Need some ETF advice please.?

Question

I had a tiny bit of cash in the bank account, and i was wondering if some investors could tell some good ETF's to invest in.

I am very interested in QQQQ and KWT, but could anyone tell me any other good ETF that has to do with the automobile industry that has a chance in the future.

Answer 1

I would avoid KWT. It is thinly traded and therefore unpredictable.

QQQQ is of course the nasdaq 100 index tracking stock. Not much in terms of transports or the automobile industry.

Your best bet for exposure to the automotive industry and transportation industry as a whole, is the ETF: IYT. It trades about 1.5 million shares a day, so easy to get in and out of positions. Of course with oil at 140, all the transports are facing difficulties in the short term. Long term, perhaps a good opportunity, although IYT has broken its short term uptrend and likely to fall back to around 85, its 200 day moving average, before it tries to mount another rally.

Answer 2

The answer depends on your current "asset allocation". Obviously you wouldn't want to be to over weighted in any one sector.