Five ETFs for the five main sectors

Article Excerpt

A key rule of our three-part Successful Investor strategy is to spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities). This has two main benefits: a) It keeps you from investing too heavily in any industry or sector that is headed into a period of big losses; and b) By spreading your investments out more widely, it also improves your chances of latching onto a market superstar—a stock that will wind up producing two or five or 10 times more profit than average. ISHARES S&P/TSX GLOBAL BASE METALS ETF $16.86 (Toronto symbol XBM; TSINetwork ETF Rating: Aggressive; Market cap: $230.9 million) tracks the S&P/TSX Global Base Metals Index. Stock weights are based on market value with some adjustments for liquidity. The main exposures are Canada (44%), the U.S. (26%), the U.K. (10%), Australia (10.0%), and Peru (8%). Industry exposure includes Diversified Metals and Mining (50%), Copper…