This Day On The Street
Continue to site
ADVERTISEMENT
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 ETFs For Mega-Cap Exposure

NEW YORK ( TheStreet) -- A combination of factors is helping to boost the popularity of large, industry behemoths like General Electric (GE - Get Report), Exxon Mobil (XOM - Get Report), International Business Machines (IBM), and Procter & Gamble (PG).

Although mega caps such as these are often viewed as boring, this slice of the marketplace could prove attractive in the months ahead.

For one, companies in this mega-cap segment appear noticeably cheap. This week, both the Economist and Barron's cited an analyst report from Morgan Stanley that noted that, relative to the broader market, mega-cap companies are currently at their cheapest levels in a quarter century.

Secondly, the Dow's impressive rally over the past few weeks is helping to thrust this class of firms into the spotlight. Over the past month, this large-cap dominated index has managed to pull ahead of small- and mid-cap indices such as the Russell 2000 and the S&P 400 Mid Cap Index.

At this time, it's still too early to definitively state that the business cycle has shifted in favor of large caps and mega caps, and it is clear that the Dow still has ample ground to cover in order to catch up with these two indices. However, it will be interesting to see if, in the short term, this trend will persist.

In the past, I have pointed to mega caps as an attractive corner of the marketplace for cautious investors looking to either take initial steps back into equities, or to protect against the threat of market turmoil.

As we have been reminded during the first half of the year, the global marketplace is vulnerable to turmoil, including the political unrest in the Middle East, the natural disaster in Japan and the recent commodity shake-up. Although I remain confident that we are on the road to recovery, I am also aware there will be hurdles ahead.

There are a number of ETFs available that provide investors with ample exposure to industry leaders in the United States and across the globe. Unfortunately, however, many of these funds have struggled to gain a suitable following.
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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AIA $42.16 -0.24%
OEF $87.25 -0.81%
IOO $71.16 -0.73%
AAPL $112.77 -0.46%
GE $24.81 -1.40%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs