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Emerging markets continue to have sound longterm outlooks. A good way to profit from their growth with less risk is through low-fee exchange traded funds (ETFs). Here are two we see as buys.
ISHARES S&P INDIA NIFTY 50 INDEX FUND $23.61 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities.
The fund’s top holdings are ITC Ltd....
ISHARES S&P INDIA NIFTY 50 INDEX FUND $23.61 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities.
The fund’s top holdings are ITC Ltd....
Canada’s inflation rate is just 1.2%, well below the Bank of Canada’s 2% target. That lets the Bank keep interest rates low. This in turn holds down our dollar, which makes our exports cheaper in world markets. That’s good for Canada’s economy.
Even so, the long-term outlook is for higher interest rates....
Even so, the long-term outlook is for higher interest rates....
ISHARES CDN REIT SECTOR INDEX FUND $17.10 (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) holds the 15 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of each REIT is limited to 25% of the ETF’s value.
iShares CDN REIT’s expenses are 0.60% of its assets....
iShares CDN REIT’s expenses are 0.60% of its assets....
ISHARES AUSTRALIA INDEX FUND $26.91 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 71 largest Australian stocks. Its MER is 0.51%.
The fund’s top holdings include BHP Billiton, 11.6%; Commonwealth Bank of Australia, 10.2%; Westpac Banking Corp., 9.0%; Australia and New Zealand Banking Group, 7.5%; National Australia Bank, 6.6%; Woolworths, 4.1%; Wesfarmers, 3.9%; CSL Ltd., 2.9%; Rio Tinto, 2.8%; and Woodside Petroleum, 2.4%.
Australia benefits from its stable banking and political systems. It is also rich in natural resources, and it’s close to key Asian markets with vast potential, including India and China.
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The fund’s top holdings include BHP Billiton, 11.6%; Commonwealth Bank of Australia, 10.2%; Westpac Banking Corp., 9.0%; Australia and New Zealand Banking Group, 7.5%; National Australia Bank, 6.6%; Woolworths, 4.1%; Wesfarmers, 3.9%; CSL Ltd., 2.9%; Rio Tinto, 2.8%; and Woodside Petroleum, 2.4%.
Australia benefits from its stable banking and political systems. It is also rich in natural resources, and it’s close to key Asian markets with vast potential, including India and China.
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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $65.88 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that are mainly traded on the Santiago Stock Exchange.
The fund’s top holdings are Empresas Copec SA (conglomerate), 8.0%; LATAM Airlines SA, 7.2%; Cencosud SA (retailer), 6.4%; Empresa Nacional de Electricidad (electricity), 6.2%; S.A.C.I. Falabella (retail), 5.7%; Quimica y Minera de Chile (mining), 5.4%; Banco Santander Chile (banking), 5.4%; Enersis AS (electricity), 4.8%; and Empresas CMPC (pulp and paper), 4.5%.
The fund’s industry breakdown is: Utilities, 21.6%; Financials, 17.7%; Materials, 13.7%; Consumer Staples, 12.4%; Industrials, 10.7%; Energy, 8.0%; Consumer Discretionary, 7.2%; Telecommunications, 3.1%; and Information Technology, 2.0%.
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The fund’s top holdings are Empresas Copec SA (conglomerate), 8.0%; LATAM Airlines SA, 7.2%; Cencosud SA (retailer), 6.4%; Empresa Nacional de Electricidad (electricity), 6.2%; S.A.C.I. Falabella (retail), 5.7%; Quimica y Minera de Chile (mining), 5.4%; Banco Santander Chile (banking), 5.4%; Enersis AS (electricity), 4.8%; and Empresas CMPC (pulp and paper), 4.5%.
The fund’s industry breakdown is: Utilities, 21.6%; Financials, 17.7%; Materials, 13.7%; Consumer Staples, 12.4%; Industrials, 10.7%; Energy, 8.0%; Consumer Discretionary, 7.2%; Telecommunications, 3.1%; and Information Technology, 2.0%.
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ISHARES MSCI GERMANY FUND $24.74 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.
This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.
The ETF’s top holdings are BASF (chemicals), 9.2%; Siemens (engineering conglomerate), 8.8%; Bayer (diversified chemicals), 8.2%; SAP (software), 7.5%; Allianz (insurance), 6.5%; Daimler (autos), 5.5%; Deutsche Bank, 4.5%; Linde AG (industrial gases), 3.4%; and Volkswagen AG (autos), 3.2%.
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This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.
The ETF’s top holdings are BASF (chemicals), 9.2%; Siemens (engineering conglomerate), 8.8%; Bayer (diversified chemicals), 8.2%; SAP (software), 7.5%; Allianz (insurance), 6.5%; Daimler (autos), 5.5%; Deutsche Bank, 4.5%; Linde AG (industrial gases), 3.4%; and Volkswagen AG (autos), 3.2%.
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ISHARES MSCI SOUTH KOREA INDEX FUND $62.18 (New York Exchange symbol EWY; buy or sell through brokers) is an exchange traded fund that aims to track the MSCI Korea Index.
The ETF’s top holdings are Samsung Electronics, 21.9%; Hyundai Motor Co., 5.3%; Posco (steel), 3.8%; Hyundai Mobis (auto parts), 3.4%; SK Hynix Semiconductor, 2.7%; Shinhan Financial, 2.5%; Kia Motors, 2.4%; KB Financial, 2.3%; LG Chemical, 2.2%; and NHN (Internet content), 1.8%.
The fund’s industry breakdown is as follows: Information Technology, 32.1%; Consumer Discretionary, 17.4%; Financials, 13.6%; Industrials, 13.2%; Materials, 10.5%; Consumer Staples, 5.6%; Energy, 3.2%; Utilities, 1.6%; Telecommunication Services, 1.2%; and Health Care, 0.9%.
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The ETF’s top holdings are Samsung Electronics, 21.9%; Hyundai Motor Co., 5.3%; Posco (steel), 3.8%; Hyundai Mobis (auto parts), 3.4%; SK Hynix Semiconductor, 2.7%; Shinhan Financial, 2.5%; Kia Motors, 2.4%; KB Financial, 2.3%; LG Chemical, 2.2%; and NHN (Internet content), 1.8%.
The fund’s industry breakdown is as follows: Information Technology, 32.1%; Consumer Discretionary, 17.4%; Financials, 13.6%; Industrials, 13.2%; Materials, 10.5%; Consumer Staples, 5.6%; Energy, 3.2%; Utilities, 1.6%; Telecommunication Services, 1.2%; and Health Care, 0.9%.
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ISHARES MSCI EMERGING MARKETS INDEX FUND $43.41 (New York symbol EEM; buy or sell through brokers) is an exchange traded fund that aims to track the MSCI Emerging Markets Index. Its geographic breakdown includes China, 17.6%; South Korea, 15.1%; Brazil, 12.6%; Taiwan, 10.7%; South Africa, 7.3%; India, 6.7%; Russia, 6.1%; Mexico, 5.2%; Malaysia, 3.4%; and Indonesia, 2.9%.
The fund’s top holdings are Samsung Electronics (South Korea), 4.1%; Taiwan Semiconductor (computer chips), 2.3%; China Mobile, 1.8%; China Construction Bank, 1.5%; Gazprom (Russia: gas utility), 1.2%; Industrial & Commercial Bank of China, 1.2%; America Movil (Brazil: wireless), 1.1%; and Itau Unibanco (Brazil: banking), 1.1%.
The fund’s industry breakdown is as follows: Financials, 26.9%; Information Technology, 14.0%; Energy, 12.1%; Materials, 11.2%; Consumer Staples, 9.0%; Consumer Discretionary, 8.0%; Telecommunication Services, 7.4%; and Industrials, 6.5%.
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The fund’s top holdings are Samsung Electronics (South Korea), 4.1%; Taiwan Semiconductor (computer chips), 2.3%; China Mobile, 1.8%; China Construction Bank, 1.5%; Gazprom (Russia: gas utility), 1.2%; Industrial & Commercial Bank of China, 1.2%; America Movil (Brazil: wireless), 1.1%; and Itau Unibanco (Brazil: banking), 1.1%.
The fund’s industry breakdown is as follows: Financials, 26.9%; Information Technology, 14.0%; Energy, 12.1%; Materials, 11.2%; Consumer Staples, 9.0%; Consumer Discretionary, 8.0%; Telecommunication Services, 7.4%; and Industrials, 6.5%.
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ISHARES MSCI JAPAN INDEX FUND $10.17 (New York Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an exchange traded fund that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.
The ETF’s top holdings include Toyota, 6.1%; Mitsubishi UFJ Financial, 3.1%; Honda Motor, 2.7%; Sumitomo Mitsui Financial, 2.4%; Mizuho Financial Group, 2.2%; Canon, 1.8%; Takeda Pharmaceutical, 1.8%; Softbank Corp., 1.5%; Fanuc Corp., 1.3%; and Japan Tobacco Inc., 1.2%.
The fund’s industry breakdown is as follows: Consumer Discretionary, 20.7%; Financials, 20.1%; Industrials, 20.0%; Information Technology, 10.8%; Health Care, 6.9%; Materials, 6.6%; Consumer Staples, 6.3%; Telecommunication Services, 4.4%; Utilities, 2.6%; and Energy, 1.6%.
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The ETF’s top holdings include Toyota, 6.1%; Mitsubishi UFJ Financial, 3.1%; Honda Motor, 2.7%; Sumitomo Mitsui Financial, 2.4%; Mizuho Financial Group, 2.2%; Canon, 1.8%; Takeda Pharmaceutical, 1.8%; Softbank Corp., 1.5%; Fanuc Corp., 1.3%; and Japan Tobacco Inc., 1.2%.
The fund’s industry breakdown is as follows: Consumer Discretionary, 20.7%; Financials, 20.1%; Industrials, 20.0%; Information Technology, 10.8%; Health Care, 6.9%; Materials, 6.6%; Consumer Staples, 6.3%; Telecommunication Services, 4.4%; Utilities, 2.6%; and Energy, 1.6%.
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We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks. ISHARES MSCI SOUTH KOREA INDEX FUND (New York Exchange symbol EWY; buy or sell) is an exchange traded fund that aims to track the MSCI Korea Index....
