For Immediate Release

Chicago, IL – April 18, 2012 - Stocks and funds in this article include: Market Vectors Agribusiness ETF (MOO), WisdomTree Emerging Markets Small Cap Dividend Fund (DGS), iShares MSCI Germany Index Fund (EWG). Eric Dutram looks at six easy ways investors can reduce the volatility in their portfolios while still being exposed to broad markets.

Three Great ETFs For Your IRA written by Eric Dutram of Zacks Investment Research:  

Thanks to a holiday in Washington D.C., U.S. residents had a brief extension over the traditional April 15th deadline in order to get income tax returns in on time. With many (including yours truly) waiting until this past weekend to get their returns in, this extra two day time frame was welcomed news to say the least.

The extra time has also allowed some investors to make one last contribution to their IRAs, just squeezing by the deadline for the 2011 tax year, or at the very least getting a head start on 2012 deposits. Yet with markets slumping as of late—but still near 52 week highs—some might be wondering what is the best place to put their new cash (see more in the Zacks ETF Center).

In light of this trend, it is important to remember that IRA investing should be focused on the long-term. After all, besides a few exceptions, investors must wait until they are 59 and ½ before taking any distributions, lest they pay a penalty. Thanks to this reality, investors should look beyond the present troubles in the market and consider what will be big or important years into the future.

While there are a number of great ETFs that can help investors accomplish this task, we have selected three equity ETFs below that could offer outsized opportunities for those willing to invest for the long term. These three products could be ideal for those with a decent risk tolerance and the ability to overlook short term fluctuations for long-term gains (read A Primer On ETF Investing).

Furthermore, investors should note that all three of these choices stay outside of the fixed income world. This approach looks to cut down on risks and promote growth as fixed income ETFs could be in for a rough patch at some point in the future should yields spike.

As a result, fixed income may not be the best idea—at least in large quantities—for an IRA investment, suggesting that investors should look to these three equity ETFs for their allocations instead:

Market Vectors Agribusiness ETF (MOO)

According to some estimates, the world population will reach nine billion by 2050, a nearly two billion increase from today. This means that the world population will grow by about a billion once every twenty years, a scenario that looks to put a huge strain on the carrying capacity of the globe (read Teucrium Launches New Basket Agriculture ETF).

One of the biggest beneficiaries of this trend looks to be the broad agribusiness industry as farmers scramble to produce more food for the world’s hungry population. Thanks to this, as well as the very likely possibility of higher food prices, farmers look to have a ton to spend on agricultural products ranging from machinery to fertilizer and everything in between.

In order to play this trend, investors should look no further than Market Vectors’ Agribusiness ETF (MOO). This ultra popular fund has assets under management over $5.5 billion and sees robust volume approaching 900,000 shares a day.

Nearly 40% of the portfolio goes to…

For the rest of this ETF article, please visit Zacks.com at: http://www.zacks.com/stock/news/73144/three-great-etfs-for-your-ira

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Eric Dutram
Company: Zacks.com
Phone: 312-265-9462
Email: pr@zacks.com
Visit: www.Zacks.com


 
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