The real opportunities in 2007, as far as exchange traded funds (ETFs) are concerned, can also be ones that will continue into 2008. ETFs aid investors in diversifying their portfolios, and protect against downside risk. Gary Gordon for ETF Expert says those who want to keep funneling their money into momentum markets need a plan for reducing the "bets" in the overall picture.

2007 concepts Gordon suggests we remember include:

• Foreign fixed-income – Diversifying across asset classes and across regions is made easier with these ETFs. Foreign bond exposure is also a plus because it tends to have no correlation with the U.S. stock market. New ETFs this year include PowerShares Emerging Market Sovereign Debt Fund (PCY) and SPDR Lehman International Treasury Bond ETF (BWX).
• Commodity Investing – ETFs and ETNs are helping investors to diversify across a number of commodities, rather than oil and gold. Livestock, agriculture, industrial metals, natural gas and timber are a few. ETFs in this arena include Claymore/Clear Global Timber Index (CUT) and iPath Dow Jones Total Commodity Index (DJP) giving special exposure.
• Global – Global index investing comprises the best companies in a given area without excluding the U.S. They can offer less volatility than a purely international play. One example is iShares U.S. Telecom Fund (IYZ) is up 1.3% year-to-date and iShares Global Telecom Fund (IXP) is up 25.9%.

Tags: Commodity ETFs, ETNs, Natural Gas