Seeking Alpha

David Fry's  Instablog

David Fry
Send Message
David Fry writes a subscription newsletter focused on technical analysis of exchange-traded funds, called ETF Digest ( Dave founded the ETF Digest in 2001 and was among the very first to see the need for a publication that provided individual investors with information and... More
My company:
ETF Digest
My blog:
Dave's Daily
My book:
The Best ETFs: U.S. Equities (A Companion Guide To Building Your ETF Portfolio)
    Mar 5, 2012 11:44 AM | about stocks: GLD, DGP, DZZ, SLV, AGQ, ZSL, USO, UCO, SCO, BDD, BOM, UCD, CMD, DBC, DVY, DEE, DBA, DAG, AGA, FXE, ULE, EUO, FXY, YCL, YCS

    Why would an investor want to invest in one of these sub-sectors? One reason is portfolio protection against the deleterious effects of rising energy prices. These negative effects are eventually manifested in the stock market, through demand destruction, higher producer costs, and ultimately, less money in consumers' pockets. Another reason is the general protection against inflation. While the Fed denies it, some still expect the launch of QE3. Most of the commodity subsectors will provide a measure of protection here. However, if that is the extent of the reason, there are Alt ETFs that offer a basket of commodities across all of these subsectors.

    Another reason is protection against erosion of the dollar's buying power. For this, an entire other category of Alt ETFs are specifically suited - currency ETFs. There are many ETFs that invest in foreign currencies. By so doing, investors benefit from the appreciation of that currency relative to the dollar (which is the same thing as saying the depreciation of the dollar in terms of another currency). This can be the major currencies (Japanese Yen, Euro, British Pound, etc.) or more exotic currencies, like those of the BRIC countries (Brazil, Russia, India and China). Again, there are baskets for investors that do not want to be country-specific.


    Themes: Alternative ETFs, Alt ETFs Stocks: GLD, DGP, DZZ, SLV, AGQ, ZSL, USO, UCO, SCO, BDD, BOM, UCD, CMD, DBC, DVY, DEE, DBA, DAG, AGA, FXE, ULE, EUO, FXY, YCL, YCS
Back To David Fry's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.