The Best ETFs to Buy Now

Top 5 Stocks for the Recovery[1]

Six ETF Picks from the
Experts at InvestorPlace

Exchange traded funds, or ETFs, have become commonplace on Wall Street. Some of the more common ETFs are indexed funds, and as the name implies they track a major Wall Street benchmark like the S&P or the Russell 2000. But there are limitless flavors to exchange traded funds — from sector-based funds to ETFs that focus on a specific region.

If you’re confused by the wide array of ETFs out there, take heart…

Here are six of the best ETFs to buy now from the investing experts at InvestorPlace.

NEXT – ETF #1

Top 5 Stocks for the Recovery[2]

ETF #1 – ING Risk Managed Natural Resources Fund (IRR[3])

Recommended by: Bryan Perry[4], editor of Cash Machine

Energy prices are back on the rise, fueled by growing optimism of a global economy bottom and led by China’s remarkable economy where GDP growth is back above 7%. The rebound in global fuel prices also follows OPEC declaring a production cut, citing record high inventories. That means that natural resources like gas and oil are going to be in high demand — and related ETFs like the ING Risk Managed Natural Resources Fund (IRR[3]) have big potential.

IRR focuses on providing a total return through a combination of current income, capital gains and capital appreciation. To do this, it invests at least 80% of its assets in equity securities or derivatives of natural resources companies. A portion of IRR, 20% or so, is dedicated to securities in emerging market countries.

Top holdings include Exxon Mobil (XOM[5]) with 11.7% of assets, Chevron (CVX[6]) at 8.2% and Schlumberger (SLB[7]) at 5.1%.

NEXT – ETF #2

Top 5 Stocks for the Recovery[2]

ETF #2 – SPDR Utilities (XLU[8])

Recommended by: Richard Young[9], editor of Intelligence Report

SPDR Utilities (XLU[8]) may not seem like a hot ETF since it’s down 4.4% YTD, but don’t worry about the relative underperformance of the utilities sector. This is likely driven by hot money flows out of defensive sectors in anticipation of an economic recovery. While making bets on the best sector is a key to profitable investing, frantic sector-chasing can be counterproductive in the long term. The bottom line is that if the economy is entering a sustainable recovery, utilities will rise as electricity demand rises.

If you believe in the recovery, than XLU is a good investment. Top holdings are Exelon (EXC[10]) with 7.9% of assets, Southern Co. (SO[11]) with 7.6% and Dominion Resources (D[12]) with 6.8%. It’s worth noting that with all those utilities, XLU also dishes out some nice dividends as an added bonus.

NEXT – ETF #3

Top 5 Stocks for the Recovery[2]

ETF #3 – iShares MSCI
Brazil (EWZ[13])

Recommended by: Richard Young[9], editor of Intelligence Report

If you like things spicy, then Brazil is the way to go — and I’m not talking about local dishes like feijoada. Brazil is seeing red hot growth, and there are number of aggressive but potentially blockbuster investments there. One way to play the Brazil boom is to buy the iShares MSCI Brazil (EWZ[13])

This booming emerging market is the place to be in 2010 — and this fund is a great way to tap into that growth. EWZ component stocks include some of the biggest powerhouses in the region like energy giant Petroleo Brasileiro (PBR[14]), better known as Petrobras, and metals and mining giant Vale SA (VALE[15]). There is always risk when investing in emerging markets, but these Brazilian blue chips give the EWZ ETF some stability.

NEXT – ETF #4

Top 5 Stocks for the Recovery[2]

ETF #4 – iShares iBoxx Investment Grade Corporate Bond Fund (LQD[16])

Recommended by: Richard Band[17], editor of Profitable Investing

The iShares iBoxx Investment Grade Corporate Bond Fund (LQD[16]) ETF is a great low-risk, long-term play for those of you who want to keep part of your nest egg free from dips in the market but aren’t content to hide in cash.

Its performance is tied to the corporate bond market, and top holdings include coupons from the biggest and most solvent names on Wall Street — including Verizon (VZ[18]), Wells Fargo (WFC[19]) and Goldman Sachs (GS[20]). Granted, a lot of these coupons only yield a few percentage points, but as the Fed hikes interest rates over the coming months and years we should se some nice upwards movement in this ETF.

NEXT – ETF #5

Top 5 Stocks for the Recovery[2]

ETF #5 – SPDR Gold Trust (GLD[21])

Recommended by: Robert Hsu[22], editor of China Strategy

Gold is still all the rage as the yellow stuff continues to cruise above $1,100 an ounce despite a brief drawback in prices. And with inflation talk heating up and the threat of a hike in interest rates by the Federal Reserve later this year, gold could become pricier than ever in 2010.

The SPDR Gold Trust (GLD[21]) is the purest way to participate in a gold bullion rally without the hassle of buying the metal directly. GLD is an exchange-traded investment trust backed by gold bullion, and its price tracks the performance of the metal. The shares can be bought and sold instantly through any standard brokerage account and have an average daily trading volume of over three million shares. The ease of use, liquidity and lack of sales charges makes the Gold ETF a unique and surefire way to ride the next wave of the bull market in gold.

NEXT – ETF #6

ETF #6 – iShares DJ US Insurance Index Fund (IAK[23])

Recommended by: Louis Navellier[24], editor of Blue Chip Growth

A hot sector ETF right now is the iShares DJ US Insurance Index Fund (IAK[23]). This fund has been performing well in recent weeks as the yield curve (the difference between short-term and long-tem interest rates) has widened and health insurance stocks rallied in the wake of the passage of the national health plan. With the controversial provision mandating that individuals purchase private health care insurance or face a stiff penalty, private sector health care insurers are poised to reap a windfall from the new law.

The top three holdings in this iShares fund are: Travelers Companies (TRV[25]) at 9.7% of assets, Prudential Financial (PRU[26]) with 8.3% and AFLAC Inc. (AFL[27]) with 7.9% of assets. IAK is up over 15% since February 1, compared with about 10% in the major indexes.

Top 5 Stocks for the Recovery
With rising earnings, a strong balance sheet and a powerful new product line (all despite the recession!) these five stocks are set to outperform the market in the short-term. Get their names here.[28]