Table of Contents - Zacks Investment Research of Contents 1 How To Invest in ... Use these proven...

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Transcript of Table of Contents - Zacks Investment Research of Contents 1 How To Invest in ... Use these proven...

Table of Contents

1 How To Invest in Everything

Introduction ............................................................................ pg 2

Take Advantage of the Rally in Commodities ........................... pg 3

Trade Currencies With Ease ................................................... pg 4

Easily Buy Bonds ................................................................... pg 5

Instantly Build A Winning Basket Of Stocks ............................. pg 6

You Really Can Buy Everything .............................................. pg 7

Zacks Resources ................................................................... pg 8

Introduction

2 How To Invest in Everything

Why limit your investment options when you can own a little of everything? Exchange-Traded Funds (aka ETFs) make it real easy to diversify across a wide range of investments. Whereas before, you may have needed access to a margin, futures and Forex account, you now have access to similar features with just a traditional brokerage account or an IRA. Here’s how you can invest in everything.

Take Advantage of the Rally in Commodities

3 How To Invest in Everything

Cringing every time you go to the pump? Think gold could rise higher? Buy an ETF. There are multiple ETFs that give you exposure to the commodities. For example, say you heard about the spring planting season being delayed. You could open a futures account and analyze hundreds of contracts or you could use your existing brokerage account and buy PowerShares DB Agriculture Fund (DBA). In fact, you could easily create a basket of commodities with DBA, PowerShares DB Base Metals Fund (DBB), PowerShares DB Energy Fund (DBE) and SPDR Gold Trust (GLD).

There are also multiple funds that package stocks whose fortunes are tied to commodity prices, such as Market Vectors Gold Miners (GDX), a fund I recently added to ETF Trader. Just make sure you don’t confuse MOO with COW. One is Agribusiness (MOO), whereas the other is Livestock (COW).

Trade Currencies With Ease

4 How To Invest in Everything

Worried about that trade deficit with China? Think India’s economy is going to rebound faster and stronger than ours? Want to trade Euros on a regular basis? No problem, just buy an ETF. You have your choice of the Chinese Yuan (CYB), the Indian Rupee (ICN) and the Euro (EUR). And if a trip to the South Seas is in your future, you can even buy the South African Rand (SZR) or the New Zealand Dollar (BNZ). Of course, the currency markets can move quickly. That’s okay because you also have the option of being really aggressive with ETFs. For example, the Ultra Euro (ULE) rises at 2x the pace of the Euro, while the UltraShort Euro (EUO) moves 2x in the opposite direction. (Similar funds also exist for the Yen.)

Easily Buy Bonds

5 How To Invest in Everything

Have you ever tried to buy bonds through your stock broker? It’s not easy. You have to know what maturity and credit rating you want. Furthermore, commissions are higher than that of stocks. Not to mention other factors you may want to consider, such as duration. Alternatively, for the price of a stock trade, you could purchase an index of bonds. There are a wide variety of ETFs that track just about any type of fixed-income security you can think of. Some are pretty plain vanilla such as the brand new Pimco 1-3 Year Treasury Index (TUZ), while others are much more aggressive such as the iBoxx High Yield Corporate Bond Fund (HYG). There also muni funds, like the PowerShares Insured CA Municipal Bond Portfolio (PWZ) and international funds, like the JPMorgan USD Emerging Markets Bond Fund (EMB).

Again, you can easily short bonds. I used the UltraShort 7-10 Year Treasury (PST) in ETF Trader to take advantage of the rise in treasury yields that occurred early in June.

Flip Real Estate

6 How To Invest in Everything

Who says it’s hard to buy and sell real estate? All you need to do is combine SPDR Dow Jones REIT (RWR) with SPDR Dow Jones International Real Estate (RWX) and you’ll own properties in more countries than Donald Trump. Of course, since location is everything, I would be remiss if I didn’t tell you that you could target certain geographic areas. For example, FTSE EPRA/NAREIT Developed Asia Index Fund (IFAS) gives you properties on the other side of the Pacific Ocean. If you’d rather own mortgages than property, then check out Barclays MBS Bond (MBB).

Instantly Build A Winning Basket Of Stocks

7 How To Invest in Everything

ETFs make it incredibly easy to build a diversified portfolio of stocks. You chose from market-cap - S&P 500 SPDR (SPY), style - Growth ETF (VUG) or country - MSCI United Kingdom Index (EWU). In ETF Trader, I use funds that track specific sectors and industries. This allows me to harness the power of earnings estimate revisions to help find the best funds to buy.

You Really Can Buy Everything

8 How To Invest in Everything

Though I provided just a small sample of funds, you can see that ETFs open a wide range of investment possibilities. And all of it is accessible through your regular brokerage account. It really is that easy to invest in everything.

Wishing you prosperity,

Charles Rotblut, CFA

Senior Market Analyst

Zacks.com

Charles is a world-class expert on industry trends and runs the Industry Analysis section on Zacks.com. He also provides the moves and commentary for our new Zacks ETF Trader, which lets you invest in “everything,” commanding the hottest industries and trends without the added expense and risk of buying numerous stocks. Getting aboard the best industries offers mega-profit potential. For example, stocks from industries in the top 50% of the Zacks Industry Rank outperform the others 4-to-1. Find out more about the ETF Trader now >>

Zacks Resources

9 How To Invest in Everything

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10 How To Invest in Everything

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Zacks Resources con t inued. . .

11 How To Invest in Everything

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12 How To Invest in Everything

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