3 ETFs Every Investor Should Consider Owning

Matt Thalman - INO.com Contributor - ETFs


Every investor, no matter age, investing experience or portfolio balance should consider putting a large amount of their investable assets in one of these exchange traded funds.

For the majority of investors, the time and energy required to pick individual stocks for their own portfolio's is too much, not to mention the fact that individual stock picking can just be downright overwhelming. The amount of available information and decoding what it all means is very time-consuming and confusing. Plus, the idea that all your hard earned money is tied up in just a few stocks, which at any moment could dramatically lose value, is very frightening.

The best way to avoid the majority of these problems is by simply buying one or more quality exchange traded funds. ETF's offer investors with a very low cost, diverse portfolio and they don't require investors to follow them on a daily, weekly, or even quarterly basis. The right ETF's are really the closest things an investor can find to a "buy and forget about" investment.

Today I would like to talk about three of my favorite ETF's that any investor, no matter their age, income level, size of investment portfolio or investing experience, should consider owning. So let's take a look at what they are. Continue reading "3 ETFs Every Investor Should Consider Owning"

The Hot Utilities Sector Needs Risk Management

Robert Boslego - INO.com Contributor - Energies


Because the yield in fixed income has remained so low for so long due to the Federal Reserve maintaining low interest rates, investors have transitioned to utilities because they want dividend yields. As a sector, utilities are up 21.96% year-to-date, 24.7% over the past year and provided an average return of 15.78% per year over the past three years.

Graph of XLU Prices

To participate, the exchange-traded fund (ETF) Utility Select Sector SPDR ETF (PACF:XLU), tracks the price and yield of the Utilities Select Sector Index. The largest holdings of XLU are as follows: Continue reading "The Hot Utilities Sector Needs Risk Management"

GLD vs. SLV: Investors Favor Less Successful Gold

Aibek Burabayev - INO.com Contributor - Metals


Today I would like to share with you an analysis of precious metals ETFs. The goal of the study is to identify the correlation of price moves in both gold and silver with the demand for their ETF shares, represented by an appropriate precious metals holdings change. Below the chart you will read some interesting findings.

Chart 1. Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support

Gold, Silver and ETFs (Q/Q percent change): Silver Rises Without ETF Support
Chart by Aibek Burabayev, data source: spdrgoldshares.com; ishares.com

In the first quarter of the last year, we can see that investors were betting on a bottoming gold price with a 4% rise in SPDR Gold Trust (PACF:GLD) holdings despite the 1% fall in price. It’s interesting that at the same period, investors, on the contrary, cut their silver ETF holdings despite the rising silver price; it looks like they used the ‘sell silver on spike’ approach to gain on metals correlation. It’s amazing! But they were right shorting silver as it fell in three consecutive periods exceeding gold’s losing streak. Continue reading "GLD vs. SLV: Investors Favor Less Successful Gold"

3 ETFs To Play The Housing Boom

Matt Thalman - INO.com Contributor - ETFs


The true pure-play housing stocks have been on a tear lately, as new home construction picks up and industry insiders believe the market could get even hotter as another rate hike is likely in the fall.

In April data indicated that new home sales grew at the fastest rate in eight years. Furthermore, during the earnings conference call for homebuilder Toll Brothers' (TOL), the companies Chairman Robert Toll said that a rate increase could actually help continue spurring demand.

“What you have with a price increase is an increase in demand created because the price has gone up, which by the way may come to us in the summer months this year,” he said. “If the Fed goes up and the mortgage rates go up an eighth or a quarter, it probably means price increases are coming soon, which spurs demand and spurs action. So it's too early yet to tell, but we could be onto something good.”

If higher rates or just the threat of higher rates is going to help the housing industry than now is the time to buy. Over the last few weeks, the Federal Reserve's meeting minutes and a number of Fed members have hinted that rates will likely increase in the fall. To me, that sounds like at least a threat, if not a clear sign that higher rates are coming soon.

So, what should you buy to profit from a strong housing industry? Continue reading "3 ETFs To Play The Housing Boom"

How You Can Profit From Those Annoying Political Campaign Ads

Matt Thalman - INO.com Contributor - ETFs


With the Presidential Election just nine months away, now is a good time to start considering how 'you' the average American can benefit from this once every four-year circus event. I recently spoke about how it's likely firearm stocks could see a boost from this event, today I would like to discuss another industry likely to see revenues increase.

But, before we jump into how you can make money this election season, let's take a look at what is making this all possible.

During the 2008 Presidential Election more than $7 billion were spent according to Borrell Associate's estimates. In 2012, election spending was estimated to hit $9.8 billion. But as of now, the 2016 election cycle is expected to see $11.4 billion spent. Now these figures are not just for spending on Presidential campaigns, but all political office's votes will be held for this year. Continue reading "How You Can Profit From Those Annoying Political Campaign Ads"