Don Dion Recommends Three ETFs In 2010 (DVY, TIP, PBW)
Benzinga 16 years ago
Long IdeasSpecialty ETFsTrading IdeasETFs
Don Dion, a leading expert in ETFs, wrote in his article for thestreet.com that investors should consider investing in iShares Dow Jones Select Dividend (ETF) (NYSE: DVY), iShares Barclays TIPS Bond Fund (ETF) (NYSE: TIP) and PowerShares WilderHill Clean Energy(ETF) (PBW)
He believes that interest rates will stay low for the foreseeable future and that investors should transfer their money from bonds and money market funds to high-yield dividend stocks. iShares Dow Jones Select Dividend (ETF) (DVY) is a good pick, in his opinion, because it is a large and liquid fund that currently holds stocks like Chevron (NYSE: CVX), Kimberly-Clark Corporation (NYSE: KMB) and McDonald's Corporation
(NYSE: MCD). DVY closed at $44.45 today with 0.50% price increase.
Investors should use iShares Barclays TIPS Bond Fund (ETF) (TIP) as a protection to expected inflation. TIP became the sixth largest fund due to a big expansion in 2009. Weak dollar, low interest rates and huge government stimulus pressured investors to take shelter in this ETF. TIP lost 0.26% today and closed at $103.79.
Don Dion also thinks that green energy is a sound investment for 2010, due to growth in the emerging markets and government regulations and legislations to cut down carbon emissions. PowerShares WilderHill Clean Energy(ETF) (PBW) tracks renewable energy companies like JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO), Fuel Systems Solutions, Inc. (NASDAQ: FSYS) and Advanced Battery Technologies, Inc. (NASDAQ: ABAT). PBW gained 0.45% today and closed at $11.19.
