Index Funds

I have room for $15,000 of tax free investments in my Tax Free Savings Account (TFSA). I've been looking at delving into iShares index funds / ETFs - exchange traded funds. Most of their ETFs seem to be doing well.

The iShares DEX Universe Bond Index Fund (XBB) has increased by about 40% in the past six years. It wasnt' even dented by the recession because it's founded on stable, guaranteed bonds. At around 6.5% returns per year, I believe that's a very good investment. I was planning on filling up 50% of my TFSA with guaranteed income funds such as this.

There are a number of other notable iShares funds that caught my eye. The S&P/TSX SmallCap (XCS) index returned 28% last year. In fact, the top 4 iShares funds in the last year were all based on the S&P and TSX. Rounding out the top 5 was the Canadian Dollar fund (XSU). However, I doubt that the CDN dollar is going to rise much higher than parity, which is where it's at now.

I'm more interested in some of the iShares emerging markets funds. Places like Brazil and the CIVET nations - Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa) are all set to expand in the next decade. I would be interested in investing in some of these markets.

This post has been pretty biased towards iShares, as that has been the focus of my research into investing. However, the five worst iShares funds averaged around 5% returns last year - not bad at all.

I don't have much experience investing, however, so I'd love to hear my readers' opinions on where to invest in 2011.

24 comments:

Anonfourtwenty said...
January 9, 2011 at 2:46 PM

Very informative, thanks for the post.

Major.Mack said...
January 9, 2011 at 2:58 PM

Thanks for the Tips

sildude said...
January 9, 2011 at 3:10 PM

28%? That's respectable. It seems they know what they're doing.

Rawr said...
January 9, 2011 at 3:27 PM

thanks for info

KickenChickenz said...
January 9, 2011 at 3:31 PM

dont know much bout investing man, as far as i know invest in sure things like google and apple?

Copyboy said...
January 9, 2011 at 4:37 PM

I'd say you know way for than me. I'll be looking to you in '11.

Les said...
January 9, 2011 at 4:42 PM

Wow, that went entirely over my head. I think I need to do some research into investing.

Das Auto! said...
January 9, 2011 at 4:48 PM

15 grand? wow, mine only has room for 5. i have a decent amount of money invested in rogers sugar, but i haven't been trading anything lately.

Golden Era said...
January 9, 2011 at 5:28 PM

Looks like you're doing well. I wish i could give you investing tips but that's not up my alley

Horuss said...
January 9, 2011 at 5:31 PM

wish i knew this before

Marduk said...
January 9, 2011 at 5:57 PM

I need to start investing or something.

HSP said...
January 9, 2011 at 6:58 PM

Yeah, I'm with Marduk. Something I need to start doing eventually. Being able to do it all online makes it easier.

Vapor said...
January 9, 2011 at 7:25 PM

If 5% is the worst then it seems like an excellent investment.

mrecan said...
January 9, 2011 at 7:42 PM

i really dont have any experience either, but your ideas seem pretty well

MikeyB said...
January 9, 2011 at 8:09 PM

this is outta my league

Justsayin' said...
January 10, 2011 at 9:08 AM

Thanks for the info

Laughing Vault said...
January 10, 2011 at 9:11 AM

thats useful

MRanthrope said...
January 10, 2011 at 11:32 AM

invest in ME. Donate to my paypal account now and when I take over the world I'll remember your kindness.

SuciƓ Sanchez said...
January 10, 2011 at 12:33 PM

Baked beans and shotgun cartridges will be the only currency after the zombie apocalypse.
(Oh, and real purdy mouths.)

Tsipise said...
January 10, 2011 at 1:03 PM

Invest in gold.

Monster Madness said...
January 10, 2011 at 1:46 PM

That seems like a pretty nice deal! :)

Mr Jack House said...
January 11, 2011 at 3:08 PM

In reverend Cerimon there well appears Following!

Hiphop Rising said...
January 11, 2011 at 4:06 PM

My father is an investor and day trader and I can tell you right now, do NOT invest in metals. If you want to invest in anything physical, invest in commodities.

My personal tip is to invest in green technologies. But that's just me.

Telia Tuli said...
January 11, 2011 at 6:31 PM

I wish i knew more to contribute here.
I just wish i bought into Google back in the day:(

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