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Best ETF Plays for the G20 Summit

A wide range of country and commodity ETFs is available to investors ahead of the G20 meeting in Toronto.
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NEW YORK (TheStreet) -- With the upcoming G20 summit in Toronto, investors may find it interesting to know that ETFs have advanced to the point that every member of the G20 economic group, except for Argentina and Saudi Arabia, is now represented by a fund.

Many G20 countries even have more than one ETF that provides exposure to their markets.

There are lots of funds covering the United States, but my favorite fund for right now is the

iShares Dow Jones Select Dividend Index Fund

(DVY) - Get Report

.

DVY is a good play for the current volatile market since it accesses large companies that issue stable dividends.

The reason for all the recent volatility is the European Union, which counts as a separate member of the G20, with its own representative.

The

iShares MSCI EMU Index

(EZU) - Get Report

tracks an index of eurozone stocks.

Aggressive investors can also play the EU's economy with a currency bet on the euro against the U.S. dollar by using

CurrencyShares Euro Trust

(FXE) - Get Report

. Investors who want to make the opposite bet can use

ProShares Ultra Short Euro

(EUO) - Get Report

.

In addition to the EU being represented as a bloc, there are also several member states of the EU that are represented individually in the G20.

Some European Union countries have such important economies on a global scale that their individual economic situations can matter almost as much as that of the whole bloc.

For instance, since decisions being made by the finance ministers in Europe and the United States are seen as important for coordinating a continuation of the global economic recovery, markets were recently impacted negatively by disagreements between Germany and the U.S. ahead of the summit.

Despite its economic prowess, Germany is represented in ETF form by only one fund,

iShares MSCI Germany Index Fund

(EWG) - Get Report

.

Other European Union and G20 members that can be invested in with an individual country ETF are Italy, via

iShares MSCI Italy Index Fund

(EWI) - Get Report

and France, by way of

iShares MSCI France Index Fund

(EWQ) - Get Report

.

Move outside the European Union towards the eastern end of the continent, and investors can best gain exposure to G20 members Russia and Turkey with

MarketVectors Russia ETF

(RSX) - Get Report

and

iShares MSCI Turkey Investable Market Index Fund

(TUR) - Get Report

.

Off the western coast of continental Europe and also outside of the euro zone is the United Kingdom, and exposure to the island nation can be found with

iShares MSCI United Kingdom Index Fund

(EWU) - Get Report

.

South of the European continent is Africa and its sole G20 member, South Africa, currently host of the World Cup. Investors can gain access to the country's markets with

iShares MSCI South Africa Index Fund

(EZA) - Get Report

.

The Middle East features one G20 country, Saudi Arabia. And although this country provides much of the oil that runs the world economy, as mentioned above, there is no ETF that provides direct exposure.

PowerShares DB Oil

(DBO) - Get Report

is one ETF that invests in oil futures, however.

Going further east into Asia brings us to India and Indonesia, which can be bet on by using

India Earnings Fund

(EPI) - Get Report

and

TheStreet Recommends

Market Vectors Indonesia

(IDX) - Get Report

.

In the far eastern parts of Asia are the G20 economies of South Korea, Japan, and China. South Korea is represented by EWY, which appears to be regaining some footing after being set back over concerns about rising tensions with the country's northern neighbor.

Investors can gain exposure to China and Japan though with several ETFs, but my favored two are

Claymore/AlphaShares China Small Cap Index ETF

(HAO) - Get Report

and

iShares MSCI Japan Index Fund

(EWJ) - Get Report

. Investors can also play the currency of these two nations with the

WisdomTree Dreyfus Chinese Yuan

(CYB) - Get Report

and

CurrencyShares Japanese Yen

(FXY) - Get Report

.

HAO is the best way to bet on the success of China's economy in the long term since it does not feature many big finance companies that could get hurt rapidly rising property prices cool off in the country. It's a better bet than the much more popular

iShares FTSE/Xinhua China 25

(FXI) - Get Report

.

Tucked away beneath the southeastern edge of Asia is the continent of Oceania and its sole resident, Australia, is represented by

iShares MSCI Australia Index Fund

(EWA) - Get Report

.

Returning once again to the Americas finds four more G20 member states other than the U.S. -- Canada, Argentina, Mexico, and Brazil. Although far from Asia, the economies of the Americas have connections to those just mentioned in Asia.

The Brazil-China connection is particularly strong, and investors should keep this in mind when they consider an investment such as

Brazil Small-Cap ETF

(BRF) - Get Report

, my favorite fund with a focus on the country. A fund more directly impacted is

iShares MSCI Brazil

(EWZ) - Get Report

, with hefty positions in materials and energy firms that export to Asia.

Investors can play Canada and Mexico with

iShares Canada

(EWC) - Get Report

and

iShares Mexico

(EWW) - Get Report

.

Investors can use some or all of the above ETFs to make investments in various G20 countries. Investors can also place a bet against any progress at the G20 summit with gold.

SPDR Gold Shares

(GLD) - Get Report

,

iShares Comex Gold

(IAU) - Get Report

or

ETFS Gold Shares

(SGOL) - Get Report

have been performing well due to investor concern about sovereign debt and government bailouts.

-- Written by Don Dion in Williamstown, Mass.

At the time of publication, Dion Money Management was long CurrencyShares Euro Trust, iShares Comex Gold, iShares MSCI Japan Index Fund, WisdomTree Dreyfus Chinese Yuan, iShares Mexico, iShares Dow Jones Select Dividend Index Fund.

Don Dion is president and founder of

Dion Money Management

, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.