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Inflation worries got you down? Buy TIP, a Treasury Inflation Protected ETF

Mitch Tuchman — Wed, 23 Sep 2009 18:00:00 EST

Filed under: ETF Investing, Personal Finance

With ever growing uncertainty whether our economy will face inflation or deflation in the months to come given recent government spending, what is certain is that no one wants to see their fixed income lose purchasing power. Unlike most bonds that pay out a fixed dollar amount in interest, treasury inflation protected bonds (TIPs) pay out a fixed amount over the consumer-price index (CPI), making them a popular choice for investor anticipating the economy to experience inflation. If inflation is higher than projected, the government adds to your principal on a TIP and makes up the difference!

Not only does owning TIPs allow one to keep up with monthly bills that are increasing in step with inflation, they are an important asset class to consider when determining an asset allocation strategy. TIPs enable one to further diversify a portfolio. Bonds are ideal for those not able to stomach much risk and TIPs in particular protect one's fixed income from eroding.

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Inflation worries got you down? Buy TIP, a Treasury Inflation Protected ETF originally appeared on BloggingStocks on Wed, 23 Sep 2009 18:00:00 EST. Please see our terms for use of feeds.

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Global water shortages? Buy PHO, a commodity ETF

Mitch Tuchman — Mon, 24 Aug 2009 13:20:00 EST

Filed under: Mutual Funds, Personal Finance, Stocks to Buy

One of the most valuable commodities in the world is water -- without it, mankind can't survive. While more than 70% of the Earth's surface is covered by water, but 97% of it is saltwater and only 1% of the remaining 3% is readily available for consumption. Water is becoming scarce, and upcoming water shortages are emerging as the population of the world increases, particularly in emerging markets like China, India, and Mexico.

A great way to include water as part of your portfolio's commodity allocation is by buying an exchange-traded fund (ETF). An ETF is a basket of stocks that allow you to invest in a single asset class, sector, country, or theme with one stock. In one ETF, you'll own not only water utility companies but also related businesses, like those that help build the infrastructure for making water suitable for drinking. You won't have to pick a single stock, rather you can own the most important stocks in the water industry -- worldwide. ETFs are perfect building blocks for building a diversified portfolio using an asset allocation strategy.

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Global water shortages? Buy PHO, a commodity ETF originally appeared on BloggingStocks on Mon, 24 Aug 2009 13:20:00 EST. Please see our terms for use of feeds.

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ETF to hedge against portfolio risk: VXX

Mitch Tuchman — Thu, 30 Jul 2009 16:20:00 EST

All of a sudden, investors don't seem to have a care in the world. The market is going up and up, and complacency has set in. One way investors measure this complacency is through an index called the "VIX." VIX measures the implied volatility of a basket of options on the S&P 500 index. The more investors are willing to pay for puts and calls, the more there is an implication that they are "nervous."

If you are a contrarian investor, the way you read the VIX is: 1) if you buy stocks now you are moving with the momentum of the market; and 2) the market could get really "choppy" soon, and 3) if you wait patiently to buy stocks after fear has returned to the market, you will likely enjoy a substantial gain when volatility returns to the market.

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ETF to hedge against portfolio risk: VXX originally appeared on BloggingStocks on Thu, 30 Jul 2009 16:20:00 EST. Please see our terms for use of feeds.

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Is there a Bernie Madoff in your portfolio?

Mitch Tuchman — Mon, 06 Jul 2009 13:20:00 EST

Filed under: Mutual Funds, Money and Finance Today, ETF Investing, Personal Finance

As you read stories about victims of the Madoff fraud, aren't you glad that you weren't one of them? Why are you so sure that it will never happen to you? How do you know its not happening to you now?

In academic financial research, there's a concept called "agency risk." Agency risk occurs when someone who is acting as your agent has a set of interests that conflict with yours. In investing, agency risk is rampant because one party can often gain from an action that will cause a loss to the investor without the investor even knowing it! Bernie Madoff was an agent of the investors who hired him to manage their money and he was crooked for years until his scheme ended. But investors face plenty of legal, yet sometimes equally dangerous forms of agency risk. It is important to understand them and find ways to mitigate these risks.

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Is there a Bernie Madoff in your portfolio? originally appeared on BloggingStocks on Mon, 06 Jul 2009 13:20:00 EST. Please see our terms for use of feeds.

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ETF Portfolios: Is it time to invest in banks? Then buy PJB.

Mitch Tuchman — Mon, 04 May 2009 15:00:00 EST

Filed under: Bank of America (BAC), Wells Fargo (WFC), U.S. Bancorp (USB)

With President Obama at the helm it seems as though the light might be shining on the economic horizon. If you're of this opinion then now might be a good time to invest some of your hard earned savings in the banking industry.

But what banking firm do you decide to go with? Rather than selecting just one bank, how about hedging your bets by investing in many diverse banks from all over the country? An exchange traded fund (ETF) is a great way to do just that. By investing in the ETF PowerShares Dynamic Banking (PJB) you get shares of several different banks. PJB seeks to replicate the Dynamic Banking Intellidex index and invests at least 90% of assets in common stocks that comprise that index. Among their holdings in the PJB ETF are BancFirst Corporation(NASDAQ GS: BANF) BancFirst's holding company, Capital Federal Financial(NASDAQ GS: CFFN) the holding company for Capitol Federal Savings Bank, and Northern Trust Corporation(NASDAQ GS: NTRS) Northern Trust Company's holding company.

Continue reading ETF Portfolios: Is it time to invest in banks? Then buy PJB.

ETF Portfolios: Is it time to invest in banks? Then buy PJB. originally appeared on BloggingStocks on Mon, 04 May 2009 15:00:00 EST. Please see our terms for use of feeds.

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ETF Stocks: Can you beat SPY? How to benchmark your performance

Mitch Tuchman — Fri, 13 Feb 2009 16:40:00 EST

Filed under: Microsoft (MSFT), General Electric (GE), Pfizer (PFE), Wal-Mart (WMT), Exxon Mobil (XOM), AT and T (T), Mutual Funds, Johnson and Johnson (JNJ), JPMorgan Chase (JPM), Chevron Corp (CVX), Procter and Gamble (PG), ETF Investing, Personal Finance

If you are picking stocks for your own portfolio, then you are competing against all of the smart stock pickers in the world. In fact, when you're buying or selling, there's someone on the other side betting against you.

While it may be fun, this may not be profitable in that you may end up underperforming the stock market as a whole. In fact, there's a greater than 50% chance, you're losing money by picking stocks.

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ETF Stocks: Can you beat SPY? How to benchmark your performance originally appeared on BloggingStocks on Fri, 13 Feb 2009 16:40:00 EST. Please see our terms for use of feeds.

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ETF Stocks: Use BDH for a play on broadband technologies

Mitch Tuchman — Fri, 13 Feb 2009 12:00:00 EST

Filed under: Motorola (MOT), Ciena Corp (CIEN), Corning Inc (GLW), Alcatel-LucentADS (ALU), QUALCOMM Inc (QCOM), ETF Investing, Broadcom Corp'A' (BRCM)

The old adage to new investors has always been to invest in something that you use or believe in. Right now, you're probably reading this online and there's a good chance you got online through a broadband connection, so why not invest in the companies that continue to supply equipment for the growth of the broadband revolution?

The exchange-traded fund (ETF) Broadband HOLDRs (NYSE: BDH) is a great way to invest in the broadband industry without having to select one company. BDH consists of about 22 companies that develop, manufacture and market products and services that facilitate the transmission of data, video and voice more quickly and efficiently than traditional telephone line communications.

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ETF Stocks: Use BDH for a play on broadband technologies originally appeared on BloggingStocks on Fri, 13 Feb 2009 12:00:00 EST. Please see our terms for use of feeds.

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A defensive investment: Biotechnology ETFs

Mitch Tuchman — Sat, 07 Feb 2009 13:10:00 EST

Filed under: Mutual Funds, Abbott Laboratories (ABT), Genentech Inc (DNA), ETF Investing

One of the buzzwords that is currently in vogue in the investment community is biotechnology. This is a broad-based field that covers technological applications in any biological system, meaning humans, animals, agriculture, and medicines. This is a booming science and the investment field offers many opportunities for wealth accumulation.

If you don't want to spend countless hours trying to understand not just financials, but scientific and technical jargon that biotech companies harbor, exchange-traded funds (ETFs) may be the better choice for investing in the biotechnology industry.

An ETF is similar to buying a share of a company, but instead of getting one particular company you're investing in a bundle of companies within a particular field or specialty. It's a great way to invest in something you believe in while still hedging your bets and having a bit of diversity.

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A defensive investment: Biotechnology ETFs originally appeared on BloggingStocks on Sat, 07 Feb 2009 13:10:00 EST. Please see our terms for use of feeds.

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ETF Funds: Hedge your home heating bills with UNG

Mitch Tuchman — Thu, 29 Jan 2009 18:00:00 EST

Filed under: Mutual Funds, ETF Investing, Personal Finance, Commodities, Oil

Here's an idea if you are worried about your heating bills this winter. The price of natural gas is crashing. The price decreases last week continued a down trend that's gone on for six months. Why? The economic downturn slows demand for gas and many companies are announcing layoffs and closing plants around the country. Reduced prices for natural gas are also a result of growing capacity in the U.S. because of increases in production at new fields. Natural gas prices are at multi-year lows falling from 65% from more than $13.31 per MMBtu (the way gas is measured) in July 2008 to under $5 -- the lowest since October 13, 2006.

United States Natural Gas (NYSE: UNG) is an exchange-traded fund (ETF) that reflects the price of natural gas in the United States. UNG attempts to mirror the performance, net expenses, of natural gas at the Henry Hub, Louisiana.

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ETF Funds: Hedge your home heating bills with UNG originally appeared on BloggingStocks on Thu, 29 Jan 2009 18:00:00 EST. Please see our terms for use of feeds.

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ETF Portfolios: Even In This Economy -- Everyone Has To Eat! Own PBJ

Mitch Tuchman — Wed, 28 Jan 2009 22:45:00 EST

It's hard to decide where to place your investments these days with some of the traditional safe bets not feeling so safe. One thing is for certain, people will continue to need staple products, even if they're finding them more inexpensively or they're purchasing less of them.

Some staples that will always be in demand, no matter what the economic environment is, are food stock and beverages. If you'd like to find a way to invest in food and beverages, consider making a purchase of and exchange traded fund (ETF). Exchange traded funds are a collection of stocks bundled together so you are not purchasing one single company, but you're diversifying across a sector, thereby limiting your risk. And they are usually 80% less than a mutual fund that uses active management.

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ETF Portfolios: Even In This Economy -- Everyone Has To Eat! Own PBJ originally appeared on BloggingStocks on Wed, 28 Jan 2009 22:45:00 EST. Please see our terms for use of feeds.

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Go Green with Low Cost ETF Funds: EVX

Mitch Tuchman — Fri, 23 Jan 2009 14:45:00 EST

Filed under: ETF Investing

The color for this age is definitely green as eco-consciousness is sweeping the country. For those of you who are worried about the environment and doing your share to save this planet in the future, how about letting the green movement make you earn more green.

Making the right choices for the environment seems to finally have taken hold and with the new Obama administration it should only pick up speed. If you see the value in investing in environmental services you can divest your funds by selecting an exchange traded fund (ETF). Exchange traded funds let you purchase stocks in a particular field but within that stock you own several different companies.

One environmental services ETF that may be worth researching is Market Vectors Environmental Services ETF (NYSE: EVX). EVX uses its investments to replicate the price and yield performance of the AMEX Environmental Service index. Some of their holdings include Waste Management, Inc. (NYSE: WMI) who provides integrated waste serviced in the U.S. and internationally, American Ecology Corporation (Nasdaq: ECOL) who uses subsidiaries to provide hazardous waste collection and management, and Calgon Carbon Corporation (NYSE: CCC) who works to purify water and air in the United States and internationally.

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Go Green with Low Cost ETF Funds: EVX originally appeared on BloggingStocks on Fri, 23 Jan 2009 14:45:00 EST. Please see our terms for use of feeds.

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Sell your marginal stocks and upgrade with DIA - an ETF betting on America

Mitch Tuchman — Thu, 18 Dec 2008 17:00:00 EST

Filed under: ETF Investing, Personal Finance, Best Stocks for 2008

It's never been a good idea to bet against America. And nothing is better than America's diamonds, so you can't help but love the companies that comprise DIAMONDS Trust, Series 1 (NYSE: DIA) exchange-traded fund (ETF). DIA is one of the first ETFs ever created and indexes the Dow Jones Industrial Average. These are the best companies in America -- good, solid producers.

Valuations have been crushed across the board in 2008, and many money managers that I know who have owned more speculative small cap companies, are looking at the stocks in the Dow Jones that are trading at historically low multiples and "trading up" in the quality of their companies. Do you have $10,000 in a few marginal small cap companies? Sell them all and buy DIA -- you might get a safer ride if the market continues to fall, while preserving nearly all of the upside.

During the last 12 months, DIA has paid about $3 of dividends. Based upon an $87 price, this is about a 3.4% yield and you still have all the upside -- remember a few months ago the Dow was at $135.

Examples of the well-known and respected companies in DIA include 3M Company (NYSE: MMM), Boeing Company (NYSE: BA), Johnson & Johnson (NYSE: JNJ), McDonald's Corp. (NYSE: MCD), and Wal-Mart Stores, Inc. (NYSE: WMT) among many other famous brands. These brands are consistent performers and even in times of economic crisis, will probably still draw huge numbers of customers to their products.

Why pay a large cap money manager to stock pick among the Dow Jones? DIA only charges 0.14% to own all the companies through this ETF whereas a traditional money manager would charge you much 1% - 2% to invest in the same companies, thus taking most of your dividend away in fees.

Continue reading Sell your marginal stocks and upgrade with DIA - an ETF betting on America

Sell your marginal stocks and upgrade with DIA - an ETF betting on America originally appeared on BloggingStocks on Thu, 18 Dec 2008 17:00:00 EST. Please see our terms for use of feeds.

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Sector ETFs: Build a Strong Foundation with XHB

Mitch Tuchman — Mon, 15 Dec 2008 18:50:00 EST

Filed under: Home Depot (HD), Centex Corp (CTX), Lowe's Cos (LOW), Lennar Corp'A' (LEN), Toll Brothers (TOL), ETF Investing, Housing, Financial Crisis

The homebuilder's market has been hit pretty hard in the last 2 years by the resounding pop of the housing market, but at some point, they're due for a turn of fortune. If you're a strong believer in the recovery of the housing market and feel that the future for homebuilders appears bright, or at least brighter than it's been in the last few years, then here's an easy and efficient way to invest in the homebuilder's market.

SPDR S&P Homebuilders (NYSE: XHB) is an exchange traded fund (ETF) that seeks to replicate the performance of an index derived from the homebuilding segment of the U.S. total market composite index before expenses. Meaning, it's a way for you to invest in homebuilders and companies that support home building, across the board rather than trying to pick and choose a single company to hedge your bets with.

With an investment in XHB you'll get shares of noted representatives from that field such as Home Depot (NYSE: HD) and Lowes (NYSE: LOW), two well-known leaders in the home improvement retail field, Ethan Allen Interiors Inc. (NYSE: ETH) a home furnishing staple, Centex Corporation (NYSE: CTX) a homebuilding giant, and Leggett & Platt Inc. (NYSE: LEG) who produces components and products used worldwide in the creation of homes and furnishings. An obvious reach into every area of the homebuilding market, using some of the most trusted companies around.

Its anyone's guess when XHB will rise, but since the beginning of 2007, XHB has lost about 67% of its value.

For only a 0.35% fee the fund tracks the total return and performance of the S&P Homebuilders Select Industry index and derives the strongest basket of holdings. You'd pay up about 3-5 times that amount to have a money manager at a mutual fund provide the same results. Review the incredible diversity of XHP by examining its top 10 holdings listed below.

Continue reading Sector ETFs: Build a Strong Foundation with XHB

Sector ETFs: Build a Strong Foundation with XHB originally appeared on BloggingStocks on Mon, 15 Dec 2008 18:50:00 EST. Please see our terms for use of feeds.

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Sector ETF Portfolios: Invest in the Necessities of Life with XLP

Mitch Tuchman — Sat, 13 Dec 2008 11:40:00 EST

Filed under: Wal-Mart (WMT), Coca-Cola (KO), PepsiCo (PEP), Colgate-Palmolive (CL), Procter and Gamble (PG), ETF Investing, Kraft Foods'A' (KFT), Personal Finance

Word is that retailers will be having a very cold holiday season this year. In fact, MasterCard has noted that sales of apparel, shoes, and appliances dropped considerably in the first two weeks of November. Consumers are being a little thriftier when it comes to extras as they're worried about unemployment and the recent news of a financial crisis. But no matter what's going on in the economy, there are just things that people need, staple items.

An investment in staples means you're banking on something that people are always going to need and will always purchase, no matter what the economy forecast is. Consumer Staples Select Sector SPDR (NYSE: XLP) is an excellent way to invest in a variety of staples in one single investment purchase. This exchange traded fund (ETF) includes companies from food and drug retailing, beverages, household products and personal products. Items that are clearly essential to daily living.

With a single stock -- XLP you will get shares of such noted companies as the Coca Cola Co. (NYSE: KO), Colgate Palmolive (NYSE: CL), Kraft Foods Inc. (NYSE: KFT), PepsiCo Inc. (NYSE: PEP), Procter & Gamble Co. (NYSE: PG), and Wal-Mart Stores (NYSE: WMT). These are all well-known household names that will continue to be market leaders in any financial environment. If you want to invest in things that people need, XLP is a sound choice.

Continue reading Sector ETF Portfolios: Invest in the Necessities of Life with XLP

Sector ETF Portfolios: Invest in the Necessities of Life with XLP originally appeared on BloggingStocks on Sat, 13 Dec 2008 11:40:00 EST. Please see our terms for use of feeds.

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Sector ETFs: Energize your portfolio with XLU

Mitch Tuchman — Fri, 05 Dec 2008 16:30:00 EST

Filed under: Duke Energy (DUK), Southern Company (SO)

With the shift of power in the United States one of the hot topics is obviously America's dependence on oil and fuel consumption. During the coming administration we're likely to see a change in the energy field as new options are sought. It's likely that there will be some newcomers to the industry, but most likely the old standards will continue to pave the way for the future of energy.

I doubt that there will be any disruptive technologies to change the utilities in my lifetime. By investing in an exchange traded fund (ETF) consisting of a basket of utilities you will have a safe bet on energy. Utilities Select Sector SPDR (XLU) includes electric utilities, multi-utilities, independent power producers, energy traders and gas utilities.

You'll own companies such as Exelon Corp. (NYSE: EXC) a utility services holding company, Southern Company (NYSE: SO) who uses subsidiaries in the generation, transmission, distribution and sale of electricity, Dominion Resources, Inc (NYSE: D) a provider of electricity and natural gas to the eastern United States, and Duke Energy Corp. (NYSE: DUK) an energy company in the Americas. XLU also gives you a diversified basket of dividend paying stocks. Over the past year, XLU has paid about $1.20 which is currently a 4.3% yield on a $28 stock which down 33% this year (which means your dividend yield is higher). That's a lot better than 10 year T-Bills and the stocks in this index could appreciate as well.

Continue reading Sector ETFs: Energize your portfolio with XLU

Sector ETFs: Energize your portfolio with XLU originally appeared on BloggingStocks on Fri, 05 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

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Retail Rally? Open the Door with RTH - A Sector ETF

Mitch Tuchman — Thu, 04 Dec 2008 14:58:00 EST

Filed under: Wal-Mart (WMT), Amazon.com (AMZN), Home Depot (HD), Mutual Funds, Walgreen Co (WAG), Target Corp. (TGT), Kroger Co (KR), Costco Wholesale (COST), CVS Corp (CVS), Lowe's Cos (LOW), ETF Investing, Personal Finance

This holiday season retailers are gearing up for one of the worst years yet. They've read the news and know that unemployment is up, people are putting off large purchases, and we're in the midst of a financial crisis. These unfortunate facts are not only reflected in most retail store's bottom lines, but also in stock prices. The Retail HOLDRs (AMEX: RTH) exchange traded fund (ETF) is showing a bit of an unexpected trend as it recently outperformed the market from its highs in September 2008.

It must be noted that the success of RTH is its share of Wal-Mart (NYSE: WMT), which is a full 26% of the holdings. RTH has done very well in the current economic environment as people are looking for the best deals across the boards. Year to date, RTH is down about 25%, compared to the S&P which is down about 40%. In fact, not only is Wal-Mart not following economic predictions for the retail market, but other retail stores may also see less decline or even growth in the coming weeks. This is not the first time predictions have been dire, and yet the retail industry ended up smelling like a rose.

If you feel the outlook is more doomsday than it needs be, or if you see that the situation is actually ripe for a retail rally, consider buying RTH, which not only holds significant stock in Wal-Mart but also includes well known and big retailers such as Target Corporation (NYSE: TGT), Lowes Companies (NYSE: LOW), Walgreen (NYSE: WAG), and Home Depot (NYSE: HD) among many other household names.

Continue reading Retail Rally? Open the Door with RTH - A Sector ETF

Retail Rally? Open the Door with RTH - A Sector ETF originally appeared on BloggingStocks on Thu, 04 Dec 2008 14:58:00 EST. Please see our terms for use of feeds.

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ETF Portfolios: Go Nuclear with NLR

Mitch Tuchman — Wed, 03 Dec 2008 10:37:00 EST

Filed under: Mutual Funds, Money and Finance Today, ETF Investing, Commodities

While the world is seeking out alternative energy sources, nuclear energy is gaining some steam. Iran's Deputy Foreign Minister, Hossein Sheikholeslam, recently said that his country needs nuclear energy as a substitute for its oil resources. He is quoted as saying that, "Iran will have oil for over 100 years, but once its energy resources is depleted, nuclear energy will be the only logical substitute."

The United States isn't quite as bullish on nuclear energy at this point in time, but Obama's administration is going to flood dollars into infrastructure projects -- many of which are to get us off our "oil addiction." If you feel nuclear energy is a solution there is a way to invest on a global level. By selecting an exchange traded fund (ETF) that is focused on the nuclear energy field you are essentially investing your money in several different companies across the globe who are leaders in this industry.

Market Vectors Nuclear ETF (NLR) is an excellent way to diversify your investment in the nuclear energy field as they not only offer incredible global exposure, but also give you a chance to invest in a variety of aspects of nuclear energy generation, from uranium mining all the way through to fuel transport. With an investment in NLR you will get shares in British Energy (LSE: BGY.L) the U.K.'s largest producer of electricity, Exelon Corporation (NYSE: EXC) a utility services holding company, Constellation Energy Group (NYSE: CEG) and energy supply company for North America. You also get, in this basket, companies that supply materials necessary for building and running a nuclear power plant like Uranium One Incorporated (Toronto: UUU.TO) a Canadian based uranium mining and exploration company, as well as many other leaders in the field.

Market Vectors charges only a 0.65% fee, a fraction of what a professional money manager would charge to analyze, research and select nuclear energy stocks with this level of global reach. Proving the global perspective, the top 10 holdings, representing 64.48% of the total assets, are listed below.

9.02% BRITISH ENERGY
4.22% CAMECO CORP COM NPV
7.38% Constellation Energy Group, Inc.
8.19% Electricite de France
4.34% Energy Resources of Australia Ltd.
7.81% Exelon Corp.
4.87% JGC CORPORATION
8.15% Mitsubishi Heavy Industries, Ltd.
5.15% PALADIN FPO
5.35% Uranium One Inc

Mitch Tuchman founded MarketRiders, an investment website teaching individuals how to save on fees and be their own investment advisor using low cost ETFs and asset allocation.

ETF Portfolios: Go Nuclear with NLR originally appeared on BloggingStocks on Wed, 03 Dec 2008 10:37:00 EST. Please see our terms for use of feeds.

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Commodity ETF investing: Own 42 coal mining companies with KOL

Mitch Tuchman — Sat, 22 Nov 2008 13:10:00 EST

Filed under: ETF Investing, Personal Finance, Commodities, Oil

Whether it's a recession or an economic boom, one thing doesn't change, the need for energy. And until technology leaps ahead, coal is the largest producer of fuel for the generation of electricity in the world. It's also the most abundant fossil fuel in the United States. Coal is obviously not recession immune as people tighten the reigns on their lives and cut back on electricity consumption, but the shear necessity of electricity makes the coal industry fairly resistant. An investment in an exchange traded fund (ETF) that is centered on the coal industry is a great way to hedge your bets by investing in a pool of successful companies in the coal field.

Market Vectors Coal ETF (NYSE: KOL) seeks to replicate the price and yield performance of the Stowe Coal index, which provides exposure to publicly traded companies worldwide that derive greater than 50% of their revenues from the coal industry. With KOL you'll own shares of some of the most noted coal companies in the world, including Arch Coal Inc. (NYSE: ACI), which specializes in steam and metallurgical coal; CONSOL Energy Inc. (NYSE: CNX), a large provider of fuel for electricity in the United States; Alpha Natural Resources Inc. (NYSE: ANR), another leader in steam and metallurgical coal; and Peabody Energy Corp. (NYSE: BTU), an exploration miner and coal producer worldwide, as well as several other highly rated coal companies across the globe.

Market Vector charges only a 0.65% fee, a fraction what a professional money manager would charge you to analyze research and pick coal mining stocks with this level of global reach. Recently KOL has gone through a typical correction for this commodity sector, but then suffered a greater hit as Asia saw a 20% decline in spot prices for thermal coal. The result? A better deal for those currently willing to dive into coal as an investment. KOL is up 14%, so maybe there's some light at the end of the mine.

Continue reading Commodity ETF investing: Own 42 coal mining companies with KOL

Commodity ETF investing: Own 42 coal mining companies with KOL originally appeared on BloggingStocks on Sat, 22 Nov 2008 13:10:00 EST. Please see our terms for use of feeds.

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ETF Investing: We Get Sick In Recessions! XPH and IHI Healthcare Stocks

Mitch Tuchman — Thu, 20 Nov 2008 17:40:00 EST

Filed under: Pfizer (PFE), Getting Started, Johnson and Johnson (JNJ), Boston Scientific (BSX), Bristol-Myers Squibb (BMY), Merck and Co (MRK), Watson Pharmaceuticals (WPI), ETF Investing

It's one of those unfortunate facts of life, everyone is going to get sick at some time in their lives. It could be something as simple as the common cold or a complex series of symptoms that takes years to diagnose. The upside of all of this is that the medical business is a relatively safe bet when it comes to investments. If you see the benefit of this and want to put some money into a health care related investment, look into an Exchange Traded Fund (ETF) that will give you the opportunity to hold shares in several different companies rather than trying to guess who's going to come up with the next miracle cure.

There are a couple different companies that let you get your feet wet in the medical field. You could invest in medical devices, which covers everything from stethoscopes to complicated surgical tools. iShares Dow Jones US Medical Devices ETF (NYSE: IHI) lets you in on an investment that includes leaders in the field such as Boston Scientific Corporation (NYSE: BSX), Medtronic, Inc. (NYSE: MDT), and Covidien, Ltd. (NYSE: COV). Each of these companies provides medical devices that hospitals simply cannot do without.

IHI looks to achieve results that correspond to the Dow Jones US Select Medical Equipment index and through a computer aided system, rather than by using money managers, they're able to charge only a 0.48% fee to maintain your stock.

Another great way to invest in the healthcare business is to buy shares in the companies who work tirelessly to provide lifesaving drugs. The Exchange Traded Fund SPDR S&P Pharmaceuticals (XPH) lets you in on several of the top pharmaceutical companies in the world by following a passive management strategy that tracks the total return performance of the S&P Pharmaceutical Select Industry index.

Continue reading ETF Investing: We Get Sick In Recessions! XPH and IHI Healthcare Stocks

ETF Investing: We Get Sick In Recessions! XPH and IHI Healthcare Stocks originally appeared on BloggingStocks on Thu, 20 Nov 2008 17:40:00 EST. Please see our terms for use of feeds.

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Hedge Inflation with two gold ETF ideas: GDX and GLD

Mitch Tuchman — Wed, 19 Nov 2008 17:15:00 EST

Filed under: Barrick Gold (ABX), Yamana Gold (AUY), Newmont Mining (NEM), ETF Investing, Goldcorp Inc (GG), Kinross Gold (KGC), BHP Billiton Ltd ADR (BHP), Anglo American (AAUKY)

It seems that everywhere you turn you hear something about the price of gold, from analysts to commercials encouraging you to sell your old jewelry for big bucks. If you're tempted, how about a bit safer investment in the commodity? Let your money work for you -- invest in an Exchange Traded Fund (ETF) that hold shares in several different gold producers, and you can ride the wave of the industry.

Market Vectors Gold Miners ETF (AMEX: GDX) is a perfect opportunity to ride this wave with as the fund's goal is to mimic the price and yield performance of the AMEX Gold Miners index, before fees and expenses. This is a nondiversified fund that is comprised of several well known companies whose main operations involve gold and silver mining.

There are two reasons to buy GDX instead of the SPDR Gold Trust (NYSE: GLD) or the iShares Comex Gold Trust (NYSE: IAU) both of which are pure gold ETFs (you own a share of gold sitting in a safe). First, the ratio between gold and the value of the gold held by miners has been relatively stable for 30 years. But today, the gold miners are selling at 33% of that historical ratio, so bulls say it's better to buy the miners, not the metal. Second, the biggest expense of a mining company is energy. Oil today hit $54 per barrel, down 63% from a peak of $147. This adds to the profits of the Gold Miners.

Continue reading Hedge Inflation with two gold ETF ideas: GDX and GLD

Hedge Inflation with two gold ETF ideas: GDX and GLD originally appeared on BloggingStocks on Wed, 19 Nov 2008 17:15:00 EST. Please see our terms for use of feeds.

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