Building A Case For ETF Investment In Canada, Brazil, And Australia (EWC, CNDA, EWA, KROO, EWZ, BRAZ, BRF, BRXX)

In this episode of Money and Markets we examine three markets that offer both safety and the potential for high returns: Canada, Australia and Brazil. They’re young, vibrant, commodity-exporting democracies that are perfectly positioned to take advantage of the strong demand for natural resources. Ron Rowland, editor of International ETF Trader, and Bryan Rich, editor of World Currency Options Alert, discuss why relative growth and rising interest rates make these economies, and their currencies, attractive to international investors. You’ll also find out which exchange-traded funds in each of these countries offer the best opportunity to profit from the commodities boom. In addition, Sean Brodrick and Rudy Martin disclose their numerous stock picks in Canada, Australia and Brazil in a lively roundtable discussion.

ETFs discussed in this segment:

Canada:

(LARGE CAP) iShares MSCI Canada Index (NYSE:EWC) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Canadian market, as measured by the MSCI Canada index. The fund normally invests at least 95% of assets in the securities of the underlying index and in ADRs based on the securities in the underlying index. It uses a representative sampling strategy to try to track the index. The index consists of stocks traded primarily on the Toronto Stock Exchange.

(SMALL CAP) IQ Canada Small Cap ETF (NYSE:CNDA) seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the IQ Canada Small Cap Index (the “Underlying Index). The fund employs a passive management or indexing investment approach designed to track the performance of the Underlying Index. The Underlying Index is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the small capitalization sector of publicly traded companies domiciled and primarily listed on an exchange in Canada.

Austraila:

(LARGE CAP) iShares MSCI Australia Index (NYSE:EWA) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Australian market, as measured by the MSCI Australia index. The fund generally invests at least 90% of assets in the securities of the underlying index and in depositary receipts representing securities in the underlying index. It invests at least 80% of assets in the securities of the underlying index or in DRs representing securities in the underlying index. The index consists of stocks traded primarily on the Australian Stock Exchange.

(SMALL CAP) IQ Australia Small Cap ETF (NYSE:KROO) seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the IQ Australia Small Cap Index (the Underlying Index). The fund employs a passive management or indexing investment approach designed to track the performance of the Underlying Index. The Underlying Index is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the small capitalization sector of publicly traded companies domiciled and primarily listed on an exchange in Australia.

Brazil:

(LARGE CAP) iShares MSCI Brazil Index (NYSE:EWZ) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Brazilian market, as measured by the MSCI Brazil index. The fund normally invests at least 95% of assets in the securities of the underlying index and in ADRs based on the securities in the underlying index. It uses a representative sampling strategy to try to track the index. The index consists of stocks traded primarily on the Bolsa de Valores de So Paulo.

(MID CAP) Global X Brazil Mid Cap (NYSE:BRAZ) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Mid Cap index (“Underlying index). The fund normally invests at least 80% of total assets in the securities of the Underlying index and in depositary receipts based on the securities in the Underlying index. It uses a replication strategy. The Underlying index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure the performance of Brazilian mid-market capitalization companies.

(SMALL CAP) Market Vectors Brazil Small-Cap ETF (NYSE:BRF) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Brazil Small-Cap Index. The fund normally invests at least 80% of assets in securities that comprise the Market Vectors Brazil Small-Cap Index. It may also utilize derivative instruments, such as swaps, options, warrants, futures contracts, currency forwards (and convertible securities and structured notes), and participation notes to seek performance that corresponds to the Brazil Small-Cap Index.

(INFRASTRUCTURE) EGS INDXX Brazil Infrastructure (NYSE:BRXX) seeks investment results that generally correspond (before fees and expenses) to the price and yield performance of the INDXX Brazil Infrastructure index (the “underlying index”). The fund invests in equity securities, including shares traded on local exchanges, American Depositary Receipts and Global Depositary Receipts. Normally it invests at least 80% of net assets in infrastructure companies included in the underlying index and generally expects to be substantially invested at such times, with at least 95% of net assets invested in these securities.

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