Topic: How To Invest

Hi Pat: Do you recommend the iShares Materials Capped Materials Index Fund? Thank you.

Article Excerpt

iShares Materials Capped Materials Index Fund, $21.19, symbol XMA on Toronto (Shares outstanding: 14.4 million; Market cap: $305.1 million; ca.ishares.com), holds 66 stocks in resource-related fields, such as mining, fertilizer production and forestry. This fund aims to mirror the performance of the S&P/TSX Capped Materials Index, which is made up of the largest resource stocks in Canada. The weight of any one company is capped at 25% of the index’s market capitalization. The fund’s MER is 0.55%. The fund’s top holdings are Potash Corporation of Saskatchewan at 13.5%; Barrick Gold, 13.3%; Goldcorp, 11.2%; Teck Resources, 6.9%; Kinross Gold, 5.1%, Agrium, 3.8%; Silver Wheaton, 3.5%; First Quantum Minerals, 3.3%; Agnico-Eagle Mines, 3.2%; and Yamana Gold, 2.6%. The fund’s industry breakdown is as follows: Metals & mining, 78.1%, Fertilizers, 18.75%; and Paper & forest products, 1.0%. We continue to think most investors are better off investing in individual companies as part of a well-balanced and diversified portfolio, rather than in funds that focus on…