ishares
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 $21.48 (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. (conglomerate), 8.6%; Reliance Industries Ltd. (conglomerate), 7.5%; ICICI Bank, 6.9%; HDFC Bank, 6.6%; Infosys Technologies (software), 6.6%; Housing Development Finance, 6.3%; Larsen & Toubro Ltd. (conglomerate), 4.5%; Tata Consultancy Services (information technology), 3.9%; and State Bank of India, 3.3%....
The Bank of Canada is holding interest rates steady, especially with the current inflation rate of 1.5% well below the bank’s 2% target. The bank doesn’t want to slow Canada’s economic growth with higher rates or push the dollar higher. Even so, the long-term outlook is for higher interest rates. The heavy deficit spending and the expansion of the money supply over the past few years increase the potential for higher inflation. We continue to advise against investing in bonds right now. That’s because today’s low interest rates make them unattractive, and rising interest rates would push down their future value. ...
ISHARES AUSTRALIA INDEX FUND $22.18 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 73 largest Australian stocks. Its MER is 0.52%.
The fund’s top holdings include BHP Billiton, 12.2%; Commonwealth Bank of Australia, 10.1%; Westpac Banking Corp., 7.8%; Australia and New Zealand Banking Group, 7.0%; National Australia Bank, 6.4%; Woolworths, 4.0%; Rio Tinto, 3.0%; Westfield Group, 2.5%; and CSL Ltd., 2.5%.
Australia benefits from its stable banking and political systems. It is also rich in natural resources, and it’s close to key Asian markets, including India and China.
...
The fund’s top holdings include BHP Billiton, 12.2%; Commonwealth Bank of Australia, 10.1%; Westpac Banking Corp., 7.8%; Australia and New Zealand Banking Group, 7.0%; National Australia Bank, 6.4%; Woolworths, 4.0%; Rio Tinto, 3.0%; Westfield Group, 2.5%; and CSL Ltd., 2.5%.
Australia benefits from its stable banking and political systems. It is also rich in natural resources, and it’s close to key Asian markets, including India and China.
...
ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $62.32 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index. This index consists of stocks that are mainly traded on the Santiago Stock Exchange.
The fund’s top holdings are LAN Airlines SA (Chilean national airline), 9.4%; Empresas Copec SA (conglomerate), 8.5%; Quimica y Minera de Chile (mining), 8.2%; Empresa Nacional de Electricidad (electric power), 6.8%; Cencosud SA (retailer), 6.5%; Banco Santander Chile (banking), 6.1%; Enersis AS (electric power), 5.9%; Empresas CMPC (pulp and paper), 4.8%; S.A.C.I. Falabella (retail), 4.7%; and CAP SA (iron mining and steel), 4.1%.
The fund’s industry breakdown is as follows: Utilities, 23.7%; Industrials, 21.6%; Financials, 16.9%; Materials, 15.6%; Consumer Staples, 11.1%; Consumer Discretionary, 11.1%; Telecommunications, 3.3%; and Information Technology, 1.5%.
...
The fund’s top holdings are LAN Airlines SA (Chilean national airline), 9.4%; Empresas Copec SA (conglomerate), 8.5%; Quimica y Minera de Chile (mining), 8.2%; Empresa Nacional de Electricidad (electric power), 6.8%; Cencosud SA (retailer), 6.5%; Banco Santander Chile (banking), 6.1%; Enersis AS (electric power), 5.9%; Empresas CMPC (pulp and paper), 4.8%; S.A.C.I. Falabella (retail), 4.7%; and CAP SA (iron mining and steel), 4.1%.
The fund’s industry breakdown is as follows: Utilities, 23.7%; Industrials, 21.6%; Financials, 16.9%; Materials, 15.6%; Consumer Staples, 11.1%; Consumer Discretionary, 11.1%; Telecommunications, 3.3%; and Information Technology, 1.5%.
...
ISHARES MSCI GERMANY FUND $20.18 (New York Exchange symbol EWG; buy or sell through brokers) is an ETF that aims to track 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 Siemens AG (engineering conglomerate), 9.0%; BASF (chemicals), 8.3%; Bayer (diversified chemicals), 7.5%; SAP (software), 7.1%; Allianz (insurance), 5.7%; E.ON (energy), 4.7%; Deutsche Bank AG, 4.4%; Deutsche Telekom, 4.0%; and Linde AG (industrial gases), 3.5%.
...
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 Siemens AG (engineering conglomerate), 9.0%; BASF (chemicals), 8.3%; Bayer (diversified chemicals), 7.5%; SAP (software), 7.1%; Allianz (insurance), 5.7%; E.ON (energy), 4.7%; Deutsche Bank AG, 4.4%; Deutsche Telekom, 4.0%; and Linde AG (industrial gases), 3.5%.
...
ISHARES MSCI SOUTH KOREA INDEX FUND $55.36 (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, 20.9%; Hyundai Motor Co., 6.5%; Posco (steel), 4.2%; Kia Motors, 3.5%; Hyundai Mobis (auto parts), 3.4%; Shinhan Financial, 2.9%; KB Financial, 2.4%; LG Chemical, 2.3%; Hynix Semiconductor, 2.3%; and Hyundai Heavy Industries, 1.9%.
The fund’s industry breakdown is as follows: Information Technology, 30.7%; Consumer Discretionary, 18.9%; Industrials, 13.9%; Financials, 13.6%; Materials, 11.5%; Consumer Staples, 5.6%; Energy, 2.7%; Utilities, 1.4%; Health Care, 0.8%; and Telecommunication Services, 0.7%.
...
The ETF’s top holdings are Samsung Electronics, 20.9%; Hyundai Motor Co., 6.5%; Posco (steel), 4.2%; Kia Motors, 3.5%; Hyundai Mobis (auto parts), 3.4%; Shinhan Financial, 2.9%; KB Financial, 2.4%; LG Chemical, 2.3%; Hynix Semiconductor, 2.3%; and Hyundai Heavy Industries, 1.9%.
The fund’s industry breakdown is as follows: Information Technology, 30.7%; Consumer Discretionary, 18.9%; Industrials, 13.9%; Financials, 13.6%; Materials, 11.5%; Consumer Staples, 5.6%; Energy, 2.7%; Utilities, 1.4%; Health Care, 0.8%; and Telecommunication Services, 0.7%.
...
ISHARES MSCI EMERGING MARKETS INDEX FUND $39.91 (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, 17.4%; South Korea, 15.2%; Brazil, 13.2%; Taiwan, 11.0%; South Africa, 8.0%; India, 6.2%; Russia, 5.8%; Mexico, 4.7%; Malaysia, 3.7%; and Indonesia, 2.7%.
The fund’s top holdings are Samsung Electronics (South Korea: electronics), 3.5%; China Mobile, 1.9%; Taiwan Semiconductor (Taiwan: computer chips), 1.8%; America Movil (Brazil: wireless), 1.6%; Gazprom (Russia: gas utility), 1.5%; China Construction Bank (China: banking), 1.4%; Petrobras Petroleo (Brazil: energy), 1.2%; Vale SA (Brazil: mining), 1.1%; and Industrial & Commercial Bank of China, 1.2%.
The fund’s industry breakdown is as follows: Financials, 24.1%; Information Technology, 13.7%; Energy, 12.7%; Materials, 12.1%; Consumer Staples, 8.5%; Consumer Discretionary, 8.1%; Telecommunication Services, 8.1%; Industrials, 6.9%; Utilities, 3.8%; and Health Care, 1.1%.
...
The fund’s top holdings are Samsung Electronics (South Korea: electronics), 3.5%; China Mobile, 1.9%; Taiwan Semiconductor (Taiwan: computer chips), 1.8%; America Movil (Brazil: wireless), 1.6%; Gazprom (Russia: gas utility), 1.5%; China Construction Bank (China: banking), 1.4%; Petrobras Petroleo (Brazil: energy), 1.2%; Vale SA (Brazil: mining), 1.1%; and Industrial & Commercial Bank of China, 1.2%.
The fund’s industry breakdown is as follows: Financials, 24.1%; Information Technology, 13.7%; Energy, 12.7%; Materials, 12.1%; Consumer Staples, 8.5%; Consumer Discretionary, 8.1%; Telecommunication Services, 8.1%; Industrials, 6.9%; Utilities, 3.8%; and Health Care, 1.1%.
...
ISHARES MSCI JAPAN INDEX FUND $9.50 (American 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 fund’s top holdings include Toyota Motor, 5.2%; Mitsubishi UFJ Financial, 2.8%; Honda Motor, 2.7%; Canon, 2.2%; Sumitomo Mitsui Financial, 2.1%; Mizuho Financial Group, 1.8%; Takeda Pharmaceutical, 1.7%; Softbank Corp., 1.5%; Fanuc Corp., 1.5%; and Mitsubishi Corporation, 1.5%.
The fund’s industry breakdown is as follows: Industrials, 20.4%; Consumer Discretionary, 19.9%; Financials, 17.4%; Information Technology, 11.9%; Materials, 6.7%; Health Care, 6.7%; Consumer Staples, 6.6%; Telecommunication Services, 4.4%; Utilities, 3.6%; and Energy, 1.6%.
...
The fund’s top holdings include Toyota Motor, 5.2%; Mitsubishi UFJ Financial, 2.8%; Honda Motor, 2.7%; Canon, 2.2%; Sumitomo Mitsui Financial, 2.1%; Mizuho Financial Group, 1.8%; Takeda Pharmaceutical, 1.7%; Softbank Corp., 1.5%; Fanuc Corp., 1.5%; and Mitsubishi Corporation, 1.5%.
The fund’s industry breakdown is as follows: Industrials, 20.4%; Consumer Discretionary, 19.9%; Financials, 17.4%; Information Technology, 11.9%; Materials, 6.7%; Health Care, 6.7%; Consumer Staples, 6.6%; Telecommunication Services, 4.4%; Utilities, 3.6%; and Energy, 1.6%.
...
We think conservative investors could hold up to, say, 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. ISHARES MSCI SOUTH KOREA INDEX FUND (New York Exchange symbol EWY; buy or sell through brokers), is an exchange traded fund that aims to track the MSCI Korea Index....
We think conservative investors could hold up to, say, 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 highquality stocks. Here are six foreign ETFs we like: ...