NEW YORK (
) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his
blog, anticipating which ETFs will be in play next.
Here are three of his blog posts from the past week:
An ETF for Action in Canadian Energy
Published 12/17/2010 10:59 a.m. EST
Canadian energy firms are set to cash in on the country's rich natural resources and profitable deals overseas. Today, France's
announced that it would spend $1.8 billion in a new partnership with Canada's
in an effort to cash in on the country's rich oil sand.
The French aren't the first to increase their investment in Canadian resources. Asian investors have already plowed funds into tarry deposits, hoping to make a foothold in a new source of energy for their rapidly emerging economies.
U.S. investors can also tap into Canadian energy through the
Guggenheim Canadian Energy Income ETF
, a well-balanced fund that tracks 26 firms in the Canadian oil and gas sector, including oil-sands resource producers and royalty trusts. Top holdings in the fund include the Baytex Energy Trust, Canadian Oil Sands Trust, Enerplus Resources and Vermilion Energy.
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ENY is trading slightly lower this morning, but Total's key investment should help to lift the fund in the sessions ahead. Investors should consider ENY for a longer-term investment in our northern neighbor's energy potential but should be mindful that the fund is closely tied to oil prices.
At the time of publication, Dion Money Management had no positions in stocks mentioned.
Coal for Your Stocking
Published 12/15/2010 10:19 a.m. EST
As Christmas approaches, many American children will be hoping to avoid a lump of coal in their stocking that would signal that they've "been bad" during the year and undeserving of other stocking treats. Investors, however, should welcome a stake in coal, and seek out the
Market Vectors Coal ETF
if they're not looking to get their hands dirty.
bullish on KOL for some time now, and I continue to think that coal companies will be one of the hottest investments this winter. Today, top KOL component
reported better-than-expected earnings and sailed higher in pre-market trading. The company's executives noted that better-than-expected numbers and aftermarket sales had been largely driven by increased demand in North America.
Joy Global isn't the only company betting that this trend will continue, and the company's report notes that fourth-quarter bookings rose by 48% as mining firms across the globe hike capital expenditures to keep up with the demand. Joy Global expects capital expenditures to rise another 15% to 20% in 2011.
Joy Global comprises 7.71% of KOL's underlying portfolio, so the positive news from today's earnings report should help to boost KOL in the short term. Longer-term investors should see Joy's success as another sign of health from a strong sector. KOL's underlying portfolio also includes coal industry heavyweights such as
China Shenhua Energy
China Coal Energy
At the time of publication, Dion Money Management was long KOL.
Health Care Drama Stays in Play
Published 12/14/2010 5:14 p.m. EST
The Justice Department may be repealing the anti-Obamacare ruling
by U.S. District Judge Henry E. Hudson yesterday, but the decision seems to be having an impact on investors. Health care ETFs rose to the top of the ETF universe today, with the
iShares Dow Jones US Medical Devices
iShares Dow Jones US Healthcare Providers ETF
SPDR S&P Pharmaceuticals ETF
iShares Nasdaq Biotechnology ETF
grabbing 1.15%, 1.14%, 1.11% and 1.09% gains respectively.
Modifying, repealing or tossing Obamacare would be a lengthy process (a matter of logistics here, not politics), but investors have both short-term and long-haul opportunities to play the buzz using these sub-sector funds. It's a pretty good bet that Hudson's controversial ruling will be in the headlines for rest of the week, and IHF is a good way to play any short-term lift that providers get as a result of the questions being raised. IHF's top 10 components include health care heavyweights like
If you're bullish on the health care industry for the longer-term, however, it's definitely worth considering a combination of these sub-sector funds to get a broader view of the industry. If you're considering a biotech fund, however, I'd use the
First Trust NYSE Arca Biotechnology ETF
over IBB because of better balance among its top holdings. IBB is more liquid if you're looking to make a large, short-term trade, but FBT has broader, better-balanced exposure if you're looking to hold the fund for a longer period of time.
At the time of publication, Dion Money Management was long IHE.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.