Diversifying Through ETFs
I like RGI because many of the sector funds have huge positions in General Electric (GE), which I don't want to own. With PHO, I believe in the water theme as a powerful long-term investment thesis.
EnergyEnergy is a sector where I want a lot of foreign exposure. As
ConsumerFor the consumer sector, the one ETF I use is iShares Dow Jones U.S. Consumer Goods Sector Index Fund (IYK). For this client, it represents 10% of the portfolio, and the rest of the sector is made up of individual stocks. In this sector, I want mostly domestic exposure, as I feel the brand names are worth owning. While the fund is not perfect, I like the heavier weighting to Altria (MO). While its 15% weighting in Procter & Gamble (PG) may not be ideal, the concentration is nowhere near as heavy as a lot of other cap-weighted funds. However, its 1.7% yield is only fair compared to other ETFs in this sector.
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