It's one thing to see the 44th economy in the world (Greece) bob like a wine cork in the Mediterranean Sea, yet quite another to witness the economies of Spain and Italy crack. (Note: An ETF enthusiast must know
how to implement stop-limit orders and hedges
to protect his/her portfolio from a recession-based bear.)
Like Greece, Spain and Italy will have to ask for ECB bond support as well as negotiate some measure of austerity. From my vantage point, these are risks that do not bode well for smaller company stock ETFs.
Rather than chase, it seems exceptionally more prudent to stick with the established companies with the strongest balance sheets and long histories of paying out dividends. I am sticking with many of the very same assets that have defined my client portfolios in 2012.
They include dividend ETFs like
Vanguard High Yield Dividend
Vanguard Dividend Growth
. They also include income producing exchange-traded funds like
Guggenheim Multi-Asset Income
iShares High Yield Corporate Bond
and the more recent
Market Vectors Preferred Ex Financials
This article was written by an independent contributor, separate from TheStreet's regular news coverage.