Natural Resources exchange traded funds

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Country ETFs that double as natural resources funds

Continuing with our tour of exchange traded funds -today we are talking about natural resources and countries that have a lot of them.
There are 6 exchange traded funds that are a perfect fit for the natural resources play:
Australia - pretty much any natural resource except oi;
Canada - gold, oil, palladium , natural gas - Canada has it all
South Africa - gold, gold, gold
Chile - Copper
Gold
Silver

Australia - EWA 

Australia is a country rich in natural resource,
and it happens to be in close proximity to China - which currently is eager to purchase pretty much everything. In addition, a week dollar makes value of the natural resources go up. As a result, Australian etfs are have done very well.
You can play Australia card in two ways:
you buy Australian dollar etf - ticker symbol FXA.
It will be strong as long as natural resources remain in high demand, and it pays a hefty 5% diviend ( as of spring 2008)
You can also buy Australia itself - the ticker symbol is EWA - this still gives you an exposure to Australian dollar, whie simultaneously giving you direct exposure to companies that extract and trade natural resources.

Canada - EWC 

Canada is another country rich in natural resources, including natural gas, oil, and gold.
And it happens to be in close proximity to United States - the largest market for anything and everything. Just like Australia, Canada benefites from a weak US dollar.
Again, you can play the Canada card in two ways:
you buy Canadian dollar etf - ticker symbol FXC.
It will be strong as long as natural resources remain in high demand, and it pays a decent 3.5% diviend (as of spring 2008)
You can also buy Canada itself - the ticker symbol is EWC - this still gives you an exposure to Canadian dollar, whie simultaneously giving you direct exposure to companies that extract and trade natural resources.

South Africa - EZA 

South Africa is the last country on our list.
Known for it's gold and diamond fields, South Africa has plenty of other minrals and metals.
You can invest in South Africa by buying
EZA - South African etf. As of right now (spring 2008) it is down quite a bit - along wiht the rest of the markets, so this may be a good opportunity to take a closer look.

Books about Exchange Traded Funds 

ETF Trading Strategies Revealed (Trade Secrets (Marketplace Books))

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Amazon Price: $15.56 (as of 12/18/2009) Buy Now

Create Your Own ETF Hedge Fund: A Do-It-Yourself ETF Strategy for Private Wealth Management (Wiley Finance)

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Amazon Price: $40.50 (as of 12/18/2009) Buy Now

ETF Strategies and Tactics: Hedge Your Portfolio in a Changing Market

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Amazon Price: $37.77 (as of 12/18/2009) Buy Now

The Exchange-Traded Funds Manual

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Amazon Price: $62.94 (as of 12/18/2009) Buy Now

iMoney: Profitable ETF Strategies for Every Investor

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Amazon Price: $17.15 (as of 12/18/2009) Buy Now

Chile - Copper , Silver and Gold 

Chilean ETF - ECH - is very sensitive to prices of natural resources, in particula copper. A by-product of copper mining is silver. Still, the primary price mover will be the price of copper.

If you want to play the silver game - you can buy SLV - this is a fund that aims to mimic the price of silver. Basically 1 share is supposed to cost the same as 1 oz of silver.

If gold is your thing - try GLD - the price of 1 share is roughly 1/10 the price of 1 oz of gold.
Both SLV and GLD are supposed to hold at least part of their assets in the actual metal. But they also are allowed to hold futures contracts, and possibly lease the metal as well - so while the price is supposed to approximate that of the metal, they do not guarantee to hold 100% of the metal itself.

Gold and Silver investing 

Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future

Amazon Price: $11.55 (as of 12/18/2009) Buy Now

Gold: The Once and Future Money

Amazon Price: $18.45 (as of 12/18/2009) Buy Now

Get the Skinny on Silver Investing

Amazon Price: $9.95 (as of 12/18/2009) Buy Now

Investing for the long run 

Safe Strategies for Financial Freedom

Amazon Price: $17.79 (as of 12/18/2009) Buy Now

The Intelligent Investor: The Classic Text on Value Investing

Amazon Price: $19.79 (as of 12/18/2009) Buy Now

The Interpretation of Financial Statements

Amazon Price: $20.45 (as of 12/18/2009) Buy Now

Reminiscences of a Stock Operator (Wiley Investment Classics)

Amazon Price: $13.57 (as of 12/18/2009) Buy Now

Sites to visit: 

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