Our dollar has strengthened considerably over the past two years, hitting 0.85USD recently. Even though the C$ might strengthen further (Scotiabank recently forecast the dollar rising to as much as 0.925USD in 2005), I am considering increasing my foreign investments in the new year, mainly using the iUnits and iShares index funds. I am also considering initiating new positions in US Small Cap Equities and Emerging Market equities.
Choices include:
- US LargeCap: iUnits S&P 500 RSP Index (TSX: XSP), iShares Dow Jones Select Dividend Index (DVY)
- US MidCap: iShares S&P MidCap 400 Index (IJH), iShares Russell MidCap Index (IWR)
- US SmallCap: iShares S&P SmallCap 600 Index (IJR), iShares Russel 2000 Index (IWM)
- EAFE: iUnits MSCI EAFE RSP Index (TSX: XIN)
- Emerging Markets: iShares MSCI Emerging Markets Index (EEM)
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