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

4 ETFs to Watch When the Fed Speaks

NEW YORK ( TheStreet) -- It's no secret that the bull market over the last several years has been fueled by the loose monetary policies and aggressive quantitative easing of the Federal Reserve. Investors around the globe closely monitor every word of Fed Chairman Ben Bernanke's speeches in order to divine the next big opportunity in their investment portfolios. Often his remarks have an immediate and profound effect on major markets, which is why it is important to pay close attention to key segments of the economic landscape.

From my own experience watching the markets and trading for my clients' portfolios, I have often seen big moves made in a very short time, based on even the hint of a policy shift from the Fed. These swift swings can be either positive or negative for your portfolio, depending on your asset allocation and response to change.

By monitoring these four ETFs you can get ahead of the curve and potentially avoid any long-term pitfalls on the road to prosperity.


The first ETF to which I always pay attention whenever there is breaking news is the SPDR S&P 500 (SPY). This well-known bellwether tracks the 500 largest domestically traded public companies and, as one of the most widely held and actively traded ETFs in the world, it is an excellent barometer for the health of the stock market.

Hedge funds, banks, professional money managers and everyday investors trade hundreds of millions of shares of SPY and volume explodes whenever there is a major global news event.

It pays to have SPY on your watch list and monitor it regularly for big volume swings or price moves. This often can precede a broader change in the direction of the market and may signal that you should adjust your portfolio accordingly.


My favorite ETF for monitoring the bond market is the iShares Barclays 20+ Year Treasury Bond Fund (TLT). This fund is made up of long-duration U.S. Treasury bonds and often times makes very volatile moves when the Federal Reserve signals a change in its interest-rate agenda.

Bonds furthest from their maturity date are typically most susceptible to changes, which is why this ETF can move so rapidly. Think of TLT like the tip of a dog's tail, the point that is going to move the farthest whenever he wags it.
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
GLD $123.65 0.00%
SPY $206.33 0.00%
TLT $129.38 0.00%
UUP $24.10 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs