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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerThis post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"As we head into 2009's turbulent waters, it will take two oars to keep a straight course; as such, for my top pick for 2009, I am selecting a pair of ETFs," notes fund expert Jim Lowell.
In his Marketwatch ETF Trader, the advisor explains, "iShares Dow Jones U.S. Total Market (NYSE: IYY) covers the market broadly, while WisdomTree International Small Cap Dividend Fund (NYSE: DLS) has a more focused manner."
"Buying the broader market in 2008 was a sucker's bet; make that a sucker punch. But in 2009, it's neither an act of courage nor a fool's errand to 'buy the market.'
"After all, the likelihood of the markets selling into oblivion has arguably been priced into current levels, making the total market a deeply discounted stream worth stepping into in 2009.
"But while there are hundreds of choices for buying the market, iShares Dow Jones U.S. Total Market is my top ETF pick in no small measure because it's the most simple, elegant, and comprehensive way to cover the map of the U.S. markets.
"The top three sectors are financials (15.2%), technology (13.7%), and health care (13.5%). The top ten holdings are Exxon Mobil, General Electric, Proctor & Gamble, AT& T, Microsoft, Johnson & Johnson, Chevron, Wal-Mart, J.P. Morgan, and IBM.
"Obama bounce or no, this ETF should help every investor lay a better foundation for their financial future. Long term, if I could only own one ETF, WisdomTree Int'l Small Cap Dividend Fund would be the one I'd own. Short term, it could suffer through any remaining downturn and downdrafts with a multiple on the U.S. Total market losses.
"But, while it's not a pick for the faint of heart, for long-term investors looking to capitalize on the long-term trend of the growth of the global consumer (without the hang-ups of currency concerns), this ETF fits that bill. These are real companies, with real products, goods and services, and real customers on their own stomping ground.
"The benchmark: WisdomTree International Small Cap Dividend Index. The top three sectors are consumer discretionary (23.8%), industrials (21.3%), and financials (15.2%).
"The top ten holdings are Kungsleden, Electrocomponents, Yell Group, Orion, David Jones, Jardine Lloyd Thompson Group, Vector, West Australian Newspapers, Brit Insurance Holdings, and SMRT Corp."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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