Preaching The ETF Gospel
You’ve probably heard that old saying, "To know me is to love me." Well, I am in no way vain enough to say that about myself, but I will change that old saying in a way that does apply to me. That new saying goes, "To know me is to know I love ETFs."
That’s right, I am a self-admitted preacher of the exchange-traded fund (ETF) gospel, and my pulpit this week is the Las Vegas Money Show. This year’s gathering has been extremely well attended, and many of the people I’ve spoken with during the past few days have asked me why I love ETFs so much.
I waste no time in answering these questions with a burst of praise for the 1) low cost of ownership, 2) transparency, 3) objective management and 4) ease of ownership that you get when you invest with ETFs. I can’t tell you how good I feel about being an ETF advocate. These products are the greatest investment tools Wall Street has come up with in years, and I want everyone to know it.
If you want to find out just how many ETFs are out there, and how each one has performed during the short- and long-term, you’re in luck. Every week I post a new ETF Report at DougFabian.com.
This FREE report is a great way to help you become familiar with the various ETFs out there. You’ll also be able to see which ETFs are red hot, and which ones have been left out in the cold.
I encourage you to download your FREE copy of the ETF Report by clicking here.
ETF Talk: ‘Going Green’ In More Ways Than One
I live in California, and around here it seems like everyone’s in a green frenzy. These days you just can’t escape the "go green" marketing campaigns used to sell eco-friendly products. Even the investing public is being courted by a growing number of exchange-traded funds (ETFs) designed to let investors "go green" in more ways than one.
These funds allow you to go green by making money, but they also can help the environment at the same time. These green ETFs have been created to give investors a chance to aim for superior returns, while investing in companies that are liked by the ecologically minded. Californians like me tend to appreciate the need to take care of our environment, but you don’t have to be a tree-hugger to invest in green companies or green ETFs.
One of the newest environmentally friendly ETFs uses the ticker TAN, but you don’t need to worry about overexposure to the sun if you invest in it. The fund is the Claymore MAC Global Solar Energy. Launched during April 2008, the fund is positioned to benefit with the growth of the solar power industry. That growth has already taken place, as the solar sector grew 46% annually between 2001 and 2006. The gains in the solar industry helped solar stocks soar in 2007, and now thanks to TAN, you can get exposure to 25 solar securities that track the MAC Global Solar Energy Index.
Despite the 2007 gains seen in solar stocks, the sector still is young, and the stocks still are very volatile. But if you are comfortable enduring the risks that flow from investing in new technology, and if you don’t mind a little volatility, solar ETFs may be an option for you.
If you like forms of alternative energy other than solar, you are in luck. The following table identifies eight ETFs that allow investors to "go green."
Several clean energy and nuclear energy ETF options now are available to investors. These ETFs offer more options than just solar ETFs, and they allow you to diversify your alternative energy investments.
Although I am not currently recommending any alternative energy ETFs in any of my investment advisory services, I do think the alternative energy sector will have its time to shine. When that time comes, I know I will "go green" in a big way — first to help the environment, and second to help your wallet. (Or should that order be reversed?).
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
