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

2 ETFs to Weather Market Turbulence

NEW YORK ( TheStreet) -- After locking in the worst Thanksgiving week since the 1930s, investors returned from the holiday weekend in a buying mood, pushing the markets to gains, marked by Monday's dramatic 300-point rally. This impressive start to the week may have helped to lift sour spirits. However, I highly encourage investors to avoid getting carried away here.

When preparing a portfolio for the final weeks of 2011, conservative investors will be best off adopting and sticking to a slow, steady game plan.

Historically, December has been a positive month for the stock market. However, the outlook for the days ahead remain far from certain; although we have seen some glimmers of progress, the sovereign debt woes plaguing the European Union continue to command attention. As we have seen in recent months, these developments can cause sentiment to swing with little warning.

This type of wild back-and-forth action has tested the patience and stomachs of even the most risk-tolerant traders. Conservative investors, lacking the time and risk tolerance needed to effectively navigate potentially dramatic day-to-day market fluctuations, will likely find themselves burned if they attempt to game short-term fluctuations.

A smarter, more reliable strategy for this latter group is to refocus their attention towards the long term. Fear and greed often take control in volatile and uncertain markets environments, resulting in detrimental moves. By looking beyond the day-to-day action, this variable can be largely removed from the equation, allowing for more level-headed decision making.

There is a wide collection of ETF products investors can turn to in order to construct a proper long-term investing portfolio for any type of market environment. For example, in this type of choppy scenario, a dividend-paying equity ETF like the iShares Dow Jones Select Dividend Index Fund (DVY) or the iShares High Yield Equity Fund (HDV) can help to significantly cushion the impact of market swings.

With portfolios that span the broad market spectrum, these two funds allow investors to take full advantage of upward swings. However at the same time, they have a number of defensive mechanisms in place that will ensure a welcomed level of support in the event that fear makes a comeback and indices turn south.
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 $73.26 0.00%
DIA $164.58 0.00%
HDV $70.40 0.00%
SPY $195.00 0.00%
AAPL $110.38 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs