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

3 Industry ETFs Nobody's Talking About

Throughout September, a monster rally for stock assets captured most of the headlines. Nevertheless, commodities, corporate bonds, high-yield bonds, foreign currencies -- heck, most real estate investment trusts -- are all logging 52-week highs.

The "all-assets-are-climbing" phenomenon goes hand-in-hand with the Fed's implied use of additional quantitative easing. Simply stated, the Fed's planned monetary stimulus to buy U.S. treasuries and/or mortgage-backed securities yet again, even while interest rates are already at an effective rate of 0%, further devalues the U.S. dollar; not surprisingly, the ultrastimulative monetary policy entices investors to buy anything other than the U.S. dollar -- from the least risky to the most risky.

It follows that it may not make all that much sense to talk about industry ETFs that are flying under the radar. After all, if everything goes up, why bother trying to set your portfolio apart?

Well, the simple answer is an effort at minimizing duplication and excessive risk. In other words, just because Thailand (THD), Turkey (TUR), and Indonesia (IDX) are raking in the bucks, you probably shouldn't hold every single-country emerging-market ETF; these investments are highly correlated, and they are further out on the risk spectrum than many may realize.

So here are three subsector ETFs very few people have mentioned lately:

PowerShares Global Listed Private Equity (PSP) This ETF was one of the worst casualties of the financial collapse. Its ties to the crisis didn't exactly help. Still, the business of "buying out" public corporations or acquiring distressed assets or lending capital has had a renaissance of sorts.

This is an exchange-traded investment that has risen 170% off of its March 9, 2009, lows. Yet unlike other casualties of finance, such as the KBW Bank Index (KBE), an investment that has been in a downtrend since April. PowerShares Global Listed Private Equity (PSP) is experiencing a technical uptrend since most U.S. stock assets bottomed in early July. PSP also boasts a SEC 30-day yield in the area of 3%. (Year-over-year, PSP is up about 5%, whereas KBE is down about 4%.)
1 of 2

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
IGV $98.81 0.00%
PSP $10.24 0.00%
XPH $40.86 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs