Investing by Proxy

The idea behind the title is that sometimes we don’t have to invest directly in order to invest in some specific sector/investment. It is kinda like investing indirectly in the sector you want. In this post lets review a few such strategies.


Instead of investing directly in commodity stocks like oil,mining, etc. it may be a better and easy way to pick up some commodity rich countries. Countries like Canada,Australia, Brazil, Russia match this scenario since they are so commodity driven economies.

To invest in them pick up the following ETFs:

Australia – EWA

Canada – EWC

Russia – RSX

Brazil – EWZ

2.Growth in Central Europe

To take advantage of growth in central European countries like Romania, one can pick up some ishares Austria shares EWO. This will give indirect exposure to Central Europe. Erste Bank, a large Austrian bank is expanding heavily in neighboring countries.

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