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
TheStreet Open House

ETF Plays for 2010

NEW YORK (TheStreet) -- As 2009 is coming to an end, we have watched the equity markets rally by over 30% and gold hit all-time highs. Additionally, signs of a global economic recovery have emerged and the future of the biotechnology, energy and materials sectors remains bright.

Biotechnology

Despite much uncertainty in the massive health care reform bill that is making its way through the legislative process, it is a safe bet to say that some sort of the bill will be passed. With this in mind, heavy regulation and tax bills will likely hit Big Pharma, but not the biotech sector. As a result, massive amounts of cash could flow into biotech. Additionally, not all biotech companies have rallied from March lows and valuations for some are relatively still reasonable.

An ETF to watch is the PowerShares Dynamic Biotech & Genome (PBE), which is up 51% from its March low of $11.03 and closed at $16.65 on Tuesday.

Energy

As the world's economy is expected to continue to rebound through 2010, the demand for energy, in particularl oil, is likely to increase. China, India, Brazil and the U.S. are all expected to show economic growth in 2010, which will spur demand for energy, while production is expected to remain steady. They key place to focus on in the energy sector is exploration and production.

An ETF to watch here is the iShares Dow Jones US Oil & Gas Exploration Index (IEO). IEO is up 80% from a March low of $30.17 to close at $54.30 on Tuesday.

Materials

Much like the energy sector, as global economies start to rebound and expand, basic materials will be in demand. Many countries, like China and the United States, are focusing on improving infrastructure which will likely spur the demand for steel, aluminum, copper and other building materials. An ETF to watch here is the iShares S&P Global Materials (MXI), up 43% year to date.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs