Five Mega-Cap ETFs Your Broker Forgot To Mention


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


So you may not like investing like your grandfather, eschewing stodgy old mega-cap names for faster moving growth stocks and that's fine. There's a time and a place for every investment strategy, but these days, investors with longer time horizons should be looking for comfort and shelter with the bluest of the blue chips and the largest of the large-caps.Put another way, Warren Buffett probably isn't losing much sleep these days. Conversely, hedge fund managers running portfolios littered with high-beta fare probably have some explaining to do to their well-heeled clients.With that, let's have a look at some mega-cap ETFs that your broker may have overlooked and that your grandad would love.1) Vanguard Value ETF(NYSE: VTV):We're not going to lie: VTV's recent performance has not been pretty, but that is probably by virtue of Dow components Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX) and JPMorgan Chase (NYSE: JPM) find a home among the ETF's top-10 holdings. Overall, VTV holds 415 large-caps and has $15.7 billion in assets under management. With an expense ratio of just 0.12%, which Vanguard claims is lower than 91% of ETFs with comparable holdings, VTV is an ideal way for the indecisive investor to gain mega-cap exposure. With that paltry expense ratio, VTV is a superior alternative to comparable mutual funds and is an ideal ETF for retirement accounts.2) First Trust Mega Cap AlphaDEX Fund (NYSE: FMK):FMK is just four months old and may be a victim of bad timing more than anything else. The expense ratio of 0.7% is a tad high for this genre of ETF, but FMK does offer some growth potential as Amaznon (Nasdaq: AMZN) is its top holding and other growth names such as VMWare (NYSE: VMW) can be found among the ETF's holdings. We'd feel better FMK if American International Group (NYSE: AIG) and Cisco (Nasdaq: CSCO) were eliminated from the lineup.3) iShares S&P Asia 50 Fund (NYSE: AIA):AIA is actually home to 51 stocks, but the ETF might just be the best way for conservative investors get Asia exposure. South Korea and China combine for 52% of AIA's weight and if one considers Taiwan and Hong Kong China plays, AIA is 60% exposed to China. That's a problem in the current environment, but if AIA finds support in the $38-$39 area, it's worth a look.4) iShares NYSE 100 Index Fund (NYSE: NY):Another one with a deceptive title as NY is actually home to 101 names, but with an expense ratio of 0.2%, we're not going to quibble. If you're looking for an ETF that will help you mimic Berkshire Hathaway's (NYSE: BRK-A, BRK-B) equity portfolio without buying every stock individually, NY is a great tool because nearly every stock Berkshire owns a stake in can be found in this ETF.5) SPDR Global Dow ETF (NYSE: DGT):DGT is home to 150 stocks, though none receive an allocation of more than 0.97% and the two that get that weight are NOT your grandfather's value stocks. Apple (Nasdaq: AAPL) and Amazon are DGT's largest holdings, but go on down the line and you'll find more value-type plays. DGT is nearly 56% weighted to non-U.S. stocks. For a 12-year old fund with over $111 million in AUM, DGT doesn't get a lot of press, but support looks firm $50, meaning a small position could be started in the near-term.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: Long IdeasNewsBroad U.S. Equity ETFsShort IdeasSpecialty ETFsNew ETFsTechnicalsGlobalAfter-Hours CenterTrading IdeasETFsCommunications EquipmentComputer HardwareConsumer DiscretionaryEnergyFinancialsInformation TechnologyIntegrated Oil & GasInternet RetailMulti-line InsuranceOther Diversified Financial ServicesSystems Software