5 ETFs for a Global Recovery
November 30th 2009 at 1:00pm by Tom Lydon
There are a copious amount of available exchange traded funds (ETFs) and, at times, it may be difficult to shift through and choose an investment that is likely to improve along with global economies. We’ve chosen five that could reflect the world’s recovery efforts.
Copper. China’s buying spree has been seen as a major driver of commodity prices in recent months, and copper prices were along for the ride. But some see this move as more bargain shopping than an actual demand-driven rally. (Will copper ETN be a hit?) Once global economies resume normal growth, industries will likely need this basic material to begin rebuilding. (More on copper).
- iPath Dow Jones AIG Copper TR Sub-Index ETN (NYSEArca: JJC): up 118.3% year-to-date
Shipping. The shipping sector is another indicator of how the world is recovering. When global demand resumes, shipping prices should recover and idle ships should once again set sail. (Challenges facing shipping industry). As consumers begin to spend more and nations struggle to rebuild, this sector will ultimately reflect a shift in the tides. (More on shipping).
- Claymore/Delta Global Shipping (NYSEArca: SEA): up 28.2% year-to-date
S&P 500, a reflection of improvements in the United States. The S&P 500 reflects a fairly accurate assessment of the health of U.S. companies and the eventual rebound of U.S. stocks will be mirrored by the S&P 500 ETF. After the spectacular gains off the March lows, the stock market is still lower than it was prior to January 2000, which leaves a lot of room for recovery. (More on the S&P 500)
- SPDRs S&P 500 (NYSEArca: SPY): up 23.5% year-to-date
Emerging markets: the second coming. Compared to the lagging Occidental countries, emerging markets are booming. To the surprise of many, it was the emerging markets that recovered before the developed world even began to dream of a turnaround. (Why emerging markets make a great addition to your portfolio). In the long-term, many expect that emerging markets will only continue to become major contributors to the health of the global economy. (More on emerging markets).
- iShares MSCI Emerging Markets (NYSEArca: EEM): up 61.9% year-to-date
Retail. Sector ETF SPDR S&P Retail (NYSEArca: XRT) holds a mix of value and regular retail stores, which has helped the fund outperform other retail funds this year. The outlook for retailers brightened somewhat in October. Chain-store sales notched their second consecutive gain, and it was the best performance for the industry in more than a year. As the economy improves, consumers will do what they were made to do – consume. (More on retailers).
- SPDR S&P Retail (NYSEArca: XRT): up 72.7% year-to-date
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.