This Day On The Street
Continue to site
ADVERTISEMENT
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

Play Foreign Energy for the Long Term

For example, anyone bullish on Norway's fundamental and fiscal health could use the iShares MSCI Norway Capped Investable Market Index Fund (ENOR), which has a 51% weight to energy. Obviously a 10% portfolio weight in ENOR would provide 5.1%, out of the targeted 11%, for the energy sector.

A similar 10% weighting in the Index IQ Canada Small Cap ETF (CNDA) would account for an additional 2.7% weight for energy. Again, in order to buy CNDA one must be favorably disposed to the country's prospects and the role that oil exports will play in those prospects.

From there the exposure could be rounded out with the Global X China Energy ETF (CHIE). China does face an economic slowdown along with the consequences for building too much housing supply in relation to what the demand is likely to be but energy consumption should keep increasing slowly and so buying this fund requires believing in that part of the China story.

The above combination is of course just an example but the bigger point is the extent to which individual investors can isolate very specific market segments to create potentially sophisticated portfolios without necessarily taking on individual stock risk.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

2 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
IPW $21.11 -1.22%
CNDA $18.63 0.22%
ENOR $25.54 -1.20%
AXEN $52.67 0.90%
AAPL $132.54 0.88%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs