Diversification is one of the most important rules of investing. While most investors diversify in terms of asset class by investing in equities, bond and gold, investors should also consider diversifying their equity portfolios further by investing outside their home markets.
Canadian equity investors have several options when it comes to diversifying their portfolio. For passive investors, the best way to diversify is by investing in ETFs tracking global markets. Here are some options investors can consider.
BMO MSCI All Country World High Quality Index (ETF) (TSX: ZGQ)
ZGQ has been designed to replicate the performance of the MSCI All Country World High Quality Index. The fund invests in global equity markets. It focuses on stocks that have high return on equity (ROE), stable year-over-year earnings growth and low financial leverage.
First Asset MSCI World Low Risk Weighted (ETF) (TSX: RWW)
The ETF has been designed to replicate the performance of the MSCI World Risk Weighted Top 200 Index. The fund’s strategy is to invest in and hold the constituent securities of the Index.
iShares MSCI All Country World Minimum Volatility Index (ETF) (TSX: XMW)
The ETF seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets.
