Topic: How To Invest

BANK OF NOVA SCOTIA $66.60 – Toronto symbol BNS

BANK OF NOVA SCOTIA $66.60 (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $80.1 billion; TSINetwork Rating: Above Average; Dividend yield: 3.8%, www.scotiabank.com) has formally changed the name of its ING Direct subsidiary to Tangerine (www.tangerine.ca).

The bank bought ING Direct from its Netherlands-based parent, ING Group, in November 2012. This business provides no-fee banking services to 1.9 million clients, mainly over the Internet. The new name will let Bank of Nova Scotia keep using the orange colour associated with the ING Direct brand.

Tangerine will continue to operate separately from the bank’s retail banking operations. However, Bank of Nova Scotia will let Tangerine customers use its ATMs without paying fees.

Bank of Nova Scotia is our #1 safety-conscious buy for 2014.

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ISHARES AUSTRALIA INDEX FUND $26.45 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 72 largest Australian stocks. Its MER is 0.48%.

The fund’s top holdings include Commonwealth Bank of Australia, 11.1%; BHP Billiton, 10.5%; Westpac Banking Corp., 9.6%; Australia and New Zealand Banking Group, 8.3%; National Australia Bank, 7.3%; Wesfarmers, 4.3%; Woolworths, 4.2%; CSL Ltd., 2.9%; Rio Tinto, 2.3%; Woodside Petroleum, 2.3%; Telstra Group, 1.9%, Westfield Group, 1.9%; and Macquarie Group, 1.4%.

Australia benefits from its stable banking and political systems. It is also rich in natural resources, and close to key Asian markets with vast potential, including India and China.

iShares MSCI Australia Index Fund is a buy.

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