ETF looks north of the border

For those seeking some international exposure, but also concerned about investing outside the US,  Leonard Goodall suggests iShares MSCI Canada (ASE: EWC) in No-Load Portfolios.

"We know many investors who are hesitant to invest in securities of other countries. This 'domestic bias' may be injurious to their financial health, especially if the dollar suffers a long-term decline and the US economy remains sluggish over many years.

"One rather easy entry point that can be acceptable to all but the most foreign-phobic is to invest in securities of our neighbor to the north: Canada.

"While it's true that our economies are very much dependent upon one another, the Canadian economy has its own strengths that point to a measure of long-term independence and success.

"Canada has a breadth of resources that are the envy of most countries. Oil, lumber, water, hydroelectric power and precious metals provide the country with self-sufficient long-term wealth and an underpinning to its currency.

"Moreover, the country doesn't have anywhere near the magnitude of security problems that are faced by the US. On a shorter-term basis, Canadian banks have not required bailout money and are regarded as among the best in the world.

"Of course, all isn't perfect in Canada and it is unlikely that its economy will regain strong growth until the US turns around.

"Moreover, one never knows what the negative consquences might be to possible future well-meaning Canadian government policies.

"Considering everything, the iShares MSCI Canada Index Fund is worthy of consideration for US investors seeking lon-term foreign diversification."

Editor's note: For more on Leonard Goodall's advisory service, contact No-Load Portfolios, 8635 W. Sahara #120, The Lakes, NV 89117
 

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