5 ETFs for a 'Godfather' Portfolio
With the Oscars just around the corner, we decided to pay tribute with an ETF portfolio that would have made the Corleones proud.
With the Academy Awards scheduled for Sunday evening, movie buffs everywhere will be watching with anticipation to see who takes home the hardware this year. Inspired, our minds wandered back to the 1970s when The Godfather movies hit the big screen. Few movies can boast Oscar lore on par with them.
The first Godfather won three Oscars in 1973 and was nominated for eight more. A couple years later, The Godfather: Part II became the first sequel ever to win the Oscar for Best Picture. All told, the sequel took home six Oscars. Even the arguably ill-fated The Godfather: Part III, which came out in 1990, was nominated for seven Academy Awards.
Well, we've decided to celebrate the Oscars with a "Godfather" ETF portfolio. If the Corleones were around today, they might clean, er, invest some money in the following ETFs.
1. iShares MSCI Italy Index Fund (EWI) Before anyone accuses the Professor of ethnic stereotyping, he's going to tell you he's half Italian, and that's true. Seriously, the iShares MSCI Italy Index Fund is a hard fund to endorse for the obvious reason that Italy could very well be next on Europe's hit parade after Greece and Portugal.
That said, EWI is up over 12% year-to-date, and if the volume could ever come into this thing to support a move above $14, the upside for short-term traders could be worth the risk. Put a stop at $12 if you're getting involved here.
2. Market Vectors Steel ETF (SLX) It's quite possible that if Michael Corleone and Hyman Roth converted their ill-gotten fortunes to today's dollar, adjusted for inflation, they would still be "bigger than U.S. Steel (X)." That company, an SLX constituent, has a market cap of $4 billion. SLX has been a stout performer for several months.
However, the action hasn't impressed this month. If SLX can consolidate in the $54-$55 without dropping below the low end of that range, it's worth a look for a run to $60 as a swing trade.
3. PowerShares DB Italian Treasury Bond Futures ETN (ITLY) New and still thinly traded, the PowerShares DB Italian Treasury Bond Futures ETN measures the performance of a long position in Euro-BTP futures with an original term of no longer than 16 years and remaining term to maturity of not less than eight years and six months and not more than 11 years as of the futures contract delivery date. So if you're willing to bet on Italian bonds being attractive again at some point, ITLY might be worth a look. Remember, Italy is the third-largest bond issuer in the world.
4. Market Vectors Gaming ETF (BJK) There are legitimate reasons to get involved with BJK, another obvious constituent for this list. In the near term, BJK's chart is strong and the ETF could be at a new 52-week high in a matter of weeks. Over the long haul, BJK's international exposure has the potential to deliver even more upside.
5. Technology Select Sector SPDR (XLK) Michael Corleone owned shares of Dow component IBM (IBM). He told a Senate committee as much in the Godfather II. IBM is XLK's third-largest holding at over 8%, making the ETF a fine way of getting involved with three triple-digit tech darlings for less than $29. We're talking about Apple (AAPL) and Google (GOOG) in addition to IBM. Combined, that trio represents almost a third of XLK's weight.
Editor's Note: This content was originally published on Benzinga.com by The ETF Professor.
Below, find some more great ETF and market content from Benzinga:
S&P Touts A Growth ETF Led By Apple
By The ETF Professor
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