These global ETFs round out your portfolio

Article Excerpt

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 charge you very low management fees yet offer you 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. ISHARES MSCI EMERGING MARKETS ETF, $42.92, is a buy for aggressive investors. The fund (New York symbol EEM; buy or sell through brokers) is designed to track the MSCI Emerging Markets Index; it gives investors access to some of the world’s fastest growing markets. . The ETF’s geographic breakdown is as follows: China, 31.7%; South Korea, 12.2%; Taiwan, 11.8%; India, 8.7%; Brazil, 7.7%; South Africa, 4.8%; Russia, 4.1%; Thailand, 2.7%; Mexico, 2.5%; Saudi Arabia, 2.4%; Indonesia, 2.1%; and Malaysia, 2.0%. Its top stocks are Alibaba Group (China: e-commerce), 4.5%; Taiwan Semiconductor (computer chips), 4.3%; Tencent Holdings (China: Internet), 4.2%;…