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 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.
iShares MSCI EMU Index
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
. Investors who want to make the opposite bet can use
ProShares Ultra Short Euro
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
Other European Union and G20 members that can be invested in with an individual country ETF are Italy, via
iShares MSCI Italy Index Fund
and France, by way of
iShares MSCI France Index Fund
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
iShares MSCI Turkey Investable Market Index Fund
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
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
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
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
Market Vectors Indonesia
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
iShares MSCI Japan Index Fund
. Investors can also play the currency of these two nations with the
WisdomTree Dreyfus Chinese Yuan
CurrencyShares Japanese Yen
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
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
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
, my favorite fund with a focus on the country. A fund more directly impacted is
iShares MSCI Brazil
, with hefty positions in materials and energy firms that export to Asia.
Investors can play Canada and Mexico with
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
iShares Comex Gold
ETFS Gold Shares
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
, 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.