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!

Funds for Auto Industry Bulls

Stocks in this article: F GM TM IYK PALL FSAVX

NEW YORK ( TheStreet) -- After an October for the record books, the markets kicked off November on a choppy note. Approaching the end of the year, investor fears have been rekindled, with the European crisis making its way back into the headlines.

While the sour start to the month may be enough to drive some investors back towards safe havens, I encourage investors to avoid shunning the markets entirely.

The ongoing saga involving Greece, Spain, Italy, Germany, and other members of the euro monetary bloc will continue as we move ahead. As we have seen, however, in regions outside of the EU, hints of strength are shining through.

The automotive industry is an example of one sector that has managed to stay buoyed even in the face of mounting macroeconomic headwinds. This past week investors were greeted to strong news on this front; in October, U.S. sales of new vehicles rose to the highest levels since February

According to a report from Reuters, some of the strongest performers last month included Volkswagen, Chrysler, and Nissan. Sales from Ford (F) rose 6%, falling in line with expectations.

The past month's strong car and truck sales numbers indicate hardiness across global auto manufactures. In addition, it highlights the impressive resilience of the consumer. Even in the face of high unemployment and a seemingly endless deluge of negative news, individuals remain willing to spend on these large purchases.

Looking ahead, the auto industry may be a region of interest among those looking to target pockets of market strength. Unfortunately for ETF investors, gaining exclusive access to companies like Ford, General Motors (GM) and Toyota (TM) has been notoriously difficult.

In 2011, two fund companies have stepped up to the plate to unveil ETFs designed to allow investors to target the auto industry. However, in their opening months of trading, neither the Global X Automotive ETF (VROM) nor the First Trust NASDAQ Global Auto Index Fund (CARZ) have managed to gather the type of following necessary to be considered adequately liquid. As of the start of November, both funds have failed to see their average daily trading volume breach the 2,000 mark.

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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