The Top Eight Resource-Rich Countries

The following graph shows the eight richest countries by value of their natural resource reserves according to research by Citigroup. South Africa tops the list with its non-energy natural resource reserves valued at $2.5 Trillion. The developed countries in this ranking are the U.S., Canada and Australia.

Top-8-Resource-Rich-Countries

Some of these markets have become expensive after the huge run up since the March lows of 2009. For example, the South African ALSI Index is up 55% since the lows reached last year. Accordingly the P/E ratio has jumped from 9x earnings at the start of 2009 to over 17x times earnings now. This is well above the long-term average of 11.5 times earnings.

The country-specific ETFs for the above countries are:

  • iShares MSCI South Africa Index Fund (EZA)
  • iShares MSCI Russia Capped Investable Market Index Fund (RTS)
  • iShares MSCI Australia Index Fund (EWA)
  • iShares MSCI Canada Index Fund (EWC)
  • iShares MSCI Brazil Index Fund (EZA)
  • iShares FTSE/Xinhua China 25 Index Fund (FXI)
  • iShares MSCI Chile Investable Market Index Fund (ECH)
  • iShares S&P 500 Index Fund (IVV)

Note: I have used the S&P 500 as the proxy for the boarder US market.

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