Seven Exchange Traded Funds for a Diversified PortfolioExchange traded funds provide an easy way to build a diversified portfolio with far lower costs and easier trading than mutual funds. But how do you know what to buy? In this article we're going to give you seven options that pack an investing punch.
SPRD S & P 500 (SPY)The SPDR S & P 500 exchange traded fund is a must have for investors seeking to track the individual market. This ETF is priced at 1/10th the index of the S & P 500, so gives small investors a low cost way to not only build a diversified portolio, but to invest in the 500 companies that make up the S & P 500. Look for the ticker SPY. The Dow Jones Industrial AverageWant to track the Dow Jones Industrial Average? History indicates (although it can't guarantee) that following the Dow Jones over long periods of time is going to generate healthy returns. One way to do this is by investing in one of the exchange traded funds that tracks the Dow Jones Industrial Average. One fund that does this is the Dow Diamonds fund, with ticker DIA. Invest In China and IndiaOne of the best things about exchange traded funds is the ease with which you can invest in emerging markets. Opportunities exist to build diversified investments in China, Brazil, India, and other emerging markets without having to put up too much money at once. For China, consider the large-cap exchange traded fund GXC. If you're looking for dramatic growth in China, the small-cap fund HAO might be to your liking. To invest in India, look into the iShares India Nifty Fifty (stock ticker INDY). Bond Exchange Traded FundsFor the small investor, buying bonds can be inconvenient and expensive. You could try mutual funds, but they will require a large initial investment. Luckily there are several exchange traded funds available for bond investing. Visit the SPDRS or iShares website to learn about what's available, or read our blog article. Blog Article: Bond ETFs Gold ETFLooking to precious metals? Or oil & gas? Exchange traded funds not only let investors diversify their stock portfolios, but you can find an ETF to invest in gold or commodities. One fund you will probably be interested in is the SPDR gold fund, which is priced at 1/10th the price of an ounce of gold. The ticker is GLD. 
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