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Three Sectors with Attractive Opportunities

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What has made the 2008-09 bear market especially rough is that virtually no investment categories have been left unscathed. But some market sectors have been faring better lately and should continue to recover. Wealth manager Nicholas Yrizarry is tilting the portfolios his firm oversees in the direction of those sectors to take advantage of their strength. Here are three exchange-traded funds (ETFs) that he says investors can use to tilt in those directions…

iShares Dow Jones US Healthcare (IYH). While the US has been experiencing massive layoffs, the health care industry has continued to hire. More than 400,000 jobs were created in the health care arena last year and growth is expected to continue as the need for medical services grows. This ETF invests in a wide range of health care names, including blue chip pharmaceutical companies, medical equipment firms and medical Real Estate Investment Trusts (REITs). Recent share price: $49.02.

iShares S&P North America Natural Resources (IGE). Natural resource stocks got pummeled last year as the sector dropped more than 40%, on average, but it is staging a comeback. One strong indicator is the rising price of copper. Copper is used in new construction so it serves as an early sign of growth. This ETF invests in a diversified basket of energy, gold and metals stocks. Recent share price: $25.47.

Consumer Staples Select Sector SPDR (XLP). Even during a recession, Americans continue to buy toothpaste, soap, toilet paper and other basic supplies. The top holdings of this ETF include Wal-Mart, Colgate-Palmolive and Coca-Cola. Recent share price: $21.63.

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Source:
Source: Nicholas Yrizarry, chief executive officer and founder of Nicholas Yrizarry & Associates, a wealth management firm in Reston, Virginia. www.nyadvisors.com.
Date: April 29, 2009 Publication: Bottom Line Personal
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