It is purely based on where you think it will go in the next while but it could be a good bet. It is risky and only for the riskiest investors. There could be pull backs equal in magnitude to the run ups we have seen. There are not large blocks transacting regularly so it is a home grown retail investor interest. It is definitely a growing industry.
US$ Investments in Telecoms. Today’s telecom is not like your granddaddies telecom. They could then deliver stable dividends and returns. There will be a lot of shifts to that classification. Over the next year there will be a shakeup in how telecom stocks are classified. A lot of social networking companies will come into the space. It is an interesting investment theme but he wants to take a wait and see approach. You will get currency risk in US investment accounts.
Market. Every year he wonders if we will plateau in ETF inflows or will we break records and it looks like we are headed to break records again this year. There are about 640 ETFs in Canada now. There are more to come including actively managed ones. We have a friendlier regulatory environment for actively managed ETFs in Canada. It is more like mutual funds. The Canadian ETF market has more headroom to grow than the US. The whole world comes to the US ETF market to invest. Many Canadian investors have a home bias. Equal weighting is a good way to get a sector weight exposure.