The 2010 Investment U Conference is underway! And even if you couldn't make it, now you can "bring home" more than 30 breakthrough presentations from the conference... Order the Deluxe MP3/Video Library for $99 to listen and view on your computer, or the Premier CD plus MP3/Video Library for $149 to listen to and view anywhere.
Vanguard Financials ETF (NYSE: VFH): Stock of the Day
by Ted Leinbach, Research Team, The Oxford Club
Beaten-down bank stocks got a much-needed lift last week when the CEOs of Citigroup (NYSE: C) and Bank of America (NYSE: BAC) announced that both institutions were profitable for the first two months of this year.
The market has been quick to recognize these statements as positive signs of encouragement about the U.S. Financial system. They responded with a three-day rally that boosted the Dow Jones Industrials nearly 10 percent.
But despite this positive news, we are not going to say that the worst has passed, nor are we simply going to dive back into these individual banking stocks.
Instead, we are going to take a more conservative approach to play what just may be the next banking rebound by spreading around our capital.
We are going to buy the entire financial sector with one well-diversified investment: The Vanguard Financials ETF (NYSE: VFH). This exchange-traded fund tracks the performance of MSCI US Investable Market Financials Index. It gives you access to more than 500 large, mid-size, and small banks, including bellwethers like Goldman Sachs and JPMorgan.
The best part about this investment is that it takes all of the risk out of owning risky individual banking stocks like Citigroup and spreads it around. Therefore, you can capture the entire long-term upside of the financial sector with just one move, while sidestepping the volatility.
For example, just last week, VFH jumped $3.88, or 29% on the positive news. That means that it is hovering well above its 52-week low of $13.07, and climbing steadily higher.
One of the other big reasons why we like this ETF is because VFH has a very low expense ratio of .2% on shares that are held for less than one year.
Bottom-line: VFH is a low-risk way to play the banking rebound. And over the next 18 months as the recovery moves forward, those willing to get their feet wet in the financial sector will be rewarded by their investment.
- Bank Pullback Exposes Casino Opportunities
- Citigroup’s Multiple Personalities
- Stop Sitting on the Sidelines
|
The Company Set to Dominate a $60 Billion-a-Year Market
$60 billion is spent on cancer treatment in the U.S. - each year. And one company is poised to receive the lion's share of it.
The medical director at the Alta Bates Comprehensive Cancer Center says, "...possibly a third of our cancer patient population will soon be undergoing this [company's] treatment."
Another doctor at the University of Texas MD Anderson Cancer Center says he intends to treat over 1,000 patients a year with this technology.
Here's how you can claim your stake in the company before this cash infusion sends shares soaring.
Comments
**By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.Check out our selection of daily Investment Research:
 |
 |
Investment U RSS Feed