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

Managing Safe-Haven ETFs

NEW YORK ( TheStreet) -- It is not uncommon to witness volatile market action during shortened trading weeks and this week is no different. After a dismal Monday overseas, U.S. investors returned from the Labor Day weekend to find heavy losses.

In recent weeks, I have highlighted a variety of safe havens investors can turn to in order to seek shelter from the economic storms. In the days ahead, many of these destinations will continue to offer welcomed relief.

It is crucial to note that not all market shields are created equal. Before diving into any position, it is important to do your homework.

Although it struggled slightly during the final weeks of August, gold appears to be on track to revisit previous record highs. As in the past, I encourage investors to view physically-backed products like iShares Gold Trust (IAU) and SPDR Gold Shares (GLD) as long-term portfolio staples rather than short-term trades.

Other gold and precious metal-related funds such as iShares Silver Trust (SLV) and Market Vectors Gold Miners ETF (GDX) may hold promise as these shiny commodities find fans. However, due to the magnified volatility associated with these products, they are best set aside as short term tactical plays.

Equities have run to trouble as weak market action drives investors out of risky asset classes. Dividend-paying stocks, however, remain an attractive corner to keep watch on. The strength of funds like iShares Dow Jones Select Dividend Index Fund (DVY) and SPDR S&P Dividend ETF (SDY) is two-fold: Dividends will provide investors with welcomed comfort during shaky periods while equity exposure will help prepare a portfolio for the market's eventual turn-around.

Income-bearing equities have managed to outpace general broad market indices by a comfortable margin throughout this recent bout of market turbulence.

Like gold ETFs, investors would be best off viewing dividend ETFs like DVY and SDY as long-term, core portfolio holdings.

While asset classes like gold and dividend stocks continue to hold up as attractive long term positions, there are some safe havens investors should view with hesitation. The Swiss franc is a prime example. GAs the European debt crisis has remained in focus, the Swiss franc has become a wildly popular destination amongst jittery investors. Fleeing the troubled euro, the CHF has surged in strength, breaking records against other currency players.
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
DVY $74.22 0.00%
GLD $118.36 0.00%
FXF $98.70 0.00%
IAU $11.94 0.00%
AAPL $93.99 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs