The 5 Best ETFs to Invest for 2013

Buying targeted dividend ETFs is easier than buying high-yield dividend stocks.
Dividend stocks were red-hot last year as the über-volatile market sent investors headlong into what has traditionally been the most stable segment of the equity universe. And while it isn’t likely we’ll see quite as much volatility in 2012 as we did in the final four months of 2011, powerful unknowns, such as Europe’s unresolved debt issues and China’s economic slowdown, could put real pressure on global economic growth — and by extension, the fate of the world’s equity markets. That means we could be in for an extended period of volatility and more capital inflows into the dividend space.
As investors, we can buy a well-thought-out group of solid, high-profile dividend stocks to gain exposure to the segment. But it’s easier to buy targeted dividend ETFs that already contain baskets of the best — and highest-yielding — dividend-paying securities.
The 5 Best ETFs to Invest for 2013 - iShares Dow Jones Select Dividend Index
The iShares Dow Jones Select Dividend (ETF) (NYSE:DVY) is an ETF pegged to the Dow Jones index bearing its name. This ETF really saw gains during the final three months of 2011, perhaps the most volatile time for stocks all last year. The fund surged 11% over that period, and that gain came with a 3.44% annual yield (as of Jan. 13). DVY counts among its top holdings such stellar corporate names as Lorillard (NYSE:LO), Chevron (NYSE:CVX), Kimberly-Clark (NYSE:KMB) and McDonald’s (NYSE:MCD), to name just a few. The fund’s expense ratio is only 0.40%, making the cost of owning these high-end performers very attractive.
SPDR S&P International Dividend
International stocks were by no means the best performers last year, but that didn’t stop the SPDR S&P International Dividend (ETF) (NYSE:DWX) from delivering a solid dividend yield of 4.02%. DWX’s expense ratio is 0.45%, just slightly higher than the domestic-equity focused DVY. For this modest cost, you get diversified exposure to international dividend stocks in income sectors such as telecommunications, utilities and financials.
The 5 Best ETFs to Invest for 2013 - WisdomTree Equity Income Fund
WisdomTree Equity Income Fund (NYSE:DHS) enjoyed a good year, and it performed particularly well in the final quarter. The fund is up almost 8% over the past three months, and that comes with an annual yield of 3.31%. Its holdings are based on WisdomTree’s Equity Income Index, which reads like a Who’s Who of dividend stalwarts. Companies such as AT&T (NYSE:T), General Electric (NYSE:GE), Johnson & Johnson (NYSE:JNJ) and Procter & Gamble (NYSE:PG) top the list of payout performers you get when you own DHS. And at an expense ratio of just 0.38%, you get these great companies on the cheap.
The 5 Best ETFs to Invest for 2013  - iShares S&P U.S. Preferred Stock Index Fund
The iShares S&P U.S. Preferred Stock Index Fund (NYSE:PFF) is an ETF that gives you exposure to preferred stocks. I like this fund primarily because of its outstanding 6.99% yield, but I also like it because it diversifies your income portfolio by owning the preferred shares of some of the world’s best companies. HSBC Holdings (NYSE:HBC), General Motors (NYSE:GM), Wells Fargo (NYSE:WFC) and many others have issued high-yield preferred shares, and the easiest and cheapest way to own these equities — at an expense ratio of just 0.48% — is to have PFF in your portfolio.
The 5 Best ETFs to Invest for 2013 - Claymore/Zacks Multi-Asset Income Index
Clamymore/Zacks Multi-Asset Income Index (ETF) (NYSE:CVY) is perhaps the most eclectic fund of my five best ETFs for 2012. CVY has had a great run over the past three months, vaulting nearly 6% while offering an annual yield of 5.42%. One huge reason to love CVY is that it contains a host of different types of high-yield securities. In addition to domestic and international stocks, the fund holds real estate investment trusts, master limited partnerships, closed-end funds, Canadian royalty trusts and traditional preferred stocks. Owning CVY gives you the best of the best when it comes to income securities at a quite acceptable 0.78% expense ratio

Top 5 Emerging Growth Stocks to Buy for January in 2012

If you have cash to invest this month, I highly recommend these five below. Here they are, in no particular order:
Taiwan-based Silicon Motion Technology (NASDAQ:SIMO) has its hand in lots of hot markets and is a big player in flash memory storage — flash memory cards, USB flash drives, card readers and solid-state hard drives. In fact, most of the NAND flash and next-generation flash products on the market — whether produced by Samsung (PINK:SSNLF), SanDisk (NASDAQ:SNDK), Toshiba, Micron (NASDAQ:MU) or Intel (NASDAQ:INTC) — are supported by Silicon Motion controllers. Silicon Motion also produces multimedia chips including embedded graphics processors, image processors and TV tuners. Lastly, it has been increasingly focused on controllers for smartphones, tablets and notebook PCs, as well as wireless transceivers for 4G LTE smartphones and tablets.
In the third quarter, Silicon Motion’s sales rose 25% to $63.2 million compared with $50.5 million in the second quarter. Looking forward, the analyst community is expecting annual fourth-quarter sales growth of 51% and 88.9% earnings growth. In the past three months, the analyst community has revised their consensus earnings estimate 32% higher — a phenomenon that typically precedes blowout earnings surprises.
Top 5 Emerging Growth Stocks to Buy for January in 2012 - Questor Pharmaceuticals (NASDAQ:QCOR) likes a challenge. As a specialist of difficult-to-treat central nervous system disorders, the company has been particularly successful with its multiple sclerosis treatment, H.P. Acthar Gel. The company also makes Doral, which is used for the treatment of insomnia. In the massive biotechnology industry, Questcor is top-notch in terms of earnings per share growth and return on equity.
For the fourth quarter, the analyst community is expecting 127.4% annual sales growth and 265.7% earnings growth of 38 cents per share. In the past three months, the analyst community has revised their consensus earnings estimate 32.6% higher. Typically, such positive analyst earnings revisions precede future earnings surprises.
Top 5 Emerging Growth Stocks to Buy for January in 2012 -Hansen Natural (NASDAQ:HANS) is the mastermind behind Monster, a dominant energy drink in the U.S. Looking at a can of Monster Energy drink, the flashy staple of sleep-deprived college students, one wouldn’t think that the company’s humble beginnings stem back to just one father and three sons working with a juicer in Southern California. In fact, although Hansen sells supercharged drinks like Monster and Java Monster, most of its drink roster is actually very wholesome. For example, it has 30 real fruit and spice soda flavors, a number of immune system-boosting drinks, vitamin waters and an array of teas and lemonades.
In recent quarters, Hansen Natural has reported “monster” sales and profit growth. Third-quarter sales jumped 24% from $381.5 million last year to $474.7 million this quarter. Over the same period, net income also rose 24% to $82.4 million, or 88 cents per share. Plus, speculation is heating up that Monster might be an acquisition target by Red Bull or one of the major soft drink companies. With Red Bull’s recent decision to pull out of NASCAR as a sponsor, a “monster” acquisition might be just what the energy drink maker needs to capture additional U.S. market share.
Top 5 Emerging Growth Stocks to Buy for January in 2012 - Spectrum Pharmaceuticals Inc. (NASDAQ:SPPI) is familiar pharmaceutical company I once discussed in the Top 5 Emerging Growth Stocks for December. Spectrum specializes in oncology — the treatment of cancer — and currently has two cancer treatments on the market: Fusilev, a treatment for advanced colon cancer, and Zevalin, a treatment for a type of lymphoma.
But what really excites me about this company is what it has in its pipeline: Spectrum has more than 10 drugs in either late-stage development or development! This includes Apaziquone, a treatment for bladder cancer, Belinostat, another lymphoma treatment and Ozarelix, a treatment of prostate cancer. This is a midsize biotechnology company already at the top of the industry — in terms of return on equity — and is about to experience blowout growth.
Top 5 Emerging Growth Stocks to Buy for January in 2012 - Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ) has two flagship drugs — Xyrem, the only narcolepsy treatment approved by the World Anti-Doping Agency, and Luvox CR, its obsessive compulsive disorder treatment. But there are a number of exciting developments on the near horizon, including Jazz’s massive buyout of Dublin-based Azur Pharma Ltd., which should close within the next couple of weeks, and the company’s subsequent moving of its headquarters to Dublin. After the move, Jazz will be able to take advantage of Ireland’s competitive tax rate.
The company’s sales climbed 63.3% and earnings surged 115.6% in the third quarter, and for the fourth quarter, the analyst community is expecting 54% annual sales growth and 70.5% earnings growth. Jazz Pharmaceuticals is flush with cash and recently prepaid $33 million in long-term debt, and I’m excited to see how developments play out in the company’s next earnings release. Also, despite those who might think that Jazz Pharma’s bullish run looks tapped out, I remain optimistic.