This Day On The Street
Continue to site right-arrow
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

5 Stock ETFs for the 2011 Global Economy

NEW YORK ( ETF Expert ) -- Many of the major financial publications and news services are clamoring for 2011 predictions. I've already fielded requests from WSJ, Dow Jones and Investor's Business Daily.

It doesn't seem to matter that I am not, nor have I ever been, a "buy-hold-n-hoper." The media have deadlines. They want my picks. And calendar-year prognosticating is a time-honored tradition for capturing more readers.

Okay... so I play the game. In fact, I played it so well in 2010, my " Lazy 7" ETF Portfolio dramatically outperformed the S&P 500.

At this point, I'm ready to give a number of ETFs that should benefit from peering into my crystal ball. In fact, I'll give 5 ETFs that I like quite a bit, stop-loss limit orders notwithstanding.

However, if you're looking for the "Lazy 2011 Portfolio, you'll need to wait until Dec. 31. A portfolio requires diversification through non-correlating assets, especially if it has to be held for 12 months. So for now, let me offer 5 ETFs that should benefit from a global macro-economic perspective --not as a portfolio, but as a list. (Note: In essence, this is the same list that I am providing to the financial journalists in the mainstream media.)

1. Market Vectors Coal (KOL)

2. SPDR Oil/Gas Equipment Services (XES)

3. iShares DJ Technology (IYW)

4. Global X China Consumer (CHIQ)

5. iShares Chile (ECH)

The sovereign debt crisis in Europe, Japanese deflation and pockets of economic uncertainty in the U.S. (e.g., housing, unemployment, etc.) will lead developed economy central banks to maintain "loose" monetary policies. In essence, this means the mature economies will continue endeavoring to "reflate" to support the global industrial cycle. As long as the Fed and others are reflating, early business cycle stock ETFs should be the biggest beneficiaries, from Market Vectors Coal (KOL) to SPDR Oil & Gas Equipment Services (XES) to iShares DJ Technology (IYW).

Of course, the real growth is in the emerging markets... and Chinese consumerism will carry the lion's share of world GDP growth. Yet China has been tightening monetary/fiscal policy to keep inflation in check. I believe they will be successful, but in so doing, it will give fits and starts to emerging market equities. I still like Global X China Consumer (CHIQ) as a potential stock ETF for the theme.

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
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!
CHIQ $13.91 1.80%
KOL $13.32 0.30%
ECH $40.94 1.60%
XES $25.35 0.80%
IYW $104.40 -0.53%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs