Anyone know of any good ETF's to invest in? Any tips?
2006-12-27 10:15:15 · 6 answers · asked by Tom K 1 in Business & Finance ➔ Investing
ADRE (0.30%)
VWO (0.30%)
EFV (0.40%)
FXI (0.75%)
ETFtrends.com is free and very informative. Always check the charts on Yahoo Finance (also 100% free) and look at the expense ratio (the number in brackets above) that's how much the ETF costs per year.
There are a lot of great performers out there, especially FXI which may be nearing the end of an up-trend (bull cycle) and ready to start contracting (bear cycle) so I would be cautious & consider your timeline.
The Wisdom Tree company has some interesting etfs,and iShares has perhaps the biggest selection but selection will NOT be a problem with so many now in existence.
If etfs have a drawback, it is that they are so easy to trade that small investors trade them too quickly & rack up fees at their discount brokers. Do some homework & try out your plan.
Good investing!
;-)
*** DISCLOSURE STATEMENT : Wikijo does not own any of the etfs or the fund companies mentioned in this posting, although he has been eyeing them for some time! ***
2006-12-27 14:22:21 · answer #1 · answered by WikiJo 6 · 0⤊ 0⤋
900 ETF's????????? I DONT THINK SO!!!! It's more like 275.
As for single markets way too much political risk (especially China) I would not touch a single country and EZA is South AFRICA!
The last two posters on here knows what they are talking about. Homebuilders made a nice post christmas suprise today and the sector jumped up nicely. However this is one I am not ready to own yet mainly because of fed uncertanity in their next fmoc meeting. (it is on my close watch list)
The final one mentioned a few nice ones. ADRE (which I own) is a clone of EFA (more or less) and a whole lot cheaper to own cost wise. VWO is also an emergine markets play (I like ARDE better though) EFV is the value comparable to ADRE and especially EFA (meaning more higher yield sectors banks, utilties etc.)
I would not invest more than 5% of my total portfoilio on these "special sectors" like home builders exclusively and emerging markets and especially in a single country.
Now next year there will be more specialized etfs (one of which will be an international reit (which I would also seriously consider) and who knows what else is coming down. But my stragety is a well diversified mixture of etfs (I own 8 of them) in large, middle and small caps and a nice miture of value, blend and growth zones in addition to 70/30 mix of domestic and international areas. One thing you need is a solid core (pretty much means a balanced diversified etf) of no more than 20% and branch out from there. Something like FDM (own) or JKD would be safe here. Now some will say all you need is DIA but that mimics the market you want to BEAT the market. The choice is your and yours alone to make but do a LOT of research and always diversify and play it safe.
2006-12-27 14:42:39 · answer #2 · answered by Anonymous · 1⤊ 0⤋
ETF's, in general, provide for a group of individual stocks to be easily purchased. Since there are over 900 of them now, narrowing the choices takes some work and knowing what you hope to accomplish. A good place to start is the yahoo etf center. link attached.
2006-12-27 10:31:41 · answer #3 · answered by oakhill 6 · 0⤊ 0⤋
Foreign markets have been outpacing U.S. lately...
These are some ETF's for world mkts:
MXE...Mexico
FXI.....China
EZA....Different " emerging" markets( mostly Asia)
Check performance on yahoo and give them some consideration
Best of luck.
2006-12-27 10:51:21 · answer #4 · answered by jebediabartlett 6 · 1⤊ 0⤋
Homebuilders SPDR - XHB- chart looks great
2006-12-27 13:49:43 · answer #5 · answered by Lee K 1 · 1⤊ 0⤋
1) Yes.
2) Yes.
2006-12-27 10:32:08 · answer #6 · answered by Anonymous · 0⤊ 3⤋