Thursday, June 15, 2006

Making ETFs work for you

Making ETFs work for you by investing in what you want. Take todays market for example, a lot of people are very hesitant an d don't know what to invest in. Well, this is where ETFs can really step into your portfolio, by a little extra protection since they are one diversified, two they are funds not just one individual stock, and thirdly you can really specialize in certain sectors and areas that may be volatile in individual stocks.

Here are some real ways that ETFs can be inserted into your portfolios and making them whatever you want:

Maybe your want something international, maybe try looking into iShares MSCI GERMANY (AMEX:EWG) or iShares TR FTSE INDX (NYSE:FXI)

Say you want income from Dividends, a great looking ETF for this is iShares Down Jones Select Dividend Index (DVY), and Vanguard's REIT VIPER (VNQ).

Maybe you want to protect yourself from inflation, maybe try iShares Goldman Sachs Natural Resources Index (IGE) and iShares Lehman TIPS Bond (TIP).


Along with these roles ETFs can also, play that filler in your portfolio. Let's just say you fell that you have just about everything that you wanted covered in your complete portfolio, but your have a lot of one area, but you just want to cover everything. Well, ETF could be a great play in this factor. So make the EFTs that filler for you to completely diversified to your likes. Even if you like investing in individual stocks, ETFs may be able to play a role in your portfolio. Say if you have a lot of the large cap stocks covered, why not fill that gap with a small cap ETF to fully fill that portfolio. Just one more way of making ETFs work for you!

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