Sector ETF's

[ripvanwinkle]

Since I'll be getting a modest bonus this year, I've decided buy sector etf's rather than individual stocks. I'm thinking maybe 5 sectors but not sure which. Any suggestion on which 5 sectors.

[Ombud]

If buying 5 sectors, why not just SPY? Is this beginning a portfolio (building up core), or adding to an existing one?

[tyfighter3]

JMO but if your looking at a 5 year investment time frame or more, AMLP might be a good ETF to look at. Right now its been beat up buy lower oil prices but it pays around 10% dividend. Oil won't stay down forever and this ETF does pipelines, storage and like now, EPD exporting. This ETF would be in the Energy Section. DO your DD on any investment.

[clarkrl2]

Many of the sector etfs are dominated by a relative few names but I think xle, xlf, xlv, xlk, and xli: energy, financials, healthcare, technology, and industrials would be a good combination to expose you to a lot of the growth sectors.

xle holdings: finance.yahoo.com/q/hl?s=XLE+Holdings

xlf holdings: finance.yahoo.com/q/hl?s=XLF+Holdings

xlv holdings: finance.yahoo.com/q/hl?s=XLV%2C+&ql=1

xlk holdings: finance.yahoo.com/q/hl?s=XLK%2C+&ql=1

xli holdings: finance.yahoo.com/q/hl?s=xli&ql=1

xlp for consumer staples and xly for consumer cyclicals would be some others for consideration.

xlp holdings: finance.yahoo.com/q/hl?s=XLP+Holdings

xly holdings: finance.yahoo.com/q/hl?s=xly&ql=1

If your fairly young you probably don't need xlu utilities

xlu holdings: finance.yahoo.com/q/hl?s=XLU%2C+&ql=1

There are no doubt other good choices. You could probably do well over time by adding to the worst performer(s) each year but you would need to exercise patience.

[ripvanwinkle]

Dec 24, 2015 9:04:27 GMT -5 Ombud said:

If buying 5 sectors, why not just SPY? Is this beginning a portfolio (building up core), or adding to an existing one?

I'm adding to a existing portfolio. Just random stocks and ETFs in it now. Diversify it better.

[Deleted]

Dec 26, 2015 1:24:32 GMT -5 ripvanwinkle said:

Dec 24, 2015 9:04:27 GMT -5 Ombud said:

If buying 5 sectors, why not just SPY? Is this beginning a portfolio (building up core), or adding to an existing one?

I'm adding to a existing portfolio. Just random stocks and ETFs in it now. Diversify it better.

VTI Total Stock Market and VT Total World each have thousands of stocks. i like them because then I wouldn't have to worry about which sectors to pick and how to tilt them.

[Ombud]

Dec 26, 2015 10:23:27 GMT -5 @aj said:

Dec 26, 2015 1:24:32 GMT -5 ripvanwinkle said:

I'm adding to a existing portfolio. Just random stocks and ETFs in it now. Diversify it better.

VTI Total Stock Market and VT Total World each have thousands of stocks. i like them because then I wouldn't have to worry about which sectors to pick and how to tilt them.

Exactly my point. If trying to diversify (build up a core) than any total stock market ETF works .... just look for the lowest net expense ratio.

SPY = 0.09% - 500 US stocks
VTI = 0.05% - mirrors SP500
VT = 0.17% - 7500 stocks in 47 countries

[tyfighter3]

Here is a good read on some high dividend ETF.

seekingalpha.com/article/3778366-a-small-cap-dividend-play-with-17_7-percent-dividend-yield-for-my-model-retirement-portfolio

[verrip1]

Picking 5 successful sector etfs is a long shot.  Fewer might be better.  You really won't get any sort of diversification by going with multiple sectors, but moving a bit away from diversification is the inherent purpose in going with some sector holdings rather than going strictly broad market.  The broad market has its place, but there's no need to go crazy over it like Bogleheads do.

Consider utilities, alternative energy, healthcare, hedged Europe, midcap growth and consumer discretionary.

[ripvanwinkle]

It looks like my idea of a modest bonus and managements appears to be slightly different.  . Not complaining though. At least I got one. Looks like I'll just be buying one etf for now. I think I'll do SPY.