Vendors are cranking out ETFs faster than you can keep up with them. iShares Canada has added the following six ETFs to its existing line up:
- The iShares MSCI Brazil Index Fund (TSX:XBZ) holds the US-listed ETF of the same name (NYSE Arca: EWZ) and tracks the Brazilian stock market. The MER is 0.75%.
- The iShares S&P Latin America 40 Index Fund (TSX: XLA) again holds the US-listed ETF of the same name (NYSE Arca: ILF) and tracks markets in Latin America. The fund has a 61% allocation to Brazil, a 23% allocation to Mexico and 11% allocation to Chile. The MER is 0.65%.
- The iShares S&P CNX Nifty India Index Fund (TSX: XID) holds the US-listed iShares S&P India Nifty 50 Index Fund (NASDAQ: INDY). The Nifty 50 index tracks the performance of stocks listed on India’s National Stock Exchange. The MER is 0.98%.
- The iShares China Index Fund (TSX: XCH) holds the US-listed iShares FTSE / Xinhua China 25 Index Fund (NYSE Arca: FXI). FXI is a popular ETF with investors wanting to add exposure to the Chinese stock market. The MER is 0.85%.
- The other two ETFs introduced by iShares offer currency-neutral exposure to the US fixed income sector. iShares U.S. IG Corporate Bond Index Fund (TSX: XIG) holds the iShares iBoxx $ Investment Grade Corporate Bond Fund (NYSE Arca: LQD) and offers a currency-hedged exposure to US investment grade corporate bonds. The MER is 0.30%.
- The iShares U.S. High Yield Bond Index Fund (TSX: XHY) holds the iShares iBoxx $ High Yield Corporate Bond Fund (NYSE Arca: HYG) and offers a currency-hedged exposure to US junk bonds.
It is interesting to note that the new iShares Emerging Market ETFs do not hedge the currency exposure but still charge a 0.10% to 0.15% extra fee simply to hold another US-listed ETF. Assuming an investor wants to add China or India to their portfolio, why wouldn’t they simply buy the US-listed version and save a fraction of the fees?
