SeekingAlpha's Ten Best ETFs for 2010

Investing Ideas (4)

SeekingAlpha.com has published its 10 Best ETFs authored by Michael Johnston from ETFdb.com, our favorite of his picks include WisdomTree Dreyfus Emerging Currency Fund (CEW), Market Vectors Gaming ETF (BJK), and PowerShares Global Listed Private Equity Portfolio (PSP).

(SeekingAlpha.com) Many investors will be sorry to see 2009 end. Following one of the most disruptive years in recent memory in 2008, almost every asset class participated in a stellar recovery this year. At the depth of the recession, fear trumped reason, and irrational anxieties pushed many assets, including ETFs, well below their intrinsic value. Much of the final three quarters of the year was spent recouping these losses, much to the delight of those who had the wisdom to identify an exaggerated downward correction and the stomach to stay all in as prices bottomed out.

Now, with 2010 just around the corner, the hard work begins. The low-hanging fruit has been collected, and the road ahead is littered with daunting obstacles, ranging from still-rising unemployment to inflation concerns to international debt crises. That’s not to say that 2010 won’t be another stellar year, just that more concrete evidence of a progressing recovery will be needed to push prices higher. “Less bad” news can only be dressed up as signs of improvement for so long.

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Company name Price Change Chg % Mkt Cap
CEW WisdomTree Dreyfus Eme... $21.91 0.00 217.02M
BJK Market Vectors Gaming ... $23.60 -0.13 117.96M
PSP PowerShares Listed Pvt... $9.06 -0.05 131.30M

WisdomTree Dreyfus Emerging Currency Fund (CEW)

CEW Offers A Way To Profit From A Sliding GreenbackLow interest rates have been one of the keys to the recovery efforts in the U.S., and all indications are that record-low rates are here to stay, at least through the first few quarters of 2010. While much of the developed world is in the same boat as the U.S. — not yet on stable enough ground to begin raising rates — emerging markets are another story. Several developing economies are currently paying money market rates in excess of 7%, staggeringly-high rates for investors accustomed to returns on fixed income investments below 1%.

Market Vectors Gaming ETF (BJK)

Gaming ETFs Could Get A Bump In 2010After being battered and bruised during the economic downturn, the gaming industry bounced back with an impressive performance in 2009. But BJK still remains well below highs from the previous year, as consumers have been slow to loosen the purse strings for clothes, let alone craps. But there’s a lot more to the gaming industry than the Las Vegas Strip.

PowerShares Global Listed Private Equity Portfolio (PSP)

There Were No Repeats of RJR Nabisco, But Some Private Equity Firms Found BargainsPSP is one of the more unique ETFs available to U.S. investors, offering exposure to private equity firms that in turn offer exposure to a wide variety of privately-held companies. This ETF invests in between 40 and 60 publicly-traded private equity companies, including business development companies and other financial institutions whose principal business is to invest in and lend capital to privately-held companies. PSP invests in companies around the world, allocating only about 36% of its holdings to U.S. companies.

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