ClusterGains

ETFs are becoming very popular for portfolios.  Some of these exchange traded funds hold a number of companies inside their fund such as ERX, the triple energy bull ETF.  If you look at the top ten holdings of ERX, you will see major oil companies on the list.  This provides instant diversification.  You don't have to worry about bad news for just one of the companies bringing down the whole ETF although you do have to watch how the sector moves as a whole.

I have listed some of my favorite ETFs on the right side of the page.  Just as ERX is a bull energy or oil ETF, the bear counterpart is ERY.  Both of these exchange traded funds can make moves of more than 10% at various times of the year.  You simply need to buy each fund when it is near its annual low and sell it when you have made 10% or more.  A patient investor can easily make double-digit returns each year if he or she buys the right ETFs at the right time.

Some of my precious metal favorites are AGQ for silver, GLD for gold, and NUGT for gold miners.  These ETFs can also make significant moves at various times.

TLT is my favorite U.S. Treasury bond ETF.  A lot of people ignore bonds because the yield is so low.  However, many other investors and institutions will seek the safety of bonds when the stock market is volatile.  This can drive the price of TLT up 15-20% from its annual low.