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ETFs: Watch & Learn How To Invest

During the 3:20 PM Closing Belltoday, my guests will be two experts in Exchange-Traded Funds (ETFs): Tom Lydon, a contributor to CNBC.com and editor of ETF Trends, and Jim Lowell, editor of the ETF Trader newsletter.

I'm having them on because I am hearing reports that brokerage firms are seeing a surge in new clients from individuals fed up with what's happened to their savings and are making a go of managing their own money.

For some, this is a good idea, for others perhaps not. But under any circumstances ETFs are a good option for self-directed or professional investors.

It is now feasible for an individual to put together a broad investment portfolio that can be both cheaper than mutual funds, and more diversified because ETFs offer greater exposure to commodities, international stocks, and bonds.

I asked Tom and Jim to put together some suggested ETF portfolios.

Here's Tom's pick:

  • SPDR S&P Retail (XRT): up 25.9% year-to-date
  • iShares FTSE/Xinhua China 25 (FXI): up 9.5% year-to-date
  • iPath Dow Jones AIG Copper (JJC): up 49% year-to-date

Tom runs an informative ETF website: www.etftrends.com

Jim runs four different ETF portfolios through his newsletter. Here are two, the first one a fairly straightforward broad portfolio, the other an Aggressive Trader Portfolio that is quite novel.

Total Market Model Portfolio

  • PowerShares QQQ (QQQQ) 32.8 percent
  • iShares Russell Mid Growth (IWP) 31.7 percent
  • SPDR DJ Wilshire Small Cap Growth (DSG) 35.5 percent
  • Portfolio is up 6.5% over last 50 days, up 3.6% YTD

Aggressive Trader Model Portfolio

  • ProShares Ultra QQQ (QLD) 27.0 percent
  • iShares MSCI South Africa (EZA) 22.4 percent
  • iShares MSCI Brazil (EWZ) 25.2 percent
  • iShares DJ US Broker-Dealers (IAI) 25.4 percent

Portfolio is up 18.0 percent over last 50 days, up 10.8 percent YTD

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Questions? Comments? tradertalk@cnbc.com

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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