Take Advantage Of Chile’s Robust Economy With An ETF

On April 6, 2011, In investment

For the last three decades economists have applauded the policies of Chile. These policies have led to a country showing positive signs in almost all key economic variables. If you want to get in on the fun, the easiest way to invest in the Chilean economy is through a Chile ETF.

Strong Trade And Growth Performance

The virtue of Chile’s economy is primarily the healthy policies encouraging investment, trade and limited government interference. The economic crisis of 2009 did only marginally affect Chile and growth has since been on the rise again, with 2010 showing growth of five percent and 2011 projected to show growth at about eight percent.

Chile has a healthy trade surplus and all indications point towards this continuing. Among the largest markets for Chile is expanding economies such as China and Brazil, so while imports might be on the rise due to economic growth, exports should more than follow along.

Dependence On Copper Exports

When economists voice concerns regarding the Chilean economy, it is usually regarding the dependence on the export of copper and other primary commodities. Efforts, however, has been made to branch out to other industries, as well as increasing funds available to research and education.

Another concern deals with the unemployment rate, which peaked a couple of years ago at 11 percent. It is back at around eight percent, which is a bit high, but hardly unusual in an international perspective.

Stable And Robust

Most economists agree that the overall impression of the Chilean economy is of one that is robust and strong, as well as likely to continue to show high growth rates. This, of course, makes it a sought after country for investors, and you should be able to easily find a Chile ETF, if you have decided to add assets here to your portfolio.

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The Index Funds Advantage

On July 28, 2010, In investment

Warren Buffett has repeatedly mentioned that index funds are the best ways for an individual retail investor to invest long term in the stock market.  He understands that most average Joe investors don’t have the time, resources or aptitude to find value stocks like he can.  So when Buffet is giving investing tips to people, he always recommends index funds.  Here is why.

Index funds are mutual funds that track a particular stock index.  It may be the S&P 500 composite or the Dow Jones Industrial Average.

These are known as passively managed funds.  That means there isn’t a money manager pulling the the strings behind a curtain.  In most cases, it’s a computerized program that is buying and selling based on the index that it is following.

There are several advantages to this.  Firstly, mutual fund managers are notorious for not beating the market or keeping in pace with the market over time.  But if you look historically at indices, they have proven to grow over time.  You may not beat the market, but it is rare that people do anyways.

Secondly, index funds tend to be a lot cheaper because it is passively managed.  Although each fund has it’s own index and it’s own unique investment strategy, it is run by a computer significantly reducing the expense ratio.  That means you pay a very small management fee if at all.  You can get a corresponding ETF, and all you would pay is the trading commission.

The reason Warren Buffett recommends index funds is because they have proven to grow over time.  They track with the overall market, which has historically done well, even though it’s not spectacular.

Also, you as an individual investor don’t have to stock pick.  This makes sensible and good investing accessible to everyone who needs to have a place to put their money to grow.  Even someone who has absolutely no interest in the stock market can grow their portfolio just by investing in an index fund and leaving it there for the long term.

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Steps On How You Can Purchase Copper ETF

On July 16, 2010, In Trading

Copper is one of the most useful industrial materials nowadays. It is of great use in electrical wirings as it is an excellent conductor of electricity. It can also be manufactured to be highly pure as it corrodes at a very slow rate and can be shaped easily into wires. This element is also an important component of many useful alloys, which are combinations of different metals that are melted together. Because of its numerous uses, copper has been utilized as a barometer for economic activity. Copper ETF (Exchange Trade Fund) is much like trade stocks however, they are actually shares of an investment fund that takes hold of copper future contracts.

In here we shall discuss the process on how you can make easy profit for yourself by learning the step by step process of how to purchase copper ETFs for your own benefit. The first step would basically involve using the principle of pure play. The genuine copper pure play is UBS’ iPath copper fund and is traded under the ticker JJC. This fund is intended to imitate the Dow Jones-AIG Copper Total Return Sub-Index by making use of high-grade copper futures contracts. JJC trades on the New York COMEX or Commodities Exchange. Step 2 would be to purchase other exposed exchange trade funds, which can be a maximum of 2 that afford exposure to the price of copper. This will serve as an addition to the pure copper ETF. PowerShares’ DB Base Metals, which is traded as DBB, is 1/3 copper. The remaining 2/3 is then evenly divided between aluminum and zinc. After this, you need to watch over inventories as to the reason that any type of commodity when increased in supply as relative to demand, typically comes up with lower prices. Copper inventories are shown weekly and you can inquire these from Shanghai Futures Exchange. Lastly, you need to monitor closely the Chinese economy since China is the biggest consumer of copper because of its fast-growing economy.

Learn about commodity index funds as well at CopperETF.org.

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