5 Battered ETFs For Long-Term Investors

They say buy-and-hold investing is dead, but the proverbial “they” are painting with a broad stroke when that assertion is made. In the right circumstances, patience can be a virtue when it comes to investing. In that vein, plenty of once stellar performers in the ETF world have been sent tumbling in recent weeks. While many of those funds surely have downside left in them if the market resumes its bearish ways, others remain attractive bets for the investor that can extend his time horizon to 12 months or a little bit longer. Here are five ETFs that could be deliver substantial percentage gains over the next 12-18 months. Market Vectors Coal ETF KOL: Down almost 34% in the past three months, the Market Vectors Coal ETF has been battered by the risk on trade being turned off and some dour profit and production forecasts from several of its top-10 constituents. The thing about KOL and coal stocks is that they tend to be punished too severely in downturns. The benefit is investors can pick up good names at a substantial discounts. Since this is one of the more volatile unleveraged ETFs out there, don't jump in all at once if you want to start a position now. For example, if you want to buy 500 shares, spread that out over five transactions. Global X Uranium ETF URA: The good news is news related to Japan's nuclear fallout has cooled in recent months. The bad news is uranium is still viewed as a risky asset with substantial headline risk. All that said, the fundamentals for the uranium sector are strong. With URA trading below $8.50, the ETF is a call option with no expiration on a rebound in uranium stocks. Buy now, hold for 12 months and a gain of 25% or more is not unreasonable. First Trust ISE Cloud Computing Index Fund SKYY: The combination of SKYY's holdings and the boom in cloud computing make the ETF almost too hard to ignore at current levels. A rebound in tech stocks and the cloud movement could carry SKYY into the low- to mid-20s next year. Support is firm at $15 and look for a breakout above $18. iShares Dow Jones U.S. Oil Equipment Index Fund IEZ: Another case where you'll want to buy small to start. The iShares Dow Jones U.S. Oil Equipment Index Fund has shed 15.4% in the past month alone as oil prices have slid. Oil services stocks are intimately correlated to oil futures, but with oil's long-term demand trends still solid, IEZ's constituents look cheap here. Capturing IEZ around $45 or $46 in the near-term could lead investors to gains of more than 25% in a matter of months. Market Vectors Indonesia ETF IDX: Down almost 19% in the past month, the Market Vectors Indonesia ETF has been hammered ruthlessly by the move away from emerging markets fare. Support looks firm just below $24, but if the market deteriorates again, IDX could see the low 20s. However, if riskier assets are embraced in 2012 and emerging markets bounce, this ETF could see the high 30s.