2 ETFs to Buy Now

October 9, 2009

Many investors and experts use ETFs as a safety vehicle that they buy and hold for years on end. They buy with the expectation of a reasonable profit in several years. Well I know that if you buy sector ETFs when you see market trends forming and sell after just a few months, you'll grab the lion's share of the profits and be on your way to the next trend and the next profit opportunity.

I’ve implemented this strategy with my Blue Chip Growth service and the gains are already stacking up. Let me show you…

All summer we saw terrific tech-related news. Research in Motion (RIMM) revved up our engines when AT&T's BlackBerry sales grew in the double digits month-over-month in June. Keeping with the momentum train, BlackBerry released the highly anticipated BlackBerry Tour mid-July on both Sprint and Verizon.

Intel (INTC), often considered a bellwether for the broader tech industry, gave the market a healthy boost when it single-handedly pushed the DOW to post its best one-day gains in 4 months!

Not to be outdone, Apple (AAPL) continued its thus-far unbeatable, record-squashing iPhone selling boon when consumers scooped up 1 million of its latest iPhones in just 3 measly days.

As you can see, this is a lot of good news for the tech sector. But were any of these or other tech stocks worthy of investment when the news was heating up? I did the research, and it was simply too early to be buying into these companies. For example, despite RIMM's excellent sales numbers, the stock is down about 5% since early summer. But the news did help sentiment around the tech sector in general.

So clearly there was strength, but no immediate buys. That’s why I recommended the iShares DJ US Technology Sector Index Fund (IYW). IYW buys the top technology stocks in a basket, and you profit from the excitement over growth in the sector, without the risk of buying individual stocks.

More ETFs to Buy

Tech isn’t the only sector that’s heating up. In all, I’m targeting five key ETFs that are benefiting from strong market trends that should deliver 30% to 50% gains in the coming months. One of those five is the iShares S&P Global Infrastructure Index Fund (IGF). This is my best-performing ETF to date and nicely captures the growth and excitement happening in global markets right now. Just like the technology ETF, this one is benefiting from specific sector strength and has a lot of room to run. You should buy this one with confidence.

For more on ETFs, how they can add another layer of profits to your portfolio and much more, check out my free report called ETF Profit Secrets Revealed. For more ETF buy recommendations, check out my Blue Chip Growth service.

Download Louis’ latest investing report designed to help you grab 50% gains in the coming 6 to 9 months using ETFs. Harness the growing strength of ETFs without adding significant risk to you portfolio. Do it now!