares’ new funds. Each one is a buy, but only for aggressive investors willing to bet on the broad unfolding of these industry-disrupting trends.


BlackRock’s iShares recently introduced its new megatrend investing outlook, which includes a line of exchange-traded funds aimed at profiting from structural shifts influencing the global economy and society, generally.


The five megatrends identified are technological breakthroughs, emerging global wealth and shifting economic power, climate change and resource scarcity, demographics and social change, and rapid urbanization.


To profit from these trends, BlackRock introduced two new ETFs:


ISHARES CYBERSECURITY & TECH ETF $25.13 (New York symbol IHAK) invests in companies involved in cyber security and technology, including cyber security hardware, software, products, and services....

The Italian economy ranks among the biggest in the world but has offered investors very little growth for the past decade. High unemployment—especially among the country’s youth—as well as regional income disparities and high government debt are key problems.


Still the country is home to some exceptional companies, such as Ferrari (see page 106), that flourish despite the difficult overall economic situation.


Here is one ETF buy that provides you with exposure to the top public companies in Italy.


ISHARES MSCI ITALY ETF $26.98 (New York symbol EWI; TSI Network ETF Rating: Aggressive; Market cap: $233.4 million) offers investors exposure to Italy’s top publicly listed companies.



Financial firms account for 24.5% of its assets, while Utilities (21.2%), Energy (17.2%), Consumer Cyclicals (15.0%), Industrials (14.3%) and Telecommunications (3.5%) are other key segments.


The ETF holds a portfolio of 24 stocks; the top 10 make up a high 70% of its assets.


Those top stocks include Enel SpA (utilities; 18.1%), Eni SpA (energy, 11.3%), Intesa Sanpaolo (financials, 10.1%), UniCredit (financials, 6.5%), Assicurazioni Generali (financials, 4.6%), Fiat Chrysler Automobiles (consumer cyclical; 4.2%), Ferrari NV (consumer cyclical, 4.0%), Atlantia (industrials, 3.9%), CNH Industrial (industrials, 3.7%) and Snam SpA (utilities, 3.7%).


The ETF started in 1996 and charges investors a moderate 0.47% MER....

Precious metals should let you profit over the next few years if inflation rises (a clear possibility), and gold, silver and platinum stocks attract new investor interest.


What’s more, if the world economy, particularly emerging economies, continues to expand, consumer gold purchases will rise as well....
A: TransAlta Renewables, $13.83, symbol RNW on Toronto (Shares outstanding: 264.3 million; Market cap: $3.7 billion; www.transaltarenewables.com), is one of the largest generators of wind power in Canada and is among the country’s largest publicly traded renewable power companies.

TransAlta Renewables owns 21 wind farms, 13 hydroelectric facilities, seven natural gas generation plants, one solar facility and one natural gas pipeline....
A: Power Financial, $29.30, symbol PWF on Toronto (Shares outstanding: 664.1 million; Market cap: $19.8 billion; www.powerfinancial.com), holds majority interests in Great-West Lifeco, symbol GWO on Toronto, and IGM Financial, symbol IGM on Toronto.

We currently see Great-West as a hold and IGM Financial as a buy....
A: When a company splits its shares, it is simply cutting itself up into a different number of pieces, without changing its fundamental value. It simply wants its stock to trade in a price-per-share range that seems reasonable to investors.

Mechanics of a split: If a stock’s price rises much beyond $50 a share in Canada (or $100 a share in the U.S.), some investors may shun it since it seems expensive....
A: Medical Facilities Corp., $7.38, symbol DR on Toronto (Shares outstanding: 31.1 million; Market cap: $251.3 million, www.medicalfacilitiescorp.ca), owns majority interest in five specialty surgical hospitals in South Dakota, Indiana, Oklahoma and Arkansas....
A: NFI Group Inc., $27.32, symbol NFI on Toronto (Shares outstanding: 60.8 million; Market cap: $1.7 billion; www.newflyer.com), is a leading transit bus maker in the U.S., Canada and globally....
The six ETFs we update below mainly hold high-quality stocks that are widely traded on Canadian and U.S. exchanges. Each fund tracks the performance of a major stock market index. That’s different from ETFs focused on narrower indexes or themes such as cryptocurrencies or biotechnology.

Of course, you pay brokerage commissions to buy and sell these investments....
A: Fire & Flower Holdings Corp., $1.20, symbol FAF on Toronto (Shares outstanding: 119.3 million; Market cap: $145.2 million; www.fireandflower.com), is a Canadian-based licensed cannabis and accessories retailer in Alberta, Saskatchewan, Manitoba and the Yukon....