Most investors are happy to have turned the page on 2008. Now money managers are looking for ways to help them bounce back in the new year. Here are some managers' top ETF picks for 2009 and beyond.
Maximizing utility: Alan Rosenfield, managing director and founder of Harmony Asset Management, is anticipating adversity for the market in 2009. "We like the long term, but are nervous about the shorter term," he says. "I think we might see a lot of sideways action in the months ahead."
One of Rosenfield's top picks for the next 12 to 18 months is the Vanguard Utilities ETF (VPU). This ETF has 84 holdings and a yield of 3.7%. "We think it's cheap, has a good dividend yield and it's defensive," he says.
Although the potential for inflation has taken a backseat to the slumping economy, Rosenfield believes inflation could emerge as a byproduct from a spike in the nation's money supply. "As an investor, you have to be very careful about what you are buying," he says. "Over the long term, you have to be concerned about inflation."Rosenfield says the PowerShares DB Agriculture Fund (DBA), which now trades 39.8% below its 52-week high achieved in late February, will be a prime beneficiary if inflation quickens. Bullish on agriculture: Tony Welch, a portfolio manager at Sarasota Capital Strategies who specializes in ETFs, is also bullish on the agriculture front. Welch recently took a long position in the Market Vectors Agribusiness ETF (MOO). "Agribusiness is definitely a long-term trend," he says. "A lot of the stocks in this ETF were beaten down by hedge fund liquidations so there is a lot of value in it now."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV