The Top ETFs for 2013

Focus: FUNDS

Jim Lowell Image Jim Lowell Senior Partner & Chief Investment Strategist, Adviser Investments

There's been some progress on the global economic scene, but it all starts in the US for 2013, observes Jim Lowell of ETF Advisor.

Looking at where we are and thinking about where we are headed, I like US multinational mega caps (they offer quality growth at still reasonable prices with a yield kicker). State Street's SPDR Dow Jones Industrial (DIA), Guggenheim's S&P 500 Pure Growth (RPG) and the iShares S&P 100 (OEF) are my mega-cap cornerstones.

I'm also interested in a mid-cap skew. Real companies, real earnings, real management, real track records through recession and recovery, with enough pricing discrepancies to create values in the hands of informed investors makes the mid-cap camp attractive, with my preferred pick being the Guggenheim S&P 400 Mid Cap Pure Growth (RFG).

Europe & Japan
Unlike our resolute avoidance of Europe in 2012, for 2013 I'm increasing our stakes in ETFs that can bottom fish there but have the wisdom to know that bottom fishing can become a bottomless pursuit if policy risks there and here take a turn for the worse.

Depending upon how the fiscal cliff snafu pans out, 2013 may start out looking like a falling souffle for any international play. But, unloved and overlooked are two key ingredients to my contrarian interests in general and in Europe specifically in 2013.