NEW YORK ( TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next. Here are three of his blog posts from the past week:
If the extent of the fraud suggested by this investigation turns out to be accurate, the SEC probe could conceivably impact the U.S.-listed Chinese firms at the core of PGJ. This kind of investigation could cause problems for PGJ's pricing and construction. Trading value could be negatively impacted, and investor fear could drive PGJ's trading value to a discount over the course of the investigation. Until investors learn more about the extent of the SEC probe, it may be wise for ETF investors to avoid ETFs that track U.S.-listed Chinese firms. It is less likely that ETFs that track Chinese ordinaries (stocks traded at exchanges in China and Hong Kong) would be impacted by this type of investigation. It is important that investors check their portfolios and learn the difference between these two types of Chinese ETFs. While both types of these Chinese ETFs trade on U.S. exchanges, the big difference is that some of these ETFs track Chinese "ordinaries" (stocks traded on exchanges in China and Hong Kong) while some track U.S. -listed Chinese ADRs (Chinese companies with a dual listing on American stock exchanges). PGJ falls into the latter category, and the popular iShares FTSE China 25 Index Fund ( FXI) the former.
Uncertainty about state and National debt, paired with increasing confidence in equity markets, should continue to attract cash to higher-yield investment choices in the months ahead. While a relatively balanced pick like JNK or the more conservative HYG could be a good pick for a small portion of your fixed-income portfolio, I also encourage investors to consider well-balanced, highly-traded dividend picks like the iShares Dividend ETF ( DVY). Predictable yield and income will continue to be an important theme as we move into 2011, and investors should exercise caution in selecting ETFs that are in line with their objectives. At the time of publication, Dion Money Management was long DVY and HYG. --Written by Don Dion in Williamstown, Mass. >To contact the staff member responsible for this article, click here: Ross Snel. >To follow the writer on Twitter, go to http://twitter.com/dionmm. >To submit a news tip, send an email to: firstname.lastname@example.org.