NEW YORK (TheStreet) -- Although the recovery has been a slow one, it has been a recovery nonetheless. For consumers, the improving environment means cautiously reopening wallets and starting to spend once more.
Using ETFs it is possible to play the consumer resurgence from a number of different perspectives. We certainly have further to go on the path to recovery and as we continue to make progress investors may want to pick up exposure to one or more of the following plays.
PowerShares Dynamic Food & Beverage Portfolio
As consumers warm up to the economic recovery, one market area that will see an uptick is the restaurant industry. Investors have an opportunity to profit as consumers and their families head out of the house to dine with the PowerShares Dynamic Food & Beverage Portfolio.
PBJ provides a perfect opportunity to bank on the success of popular fast-food giants such as
The recovery in the food industry will not start with high-end steakhouses or the Four Seasons. Rather, as consumers cautiously take their loved ones out for a meal, less expensive, family-oriented establishments will more likely be the destination.
SPDR S&P Retail ETF
Black Friday may still be a couple of weeks away but investors have a great chance to take advantage of the holiday shopping season today by gaining exposure to the retail industry.
Similar to the food and beverage industry, I see retail as a region that will benefit as consumers make cautious steps back into the global marketplace.
While I have confidence that the consumer recovery will benefit retail, the past has shown that due to the industry's various facets which appeal to different types of consumers, retail can be a difficult industry to navigate from a stock picker perspective.
Using an ETF such as SPDR S&P Retail ETF, however, investors can venture into this industry in a safe manner.
XRT's holdings include more than just teen apparel companies such as
Abercrombie & Fitch
and department stores.
XRT also boasts heavy exposure to automotive firms such as
; discount chains such as
; and luxury retailers such as
This diverse exposure allows investors to access companies across the entire retail spectrum at once.
First Trust Dow Jones Internet Index Fund
Technology has been a hot sector to watch throughout the economic recovery and will continue to be as consumers recover and find ways to connect to the people and world around them. The aspect of this industry which will benefit the most from the consumer resurgence will be the firms connected to the Internet industry.
In the past,
Research In Motion
BlackBerrys and other handheld gadgets appealed mainly to the business world. However, with the popularity and accessibility of smartphones such as the
iPhone, and the growing interest in social media websites like Facebook, technology is becoming more commonplace within our everyday lives.
FDN tracks a basket of companies hailing from across the internet industry that will benefit from our growing dependence on these products.
are some of the fund's largest positions.
Also, playing off retail's strength, FDN will benefit from its large
positions as consumers increasingly turn to the Web to get their shopping done.
As we continue along the road to recovery I foresee the consumer being an extremely exciting component of the economy to watch. Using funds such as PBJ, XRT, and FDN investors can get a front row seat to the consumer recovery.
Written by Don Dion in Williamstown, Mass.
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At the time of publication, Dion Money Management was long First Trust Dow Jones Internet Index Fund.
Don Dion is president and founder of
, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.
Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.