The Easy-As-ABC ETFdb Portfolio is now available to ETFdb Pro members, offering an option for those who wish to construct a portfolio that offers well-rounded exposure to Australia, Brazil, and Canada. This portfolio may appeal to risk-tolerant investors who wish to position themselves favorably across these commodity-rich nations as the global economic recovery picks up and demand for raw materials climbs.
The Easy-As-ABC ETFdb Portfolio is constructed with a regional theme and is designed to offer well-rounded exposure across three of the biggest commodity producing and exporting nations. Investors may wish to overweight exposure to the commodity-centric economies of Australia, Brazil, and Canada as they are well positioned to benefit from rising demand for natural resources from developed and emerging markets alike [also see our Africa-Centric ETFdb Portfolio]. Australia is a major trading partner with China and the U.S., and this wealthy island nation is home to a healthy banking sector and is a top exporter of coal, iron, and gold amongst many other resources. Likewise, Brazil’s economy has seen robust growth over the past few years and the country is a leading producer and exporter of agricultural goods, while Canada is home to a developed economy with some of the richest gold and oil reserves. It’s important to note that the exporting and commodity-centric nature of the countries included in this portfolio may turn away risk-averse investors who are not so bullish on the global economic recovery.
The Easy-As-ABC ETFdb Portfolio offers well diversified exposure across Australian, Brazilian, and Canadian equity markets. One of the core holdings of this portfolio is the Guggenheim ABC High Dividend ETF (ABCS), which selects the highest yielding equities from each of the three nations, providing investors with great potential for capital appreciation as well as a current income stream [see Inflation ETF Special: 25 ETF Ideas To Fight Rising Prices]. This portfolio rounds out exposure to the small cap corner of the Australian, Brazilian, and Canadian equity markets as well, through several tactical holdings that provide more of a “pure play” on the local economy. Another distinguishing feature about the Easy-As-ABC ETFdb Portfolio is that its fixed income component is comprised of two unique funds that round out exposure to the Brazilian and Australian bond markets [see PIMCO Launches Aussie Bond ETF]. This portfolios is not intended as a long-term investment strategy, instead it is meant as a complement to existing portfolios for investors who believe that these commodity producing economies are well positioned to grow in the coming years.
The complete Easy-As-ABC ETFdb Portfolio is available to ETFdb Pro members or with a free 7-day trial to ETFdb Pro. Also check out our new Euro Free Europe Portfolio, as well as our popular Simple (But Effective) Safe Haven Portfolio.
Also included with the ETFdb Pro subscription are more than 25 Model Portfolios, including both retirement-focused and more tactical themed strategies. [To see all that is included, a free sample of the Emerging & Frontier Markets ETFdb Portfolio is available to all ETFdb readers]
Disclosure: No positions at time of writing.