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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lower-Beta Stock ETFs for a Safer September

Stocks in this article: XLU FDL PPH XLP SDY VHT

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( ETF Expert) -- How many articles are going to emphasize how bad the month of August treated investors? The fact that U.S. stocks in the S&P 500 shed -5.7% speaks for itself. On the other hand, the reality that August had been down as much -13.3% eight trading days earlier is far more telling.

Ironically, you still read how the U.S. credit downgrade is to blame for the troubles. If that were true, the iShares 7-10 Year Treasury Bond Fund (IEF) wouldn't have gained 3.3% in August. In truth, U.S. Treasuries are still safe haven investments -- at double-A or at triple-A.

Nevertheless, the S&P action did highlight what many Americans already feel -- a severe lack of confidence in governance. And that's not all we feel. We have grave doubts about (a) the political process, (b) the safety of our financial institutions, (c) the value of our homes and (d) the creation of new jobs. Downgrade, clown-grade.

If there's one area that investors seem to have some faith (maybe too much of it), it's with Bernanke's Fed. QE1 reduced the shock of the Great Recession, while QE2 helped reflate asset prices to multi-year highs. The fact that the Fed will seriously consider some form of QE3 in a 2-day September meeting gave a portion of the investing community reason to buy the August sell-off.

The question is, will more bond purchasing and subsequent dollar devaluation be as effective on the third go-around? Put another way, 91,000 private sector jobs is weak. Yet if the Friday jobs report doesn't show much slower job creation and an uptick in unemployment, don't count on the Fed for extraordinary stimulus measures.

In the meantime, this market still belongs to traders who live and breathe on the headlines. September may be every bit as volatile and every bit as unpredictable as August.

In the table below, I have delineated some of the more prominent ETF winners and losers from August. In bold, I have identified investments to consider if you feel you have too much cash under the mattress.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

Select the service that is right for you!

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • 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