May 19, 2008 at 6:00 am by Tom Lydon
Statistics reveal that financial advisors are starting to prefer sector-focused exchange traded funds (ETFs) over individual stocks. Broad-based ETF assets are down lately due to the state of the market, reports Jesse Emspak for Investor’s Business Daily.
With an inflow of $11.1 billion so far this year, industry-based ETFs haven’t experienced the same losses as the three major indexes and the outflows that have hit broad-based ETFs.
Equity ETFS pale in comparison, with outflows at $18.1 billion year-to-date.
Sector ETFs can be a great way to target a particular industry while protecting yourself from some of the risks in choosing a single stock. Among the top-performing sector funds year-to-date are:
- B2B Internet HOLDRs (BHH), up 26.2% year-to-date
- iShares Dow Jones Transportation Average (IYT), up 18.5% year-to-date
- SPDR S&P Homebuilders (XHB), up 14.4% year-to-date
Tags | Homebuilders, Real Estate, Technology, Transportation
May 19th, 2008 at 7:39 pm
two srs
on fixed income
keep hearing about etfs on corn wheat etc
r theysuitable for srs on fixed income
if so can you list several that we can watch
also how does one go about buying them
thanks
ted and sheila in conway sc
May 20th, 2008 at 9:47 am
With a fixed-income portfolio, you should have your portfolio set up to meet your financial goals and lifestyle. Your portfolio should also include some sort of exit strategy so you don’t lose as much on the downside.
As far as investing in agriculture, you would want to have the same exit strategy apply, as commodities can be volatile. Do your research as to which ones fit your needs.
If you’re interested in agricultural ETFs, you can buy them like a stock through your broker. Some of the ETFs (and ETNs) include: DBA, MOO, JJA, UAG, FUD.