Material Shortcoming in Sector's ETFs

Clients have exposure to chemicals through either Dow Chemical or XLB, gold through Anglo Gold Ashanti(AU) and timber with Plum Creek Timber. Some clients capture the emerging market, mining aspect of the sector with Rio.

This blend has worked well over the last couple of years: Whether or not it will work in the future, I offer it as a detailed example of how to build diversification within a sector using ETFs as part of the strategy, as opposed to blind reliance on the product.

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