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Best ETFs To Buy For 2010

12 October 2009 No Comment

If we look ahead to 2010, many economists are expecting the economy to continue to get better.  Whether you buy into a full U.S. recovery or that certain areas of the economy will do better than others, there are some ETFs should consider.

Inflation / Weak Dollar Plays

When it comes to the inflation story, I’m a believer that it will happen in the future.  With this, we can expect rising commodities especially gold.  I strongly recommend that investors have at least some exposure to gold, and a lot of exposure to gold if you believe that gold is going much higher.

Gold & Silver ETFs:

  • SPDR Gold Shares (GLD)
  • SPMarket Vectors Gold Miners ETF (GDX)
  • iShares COMEX Gold Trust (IAU)
  • iShares Silver Trust (SLV)

Oil ETFs

Another area that will do well in a time of inflation is the oil sector.  Also contributing to the oil picture are the supply & demand fundamentals.

Oil ETFs:

  • United States Oil (USO)
  • Oil Services HOLDRs (OIH)
  • Ultra Oil & Gas ProShares (DIG)

Technology

As of writing this post (September 30, 2009), the technology sector has had an incredible run in 2009.  Names such as Google and Apple are up 100% from earlier this year.  While I wouldn’t recommend buying much at current level, the technology sector is still an interesting play moving forward assuming attractive entry points.

As Corporate America continues to recover and balance sheets continue to become healthier, many people think that corporations will be investing their cash into technology rather than jumping to hire people.  While this doesn’t help those that are unemployed, it does help companies that sell technology products and services to these companies.

Technology ETFs:

  • Vanguard Information Technology ETF (VGT)
  • iShares Dow Jones US Technology (IYW)
  • PowerShares QQQ (QQQQ)
  • PowerShares Dynamic Networking (PXQ)
  • PowerShares Dynamic Semiconductors (PSI)

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