ishares
ISHARES MSCI EMERGING MARKETS INDEX FUND $44.33 (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%; Brazil, 15.6%; South Korea, 14.7%; Taiwan, 10.7%; South Africa, 7.4%; India, 6.8%; Russia, 6.5%; Mexico, 4.4%; Malaysia, 3.3%; and Indonesia, 2.6%.
iShares MSCI Emerging Markets Index Fund’s top holdings are Samsung Electronics (South Korea: electronics), 3.2%; Gazprom (Russia: gas utility), 1.8%; China Mobile, 1.7%; Petrobras Petroleo preferred (Brazil: energy), 1.6%; Vale SA (Brazil: mining), 1.3%; Taiwan Semiconductor (Taiwan: computer chips), 1.3%; China Construction Bank (China: banking), 1.3%; America Movil (Brazil: wireless), 1.3%; Itau Unibanco Holding (Brazil: banking), 1.3%; and Industrial & Commercial Bank of China (China: banking), 1.2%.
The fund’s industry breakdown is as follows: Financials, 24.0%; Energy, 14.4%; Materials, 13.4%; Information Technology, 13.3%; Consumer Staples, 7.7%; Consumer Discretionary, 7.7%; Telecommunication Services, 7.6%; Industrials, 7.0%; Utilities, 3.7%; and Health Care, 1.0%.
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iShares MSCI Emerging Markets Index Fund’s top holdings are Samsung Electronics (South Korea: electronics), 3.2%; Gazprom (Russia: gas utility), 1.8%; China Mobile, 1.7%; Petrobras Petroleo preferred (Brazil: energy), 1.6%; Vale SA (Brazil: mining), 1.3%; Taiwan Semiconductor (Taiwan: computer chips), 1.3%; China Construction Bank (China: banking), 1.3%; America Movil (Brazil: wireless), 1.3%; Itau Unibanco Holding (Brazil: banking), 1.3%; and Industrial & Commercial Bank of China (China: banking), 1.2%.
The fund’s industry breakdown is as follows: Financials, 24.0%; Energy, 14.4%; Materials, 13.4%; Information Technology, 13.3%; Consumer Staples, 7.7%; Consumer Discretionary, 7.7%; Telecommunication Services, 7.6%; Industrials, 7.0%; Utilities, 3.7%; and Health Care, 1.0%.
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ISHARES MSCI JAPAN INDEX FUND $9.99 (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, 5.1%; Mitsubishi UFJ Financial, 2.9%; Honda Motor, 2.7%; Canon, 2.2%; Sumitomo Mitsui Financial, 2.1%; Mizuho Financial Group, 1.7%; Takeda Pharmaceutical, 1.6%; Mitsubishi Corporation, 1.5%; Fanuc Corp., 1.5%; and Mitsui & Co., 1.3%.
The fund’s industry breakdown is as follows: Industrials, 21.3%; Consumer Discretionary, 20.0%; Financials, 17.8%; Information Technology, 12.2%; Materials, 7.1%; Health Care, 6.1%; Consumer Staples, 5.9%; Telecommunication Services, 4.1%; Utilities, 3.6%; and Energy, 1.8%.
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The fund’s top holdings include Toyota Motor, 5.1%; Mitsubishi UFJ Financial, 2.9%; Honda Motor, 2.7%; Canon, 2.2%; Sumitomo Mitsui Financial, 2.1%; Mizuho Financial Group, 1.7%; Takeda Pharmaceutical, 1.6%; Mitsubishi Corporation, 1.5%; Fanuc Corp., 1.5%; and Mitsui & Co., 1.3%.
The fund’s industry breakdown is as follows: Industrials, 21.3%; Consumer Discretionary, 20.0%; Financials, 17.8%; Information Technology, 12.2%; Materials, 7.1%; Health Care, 6.1%; Consumer Staples, 5.9%; Telecommunication Services, 4.1%; Utilities, 3.6%; and Energy, 1.8%.
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Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice on a wide range of topics, including the best strategies to use in international stock markets. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away. Today’s tip: “There are 3 convenient ways to invest in foreign growth without getting out of your comfort zone.”...
Exchange-traded funds (ETFs) offer very low management fees. As well, the best ETFs offer well-diversified, tax-efficient portfolios of high-quality stocks. We think conservative investors could hold up to, say, 10% of their portfolios in foreign stocks. You need to be highly selective with your ETF selections, but they’re a great way to hold those stocks. Here are six foreign ETFs we like:...
ISHARES AUSTRALIA INDEX FUND $23.75 (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, 13.7%; Commonwealth Bank of Australia, 9.2%; Westpac Banking Corp., 7.5%; Australia and New Zealand Banking Group, 6.9%; National Australia Bank, 6.1%; Woolworths, 3.6%; Rio Tinto, 3.5%; Wesfarmers, 3.5%; Newcrest Mining, 3.0%; and Woodside Petroleum, 2.8%. Australia benefits from its stable banking and political systems. It is also rich in natural resources, and its exports are in high demand in Asian markets, including India and China....
ISHARES MSCI CANADA INDEX FUND $28.36 (New York symbol EWC; buy or sell through brokers; ca.ishares.com) is like a market cap-based index fund, but its managers try to improve its performance by tinkering with the index fund formula. They do this through their Morgan Stanley Capital International Canada Index. The fund has an MER of 0.52%.
The index’s top holdings are Royal Bank, 6.1%; TD Bank, 5.6%; Bank of Nova Scotia, 4.5%; Suncor Energy, 4.4%; Barrick Gold, 4.0%; Canadian Natural Resources, 3.5%; Potash Corp., 3.3%; Goldcorp, 3.2%; Bank of Montreal, 3.0%; CN Railway, 2.8%; and CIBC, 2.5%.
If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index Fund. You’ll pay about a third of the management fees.
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The index’s top holdings are Royal Bank, 6.1%; TD Bank, 5.6%; Bank of Nova Scotia, 4.5%; Suncor Energy, 4.4%; Barrick Gold, 4.0%; Canadian Natural Resources, 3.5%; Potash Corp., 3.3%; Goldcorp, 3.2%; Bank of Montreal, 3.0%; CN Railway, 2.8%; and CIBC, 2.5%.
If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index Fund. You’ll pay about a third of the management fees.
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ISHARES DOW JONES CANADA SELECT DIVIDEND INDEX FUND $21.01 (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com) holds 30 of the highest-yielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of its assets. The fund’s MER is 0.50%. It yields 3.9%.
The fund’s top holdings are CIBC, 6.6%; National Bank, 5.9%; Bonterra Energy, 5.8%; Bank of Montreal, 5.3%; TD Bank, 5.3%; AG Growth International, 4.7%; Royal Bank of Canada, 4.3%; Telus, 4.1%; and Bank of Nova Scotia, 4.1%.
The fund holds 54.3% of its assets in financial stocks. Utilities are next, at 20.5%. The top Canadian finance stocks have sound prospects. However, if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
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The fund’s top holdings are CIBC, 6.6%; National Bank, 5.9%; Bonterra Energy, 5.8%; Bank of Montreal, 5.3%; TD Bank, 5.3%; AG Growth International, 4.7%; Royal Bank of Canada, 4.3%; Telus, 4.1%; and Bank of Nova Scotia, 4.1%.
The fund holds 54.3% of its assets in financial stocks. Utilities are next, at 20.5%. The top Canadian finance stocks have sound prospects. However, if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
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ISHARES S&P/TSX 60 INDEX FUND $17.91 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good, low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets.
Most of the stocks in the index are high-quality companies. However, as it must ensure that all sectors are represented, the fund holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 6.9%; TD Bank, 6.4%; Bank of Nova Scotia, 5.2%; Suncor Energy, 5.0%; Barrick Gold, 4.5%; Canadian Natural Resources, 4.0%; Potash Corp., 3.7%; Goldcorp, 3.6%; Bank of Montreal, 3.4%; CN Railway, 3.1%; BCE Inc., 2.9%; CIBC, 2.8%; Enbridge, 2.7%; TransCanada Corp., 2.7%; Cenovus Energy, 2.5%; and Manulife Financial, 1.9%.
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Most of the stocks in the index are high-quality companies. However, as it must ensure that all sectors are represented, the fund holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 6.9%; TD Bank, 6.4%; Bank of Nova Scotia, 5.2%; Suncor Energy, 5.0%; Barrick Gold, 4.5%; Canadian Natural Resources, 4.0%; Potash Corp., 3.7%; Goldcorp, 3.6%; Bank of Montreal, 3.4%; CN Railway, 3.1%; BCE Inc., 2.9%; CIBC, 2.8%; Enbridge, 2.7%; TransCanada Corp., 2.7%; Cenovus Energy, 2.5%; and Manulife Financial, 1.9%.
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ISHARES CDN REIT SECTOR INDEX FUND $15.72 (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) holds the 13 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT is limited to 25% of the ETF’s value.
iShares CDN REIT’s expenses are just 0.55% of its assets. The fund yields 4.7%.
As mentioned, RioCan REIT is the fund’s largest holding, at 23.9%, followed by H&R REIT (13.1%), Canadian REIT (8.5%), Calloway REIT (8.2%), Dundee REIT (7.0%), Boardwalk REIT (6.9%), Canadian Apartment Properties REIT (6.5%), Primaris Retail REIT (5.8%), Allied Properties REIT (4.4%), Cominar REIT (4.4%), Chartwell Seniors Housing REIT (4.3%), Artis REIT (4.3%) and Extendicare REIT (2.3%).
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iShares CDN REIT’s expenses are just 0.55% of its assets. The fund yields 4.7%.
As mentioned, RioCan REIT is the fund’s largest holding, at 23.9%, followed by H&R REIT (13.1%), Canadian REIT (8.5%), Calloway REIT (8.2%), Dundee REIT (7.0%), Boardwalk REIT (6.9%), Canadian Apartment Properties REIT (6.5%), Primaris Retail REIT (5.8%), Allied Properties REIT (4.4%), Cominar REIT (4.4%), Chartwell Seniors Housing REIT (4.3%), Artis REIT (4.3%) and Extendicare REIT (2.3%).
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As part of our three-part Successful Investor portfolio management philosophy, we advise you to downplay or avoid stocks that are in the broker/media limelight. That’s because this limelight raises investor expectations. When limelight stocks fail to live up to these heightened expectations, and that often happens, downturns can be brutal. Similar advice applies to types of investments, such as exchange traded funds (ETFs). These investment innovations are in the broker/media limelight right now for all the usual reasons. From the media point of view, ETFs come with a good story: you can save money because they come with much lower fees than conventional mutual funds, plus there’s news to report, since new ETFs are coming out all the time....