Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)
Twitter
Tags: Technology
Stocks: FDN, IGM, XSD

Play the Market's Hidden Rally Catalyst

This expert insight from Michael A. Robinson originally ran in Strategic Tech Investor on July 12, 2017

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Michael A. RobinsonMichael A. Robinson

There's an under-the-radar reason why the stock market keeps rallying despite some mediocre economic numbers, constant "noise" out of Washington, and plenty of overheated valuations.

And while it's a bit hidden, it's huge.

In fact, it owned 6% of the U.S. stock market in the first quarter.

And it keeps gobbling things up.

It bought $98 billion in U.S. stocks during the first three months of the year - and that puts it on pace to surpass its total purchases for 2015 and '16 combined.

I'm talking about exchange-traded funds (ETFs) and Main Street investors' big appetite for passive investments.

Those investors keep putting more money into funds they can then forget about - and the market keeps rising.

Now, you could join them and buy some passive index funds.

But that's not what we do here. We're in search of investments on the frontier - ones that will double, triple... even quadruple our money.

So let's get active and go in search of three ETFs that will get us to that frontier.

All three will continue to double the market's return - and line your pockets - for years to come...

Combo Play

While we're active stock pickers at Strategic Tech Investor, I do recommend making several tech ETFs part of your core holdings because they target the most profitable trends and give you instant diversification.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.
Plus, they take advantage of the fact that tech remains one of the big drivers in this bull market that began in March 2009. Even though we do see the sector come under pressure from time to time, as it did again a couple of weeks ago, technology remains the best place to make life-changing gains.

And to get yourself on the Road to Wealth...

Again, I'm not saying you should avoid individual stocks. We use ETFs to provide a solid base so that you can focus on the big winners among individual tech shares.

That's where my two paid services come into play. We just closed the books on the second quarter and totally crushed the market.

During the period, the S&P 500 gained 2.6%. But readers at my Nova-X Report more than tripled that, with an average gain of 8.1%. Members of my Radical Technology Profits premium service did even better. They earned an average 12.9% return, beating the broad market by just shy of fivefold.

Several stocks at each service did even better than that, with some climbing 30% or more in just three months.

Now, let's make sure you add to your foundational holdings by taking advantage of the big upsurge we see in ETF investing.

But let's do so actively.

I've come up with three that are focused on high tech and that have great returns and very low overhead - they pass all three of my ETF Profit Screens. That means your profits won't get eaten by expenses.

If you ever thought ETFs couldn't get you to the frontier - think again.

Take a look at these three...

Frontier ETF No. 1

The SPDR S&P Semiconductor ETF (NYSE Arca: XSD) is a great play on a very basic fact - our tech-driven world needs chips for just about everything, from smartphones and connected cars to Wi-Fi routers and data centers.

Add in the Internet of Everything, virtual reality, and artificial intelligence - and you can see we're looking at strong demand for years to come.

With XSD, we get to invest in roughly 50 firms covering nearly every aspect of the chip sector.

Of course, it hold industry giants like Intel Corp. (Nasdaq: INTC). It also holds Skyworks Solutions Inc. (Nasdaq: SWKS), which ranks as a force in the mobile and broadband markets.

Nvidia Corp. (Nasdaq: NVDA) makes advanced graphics processors now being used in connected cars, virtual reality, and artificial intelligence. And Integrated Device Technology Inc. (Nasdaq: IDTI) is a small-cap firm that sells sophisticated computer memory systems to the wireless industry.

No wonder XSD is such a strong performer. Over the past year, it has soared roughly 41%, more than double the gains of the S&P 500. XSD trades at $62, with an expense ratio of 0.35%.

Frontier ETF No. 2

Holding more than 40 stocks, First Trust Dow Jones Internet Index (NYSE Arca: FDN) is set up to take advantage of the broad changes occurring in the Internet industry, including a nice sub-focus on e-commerce.

For instance, it holds e-commerce titans eBay Inc. (Nasdaq: EBAY) and Amazon.com Inc. (Nasdaq: AMZN). FDN also owns Netflix Inc. (Nasdaq: NFLX) and Alphabet Inc. (Nasdaq: GOOGL).

Plus, FDN holds web "pick-and-shovel plays" like Netgear Inc. (Nasdaq: NTGR), which supplies Ethernet switches to homes, businesses, and Internet service providers.

And it gives us a couple of nice plays on online trading. FDN holds both E*Trade Financial Corp. (Nasdaq: ETFC) and TD Ameritrade Holding Corp. (Nasdaq: AMTD).

For the year ended June 30, FDN is up roughly 31%, right at double the gains of the S&P 500. It trades at roughly $94 and has a 0.54% expense ratio.

Frontier ETF No. 3

Join the conversation. Click here to jump to comments…

Michael A. RobinsonMichael A. Robinson

About the Author

Browse Michael's articles | View Michael's research services

Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...

  • He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
  • He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
  • As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.

This all means the entire world is constantly seeking Michael's insight.

In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.

Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.

And even with decades of experience, Michael believes there has never been a moment in time quite like this.

Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.

To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.

His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments


Latest News

May 27, 2023 • By Garrett Baldwin

postcards from the florida republic - may 27

May 26, 2023 • By Garrett Baldwin

Here's Your (Surprising) Best Bet in a U.S. Default

May 26, 2023 • By Shah Gilani

earnings
The Five Things You Need to Know Before Buying Any Stock
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz