investingfromtheright

I am retired and take educated guesses on all things financial.

December 18, 2006

December 19, 2006: ETFs for consideration

As we do our portfolio reviews it is an overwhelming task to sort through thousands of investment options by name, let alone by quality and appropriate inclusion in one's portfolio.

The Hedge, or Speculative Portfolio provides necessary spice to hopefully boost your total investment return. With 2007 shaping up to be a challenging year for investors with pros opinions ranging from from goldilocks to gloom (or worse), here are a few ETFs you may want to take a closer look at.

www.powershares.com

Powershares Industry Rotation Fund (based on the Value Line Industry Rotation Index)

Value Line, an old chestnut advisory service that used to be the most current- coming out weekly delivered by your mailman, is still doing a good job with stock and industry rankings.

Top holdings recently include:
Midwest Air, Akamai, NBTY, BT Group, Garmin, Canon, Interwoven and Schering-Plough.

ticker symbol: PYH (introduced 12/01/06)


Powershares Listed Private Equity Portfolio Fund

An interesting play on the takeover frenzy. Unfortunately, the best takeover artists are likely private. The public takeover advisors and participants still may be a viable speculation.

Top holdings recently include:
American Cap. Strategies, Luecadia,SVB Financial,Capital Source, Allied Capital, KKR Financial and MacQuarie Infrastructure Trust.

ticker symbol: PSP (introduced 10/24/06)
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www.wisdomtree.com

Wisdom Tree International Dividend Achievers Fund

A good currency hedge using established international companies with the potential for steady growth, especially with utility consolidation in play.

Top holdings include:
Nam Tai Electric, Telstra Corp., Lloyds TSB Group,Endesa, Huaneng Power Ltd., ABN Amro

ticker symbol: PID (introduced 9/15/05)

Wisdom Tree Dividend Top 100

An interesting mix of dividend producing stocks with a more speculative flavor.

Top holdings include:
Southern Copper, Regions Financial, Lincoln National, GM, AT&T, Progress Energy, Excel Energy and Equity Office Property Trust.

Wisdom Tree International Utility Sector Fund

Less speculative than the International Dividend Achievers Fund. I like the holdings of this fund as a currency hedge and for a solid bet on worldwide utility company consolidation.

Top holdings include:
Enel,E.ON,Suez,National Grid,RWE, Fortum OYJ, Iberdrola and Scottish Power


www.ishares.com

I recently purchased these two iShares for my portfolio, as a play on Asia, currency and the gradual ascendancy of Pan-Asia as the center of commerce and to a degree, political power, in the world.ETFs are excellent hedging vehicles as their portfolios are updated daily, they can be traded cheaply and promptly, and their costs are lower than most mutual funds. I do not advocate day trading ETFs, as their contents do not activate that strongly on a minute by minute basis. When buying an ETF, use a market limit order one or two cents above (or below) the last real time trade.

Japan (ticker symbol: EWJ)


Singapore (ticker symbol: EWS)

I presently hold the following ETFs:

Claymore Zacks Dividend Hog (ticker symbol: CVY)
Claymore BRIC (ticker symbol:EEB)
iShares Switzerland (ticker symbol EWL)
Powershares Water Resources (ticker symbol:PHO)


FLASH: POWERSHARES ANNOUNCED TODAY A NEW ETF WHICH WILL INCLUDE A PORTFOLIO OF "BUYBACK ACHIEVERS". THESE ARE COMPANIES WHO HAVE BOUGHT BACK AT LEAST 5% OF THEIR STOCK IN A FISCAL YEAR, AND WHOSE STOCK PERFORMANCE IS POSITIVE.

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