ETF Review: Transports and Health Care

This column was originally published on RealMoney on Feb. 7 at 1 p.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

I have become a big believer of the power of the ETF due to the lessening of risk. It's exciting to be able to play many of my favorite sectors but not have to load up on individual stocks and deal with the occasional blowup that can ruin anyone's portfolio. Those are bound to happen to everyone at some point in time, but if you can reduce the number of individual stocks you own and transfer those plays to their representative ETFs, you are taking away a reasonable amount of the risk from your portfolio.

Let's face it, the stock market is a game of risk/reward, but in addition to that, it is a game of fear and greed. For those of us who like to remove the fear part from our financial lives, playing the ETFs of the world can be a great way to participate yet still have fun. Sure, you won't get rich, but you'll be in the game and, if you play it appropriately, still make a decent dollar over time.

Because of all this, I thought I would discuss a few of the ETFs that I am playing for my subscribers due to the tremendous demand for them. In my next few columns, I will cover several aspects of these trades, including entry, stop placement and the potential amount a stock might run. Let's look today at the iShares Dow Jones Transportation Average Index Fund (IYT Quote) and the iShares Dow Jones U.S. Healthcare Sector Fund (IYH Quote). ...