iShares MSCI Emerging Markets (XEC.TO)

He really wants people to look outside of North America. About two thirds of your portfolio should be outside of Canada with a third if that in the US, a third international, and maybe a small sliver in a more aggressive portfolio into emerging markets. This is going to be the area that has the greatest growth. He is using this as a proxy for China, because XSI and some of the other specific Chinese ETF’s are much more expensive.

Emerging Markets. He is going in on this very slowly. The emerging markets index is much cheaper than Canada. It is a bout of growth in emerging markets.

(He’s been telling people for years that they should be buying more emerging markets. Tonight, he is giving 3 different ways to play the same theme.) This has a small-cap bias. The 2 main factors that are the most important to him are value and market capitalization.

Emerging markets have been quite volatile. China is probably the one he would stick with. If you look at that alone, that and Japan is probably your best bet in Asia. Consider China Equity Hedged to Canadian (ZCH-T), iShares Xuinhua China (FXI-N) or Morgan Stanley China A Share (CAF-N). If this one breaks down through the $22.80 level, it will probably come back to around $20.