Traditional ETFs (6 Sep 11)

Traditional ETFs

A Traditional ETF is essentially an index fund that trades like a stock.  There are traditional ETFs covering everything from broad stock indexes to individual commodities.  These ETFs are useful tools for inexpensively diversifying your portfolio, and they are available in all major asset classes.  If you generally like to pick individual stocks but you don’t know much about a certain sector or region, you could use an ETF to complement your stock allocation so that you’re more broadly diversified.

iPath S&P 500 VIX (VXX) $41.48

Profit Target (15%): $47.70  

Trailing-Stop (ATR x 2): $5.80

SPDR Gold Shares (GLD) $183.24

Profit Target (15%): $210.75  

Trailing-Stop (ATR x 2): $8.50

Market Vectors Gold Miners (GDX) $64.91

Profit Target (15%): $74.65  

Trailing-Stop (ATR x 2): $4.36

iShares 20+ Year Treas Bond (TLT) $112.51

Profit Target (15%): $129.40  

Trailing-Stop (ATR x 2): $5.00

iShares Silver Trust (SLV) $42.18

Profit Target (15%): $48.50 

Trailing-Stop (ATR x 2): $2.80

Like stocks, ETFs are traded on major U.S. stock exchanges and can be bought and sold anytime during normal trading hours.  Because of their diversification, the price movement in ETFs is more predictable than in individual stocks.

All positions displayed are for educational purposes only and are not intended to be recommendations.