ETFs to Buy: Financial Select Sector SPDR (XLF)
The first three funds will take care of really broadening your portfolio; the next two are designed to give you a little concentration in other parts of the market that I believe are ripe with opportunity.
You can go a lot of ways with sector ETFs, but to begin with, I like the Financial SPDR (XLF). The way I see it, financial services make the world go round. When you consider that everything humans do involves transactions, and the sheer number of companies that are somehow involved in the chain of financial transactions (the XLF holds roughly 80 of them), you begin to understand why I chose this ETF. Financials have their bumpy times, to be sure, but they always recover.
XLF top holdings include stocks such as Wells Fargo (WFC) and JPMorgan Chase (JPM) at just more than 8% each, but also Berkshire Hathaway (BRK.B) — a stock I think you could buy and hold forever — at 7.8%.
XLF charges 0.16% in expenses and yields 1.5% in dividends.