ishares
After a rough final quarter of 2018, most asset classes saw significant gains in the first month of 2019 as investors became less concerned about high stock valuations and the China-U.S. trade dispute. Fears about a rapid rise in U.S. interest rates for 2019 also eased.
The Vanguard Total Bond Index ETF (BND.O) gained 0.8% in January while the Vanguard Total World Stocks ETF (VT) gained 6.6%....
A major change in the Canadian ETF landscape took place in January, with BlackRock Inc. and RBC Global Asset Management joining forces. The #1 and #5 Canadian providers will jointly offer 150 Canadian-listed ETFs under the RBC iShares brand with a combined $60 billion in assets under management....
The health-care industry continues to benefit from the aging populations of most developed markets. While the growing number of elderly continues to spur demand for health-care products and technology, the expanding middle class of developing nations also contributes....
A: iShares MSCI Ireland ETF, $40.52, symbol EIRL on New York (Units outstanding: 1.5 million; Market cap: $60.8 million; www.ishares.com/us), invests in a broad range of Irish stocks. All the companies within the ETF are domiciled or headquartered in the Republic of Ireland as opposed to Northern Ireland, which continues to be a part of the U.K.
The $58.3 million fund started up in May 2010....
The $58.3 million fund started up in May 2010....
ISHARES INDIA 50 ETF $34.35 (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 fund’s top holdings are Reliance Industries (conglomerate), 9.9%; HDFC Bank, 8.2%; Housing Development Finance, 7.5%; Infosys (information technology), 6.4%; ITC (conglomerate), 5.5%; ICICI Bank, 5.3%; Tata Consultancy (information technology), 4.7%; and Kotak Mahindra Bank, 3.9%....
We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through exchange-traded funds (ETFs) with an overseas focus.
The best of those ETFs continue to offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks.
Here’s a look at four international ETFs we see as suitable for new buying and two others we feel you should continue to hold....
A: Real-return bonds pay you a rate of return that’s adjusted for inflation.
Here’s how they work:
When a real-return bond is issued, the level of the consumer price index (CPI) on that date is applied to the bond. After that, both the principal and interest payments are adjusted every six months, upwards or downwards from that base level, to compensate for a rise or fall in the CPI.
Government of Canada real-return bonds pay interest semi-annually, on June 1 and December 1.
Here’s an example:
The Bank of Canada issues $400 million of 30-year bonds maturing on December 1, 2048....
Here’s how they work:
When a real-return bond is issued, the level of the consumer price index (CPI) on that date is applied to the bond. After that, both the principal and interest payments are adjusted every six months, upwards or downwards from that base level, to compensate for a rise or fall in the CPI.
Government of Canada real-return bonds pay interest semi-annually, on June 1 and December 1.
Here’s an example:
The Bank of Canada issues $400 million of 30-year bonds maturing on December 1, 2048....
A: Switzerland has a strong economic system where the country’s revenue exceeds its expenses, so there is no deficit. That improves its self-reliance and the stability of its currency.
The country also has flexible labour markets, high productivity and an emphasis on high-value exports that are not particularly sensitive to price competition....
The country also has flexible labour markets, high productivity and an emphasis on high-value exports that are not particularly sensitive to price competition....
A: Preferred shares behave more like long-term fixed-income instruments rather than short-term instruments. So while short-term interest rates are still relatively low, the outlook for long-term interest rates is less certain.
The underlying credit quality of preferred share issuers can be a negative factor in some cases; for example, when the issuer’s share price is falling.
So unlike GICs, which don’t fall in value, the prices of preferreds can decline along with stock markets.
If you want to own a preferred share as part of the fixed-income segment of your portfolio, and you can accept some risk, then preferreds are okay to hold....
The underlying credit quality of preferred share issuers can be a negative factor in some cases; for example, when the issuer’s share price is falling.
So unlike GICs, which don’t fall in value, the prices of preferreds can decline along with stock markets.
If you want to own a preferred share as part of the fixed-income segment of your portfolio, and you can accept some risk, then preferreds are okay to hold....
A: iShares Canadian Financial Monthly Income ETF, $6.82, symbol FIE on Toronto (Units outstanding: 90.1 million; Market cap: $614.5 million; www.blackrock.com/ca), invests primarily in common shares, preferred shares, corporate bonds and income trusts of firms in the Canadian finance industry.
The fund has an MER of 0.93%, which is high by ETF standards....
The fund has an MER of 0.93%, which is high by ETF standards....