This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Diversified ETFs

If you were expecting that the list of highly diversified ETFs would be dominated by large-cap funds, you are in for a surprise. The largest grouping on the list, with four representatives, is the small-cap category of funds. Two of the small-cap funds earned grades from Ratings in the "B" range, which equates to a "buy" recommendation, while the remaining two were "sells" in the "D" range. The differences are a result of variances in volatility, which, along with total investment return, is a factor in determining the ratings grades.

Two of the diversified mid-cap funds earned grades in the "C" range for "hold" recommendations, and one climbed into the "B" bracket. The lone large-cap fund held a C-plus, or "hold" grade.

The roster of sector diversification champions really gets interesting when looking at the two members with investment focus extending outside the U.S. As for the single truly foreign (no U.S. holdings) member of the group, one might wonder how a fund with only 50 holdings could be considered diversified. Yet the European holdings of ETF Dow Jones Stoxx (FEU) were able to touch each of the 12 sectors needed to qualify for the list.

Whereas eight of the funds on the roster invest most heavily in the financial sector and one in consumer cyclicals, the Stoxx 50's biggest sector is the "miscellaneous" grouping, which by itself implies additional diversification.

While most of the lightest holdings for the group are in transportation, communications services or the miscellaneous sector, the ETF's lightest sector is energy, which would seem to be a rather good sector to avoid considering the recent drop in energy prices. The fund rewarded its investors with a total return of 26.67% in 2006, top of our funds list by a comfortable margin. That helped it earn a B-minus "buy" grade from Ratings.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JKG $145.55 0.14%
FEU $30.26 -0.46%
IOO $71.21 -0.11%
IWM $110.26 -0.40%
AAPL $93.24 -0.41%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs