NEW YORK ( TheStreet) - Thanks to the introduction of exchange traded funds, investors are now easily able to take a global approach to managing to their investment portfolio.
With products aimed at exposing investors to nearly any nation imaginable, investors can literally have the world at their fingertips, using products to capture the strength of popular developed and emerging nations. Gaining international exposure has become so popular and simple that having some assets invested outside of the U.S. borders has become necessary for any well-balanced ETF portfolio.
With the bevy of global options available and the economic turmoil plaguing many regions of the world, some investors can easily be left overwhelmed when it comes time to pick out promising international plays.
However, gaining international exposure does not require looking halfway around the world. Rather than looking for opportunities in Europe, or Asia, investors can find promising U.S. equity exposure right in our own backyard.Often overlooked amidst all the news focused on economic turmoil facing the E.U. and China, Canada and Mexico are two regions which have managed to avoid negative economic headlines throughout most of 2010. Investors can access these two nations using the iShares MSCI Canada Index Fund (EWC) and iShares MSCI Mexico Index Fund (EWW) respectively. Both EWC and EWW have managed to climb in our long-term momentum rankings, indicating their resilience in light of the ongoing economic storms. EWC and EWW are designed to capture the broad strength of their respective nations. In doing so, the indices underlying both funds are comprised of the largest and most liquid companies hailing from each country. EWC's index is comprised of 99 companies hailing from our northern neighbor. Dominated by firms hailing from the financials, materials, and energy sectors, the fund's top five positions include Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Suncor Energy (SU) and Barrick Gold (ABX). Together, these components account for a quarter of the fund's index. On top of providing investors with exposure to the Canadian economy, the heavy energy and materials exposure that comes with owning EWC also makes this fund a promising play on the ongoing economic recovery. As nations around the globe continue to heal and work towards strength, the demand for energy and resources are likely to increase, aiding companies such as SU, Potash of Saskatchewan (POT) and Canadian Natural Resources (CNQ).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV