Richard Widows of helps identify 10 of the most diversified exchange traded funds (ETFs). The funds are measured by full exposure to all major sectors, including, basic materials, capital goods, communications services, consumer cyclicals, consumer staples, energy, finance, health care, technology, transportation, utilities and misc. There was a minimum 2% of assets held in each sector. The group with the most diversification was dominated by small-cap funds. The 10 ETFs passing the test are:

  • iShares Russell 2000 (IWM)
  • iShares S&P Small Cap 600 (IJR)
  • Vanguard Small Cap ETF (VB)
  • Vanguard Small Cap Value ETF (VBR)
  • iShares Morningstar Mid Core (JKG)
  • iShares Russell Mid Cap Growth (IWP)
  • Vanguard Extended Market ETF(VXF)
  • SPDR 500 (SPY)
  • iShares S&P Global 100 (IOO)
  • streetTracks Dow Jones Stoxx 50 (FEU)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.