Recharging Your Portfolio with Utility ETFs

I'm a stock guy. That means I normally prefer to buy the stock of specific companies -- not bonds, not mutual funds, but individual equities. Every so often, however, I give in and buy or recommend an exchange-traded fund. I usually do that when there is a rising tide effect -- when increases in a sector or market are boosting stock prices overall.

Over the last few quarters, housing would have been a great candidate for this ETF strategy. Real Money Pro subscribers would have done well buying SPDR S&P Homebuilders ETF (XHB) or iShares DJ US Home Construction (ITB). These ETFs are up 36% and 54%, respectively, in the past year or so. Yes, you could have bought shares in individual companies like Toll Brothers (TOL), M/I Homes (MHO), or Pulte Homes (PHM). But you could not argue with the returns for either XHB or ITB -- both of which easily trounced the S&P 500 over the last 12 months....398 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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