Main Street vs. Wall Street: Using ETFs to Capitalize

November 20, 2009 at 6:00 am by Tom Lydon

Millions are still out of work and losing their homes while Wall Street celebrates its rebound with bonuses and a return to profitability. It’s frustrating, but it does present exchange traded fund (ETF) opportunities.

On the one hand, unemployment rates remain elevated, companies continue to implement lean measures and overall consumer confidence is down. On the other hand, the largest four investment banks have earned $22.6 billion so far for this year, recovering much faster than anyone had envisioned they would. (More on banks).

Two reasons behind Wall Street’s success this year are the demise of several firms, leaving only the fittest around, and low interest rates, which makes borrowing relatively cheap, states Walter Hamilton of The Los Angeles Times.

How can you go about dusting yourself off and rebuilding your portfolio? Here are six strategies you can use. While you’re thinking about the rebuilding process, it’s also important to evaluate your past and figure out where you went wrong and where you went right. Here are 10 tips for becoming a better investor.

As a result of the recent uptrend seen on the Street, one can capitalize by investing in some of the firms that are showing renewed vigor. The SPDR KBW Capital Markets (NYSEArca: KCE) is one such tool. KCE focuses its holdings on some these investment banks and is up 45.2% year-to-date. (More on financials).

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