Thursday, July 12, 2012

CNBC ETF Portfolios Offer Investors a Solid Starting Point

By Matt Hougan

On Monday, Jim Lowell, Tom Lydon and I had the honor of launching a series of six ETF portfolios on CNBC.

The portfolios are designed to help CNBC viewers take abstract ideas about the markets and turn them into investable portfolios.

If viewers are bullish on the outlook for global markets, there is an aggressive global model portfolio they can review. If they’re bearish, there’s a portfolio designed to protect them against a market fall. If they are concerned about inflation or excited about emerging markets, there are portfolios for that as well.

The portfolios are managed by Jim, Tom and me on an ongoing basis. We meet monthly at a minimum and make changes to the portfolios as we see fit. We choose ETFs that are liquid, low cost and do a good job tracking their area of the market. You can review the portfolio holdings and track their performance on Bob Pisani’s Trader Talk blog at CNBC. Interactive Data Corp. has designed a nice portfolio tracking tool, which makes it all very easy to follow.

We don’t claim that these portfolios are perfect, or that they should be adopted entirely by any individual investor. But I do think they provide a solid starting point for investors who are looking to put their ideas about the markets to work.

The ETF space can be intimidating. With more than 1,000 ETFs and ETNs to choose from, finding the right one and building a sound portfolio can be a little daunting. These portfolios are designed to set people off on the right path, with ETFs and asset allocations made by three experts in the field.

For those of you who are interested, we've posted two CNBC clips of me on discussing the portfolios with Bob Pisani on air Monday. The first is of Tom Lydon and me, and the second is just Pisani and me digging a little deeper. We also posted a third with Tom Lydon and Jim Lowell covering the topic from a third angle.

Check out the portfolios today here.

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