A Sample ETF Portfolio for Alternative Investments.
If you’re looking for an ETF portfolio that provides exposure to assets other than stocks and bonds, you may want to check this out.
The ETFs in this portfolio (from Kiplinger’s magazine) are anything but the boring, old index funds that got the ETF started. The funds cover commodities like energy, gold and agricultural, but also Timber, Agribusiness and Water Resources. While those sectors and asset classes have a tendency not to follow stocks and bonds, they also have a tendency to be highly volatile, so the folks at Kiplinger also throw in a TIP fund to act as a ballast to help smooth the ride.
- 20% iShares Barclays TIPS Bond (TIP)
- 15% PowerShares DB Energy (DBE)
- 15% SPDR Gold Shares (GLD)
- 15% WisdTree Dreyfus Emerg Currency (CEW)
- 10% Claymore Glbl Timber Index (CUT)
- 10% Market Vectors Agribusiness (MOO)
- 10% PowerShares Water Resources (PHO)
- 5% PowerShares DB Agriculture (DBA)
TIP
iShares Barclays TIPS Bond ETF track Barclays Capital U.S.Treasury Inflation Protected Securities (TIPS) Index (Series-L).
EXPENSE RATIO: 0.20%
YIELD: 3.90%
DBE
The PowerShares DB Energy ETF tracks the Deutsche Bank Liquid Commodity Index.
EXPENSE RATIO: 0.75%
YIELD: N/A
GLD
The SPDR Gold Shares ETF tracks the price of gold bullion.
EXPENSE RATIO: 0.4%
YIELD: N/A
CEW
The WisdTree Dreyfus Emerg Currency ETF tracks money market rated investments in selected emerging market countries available to foreign investors and changes to the value of these currencies relative to the U.S. dollar.
EXPENSE RATIO: N/A
YIELD: N/A
CUT
The Claymore Glbl Timber Index ETF tracks the Clear Global Timber index.
EXPENSE RATIO: 0.71%
YIELD: 2.38%
MOO
The Market Vectors Agribusiness ETF tracks the DAXglobal Agribusiness index.
EXPENSE RATIO: 0.58%
YIELD: 0.73%
PHO
The PowerShares Water Resources ETF tracks an equity index called the Palisades Water index.
EXPENSE RATIO: 0.64%
YIELD: 0.51%
DBA
The PowerShares DB Agriculture ETF tracks the Deutsche Bank Liquid Commodity Index – Optimum Yield Agriculture Excess Return index.
EXPENSE RATIO: 0.75%
YIELD: N/A
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