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

Dion's Weekly ETF Blog Wrap

NEW YORK ( TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next.

Here are three of his blogs from the past week.

Five Reasons to Own FDN

Published 7/27/2010 1:20 p.m. EDT

Here are four important, though seemingly different, headlines from the tech industry today: "Yahoo Japan Will Use Google Technology for Search"; "Ruling Lets iPhone Users Alter Phone Software"; "Verizon and AT&T Outages Upset Service in New York"; and "Citi Discloses Flaw in iPhone App."

All of these headlines appeared on various financial Web sites this morning. Investors like reading about tech, and the more connected that people get, the more concerned they get about connectivity itself.

As investors, we often concentrate on picking the best tech products and companies from a booming industry. Will the Apple (AAPL) iPhone become eclipsed by Google's (GOOG) new Android software? Will Amazon's (AMZN) Kindle or Apple's iPad make traditional magazines and books obsolete? Which company will ultimately produce the one product that will become indispensable to users across the globe?

Who doesn't want to buy shares of that company and watch them double, triple -- make up for all that money lost during the Great Recession?

In our quest to tag the next great product, however, we fail to take the necessary step of observing the overall trend. Here's one statistic that should say it all: Facebook has 500 million users around the globe. Why do people flock to Facebook? We live in an age where we need to stay connected. You can't bet against the Net , a message I've been trying to send to investors since late last year.

Rather than trying to pick and choose companies that thrive on the Internet, stick with the First Trust Dow Jones Internet ETF (FDN). Have my past blogs ( here and here ) left you unconvinced? Here are five reasons you should consider buying shares of FDN.

1. People Are Cheap, and Rightly So

After the Great Recession, consumers have tightened their purse strings. Investors learned today that consumer confidence is now at rock-bottom. Still, people need to buy essentials -- and the occasional gift -- and they want to make sure they get the best deal possible. FDN components like Google, eBay (EBAY) and Yahoo! (YHOO) help consumers find the best deal possible before opening their wallets.

2. People Are Traveling Again

Are you ready for takeoff ? Recent earnings from top airlines like JetBlue (JBLU) and U.S. Airways (LCC) show that consumers are once again taking to the skies for a much-needed (and perhaps much-delayed) vacation. Rather than shelling out the big bucks to take the family to Disney World, however, everyone's once again turning to the Internet to find the best deals. FDN components like Priceline (PCLN) and Expedia (EXPE) allow consumers to find the best deals from the comfort of their living rooms.

3. Looking For a Job? Or Reluctant to Hire?

It's equally easy to understand why Americans are obsessed with unemployment data and why private industry is reluctant to begin full-scale hiring efforts. No matter which side of the divide you're on, FDN offers exposure to companies that both help you find a job as well as help firms postpone hiring. Monster Worldwide (MWW) is one of the best-known job sites out there, while (CRM) allows companies to outsource functions like marketing without having to hire a whole new department in improving economic times.

4. Investors Are Firing Their Brokers

In the wake of the 2008 meltdown, many investors are cautiously re-entering the market -- without the help of traditional brokers. This is good news for FDN components like TD Ameritrade (AMTD) and E*Trade (ETFC), low-cost online brokerage services that appeal to do-it-yourselfers. Investors are re-entering the market, albeit slowly, and the trend of online investing continues to look promising.

5. No Need to Pick and Choose

Online firms are always in flux, and a site that's popular one day can easily be forgotten the next. Rather than getting saddled with a firm that gets stuck in the mud, choose a well-balanced fund like FDN that doesn't stake its performance on the result of any one Internet firm -- just one more way to reduce risk in a difficult environment.

At the time of publication, Dion Money Management was long FDN.
1 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
KIE $72.23 -0.26%
IAK $52.90 -0.25%
CYB $24.89 0.00%
FDN $76.60 0.67%
AET $103.95 -2.01%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs