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!

3 ETFs Bank on Industrial Recovery

Stocks in this article: SLX KOL CUT WOOD BTU CNX

NEW YORK ( TheStreet) -- The past few weeks of tumultuous action have weighed heavily on investors of all risk tolerances. Although euro-concerns and other macroeconomic issues will likely continue to keep many from attempting to reenter the global marketplace, there remain individuals who may be ready to bet on strength.

If the developed market can get itself back on the healing path, and emerging countries can return to strength, growth-correlated industries such as coal, steel, and timber could be attractive destinations for aggressive investors.

Using ETFs, it is possible to gain concentrated exposure to these market slices.

Infrastructure has become a major focus of the Obama administration as evidenced by the president's proposed plan to create a national infrastructure bank. As developed nations turn their attention to their aging bridges and roads and emerging nations work to further develop their own public works projects, steel will be sure to be a major ingredient. Investors can target the companies responsible for the production of this alloy using the Market Vectors Steel ETF (SLX).

SLX's index is unique in that it spreads its assets across both steel producers and iron-ore miners. By placing firms like Posco (PKX) and ArcelorMittal (MT) alongside Vale and Rio Tinto (RIO), the fund is well suited to handle a wide variety of industry-related scenarios.

As I explained in this week's video (insert video link), coal will be a commodity to keep an eye on in the event that the global markets can shake off this current bout of jitters. In recent years, we have watched as nations like China and Brazil have evolved into leading economic growth engines. Powering their respective expansions will require massive amounts of energy. Coal will likely represent a major slice of this energy demand.

The Market Vectors Coal ETF (KOL) targets a diversified collection of domestic and international coal producers, equipment providers, and power generators. Companies comprising the fund's top positions include China Shinhua Energy, Consol Energy (CNX), Peabody Energy (BTU) and Bumi Resources.

Timber may be worth keeping an eye on in the event that the global marketplace turns higher as well. As we learned from Tuesday's sub-par housing starts report, the residential real estate market continues to face substantial headwinds. This will likely continue to weigh on the broad timber and forestry industry.

1 of 2

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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