Niche ETFs To Diversify A Portfolio

LIT has started to rally after hitting a 14 month low, and looks to be gaining some momentum. The recent move higher has the ETF trading at the best level in over a month. The ETF is down 4 percent over the last 12 months and 6 percent over the last six months. The ETF has an expense ratio of 0.75 percent.

Related Link: Global X Launches Two New Rules-Based ETFs

Guggenheim Solar ETF

The Guggenheim Solar ETF TAN is another niche ETF that seems to have found a bottom. The ETF follows 29 publicly traded companies across seven countries that are involved in the solar industry. The top individual holdings include:

The solar ETF is down 16 percent over the last 12 months and 13 percent over the last six months. However it is attempting to hold a double bottom at the $33 area and could be setting up for a bounce. TAN has an expense ratio of 0.76 percent.

Cambria ETF Trust

The Cambria ETF TrustSYLD consists of 103 publicly traded companies with market caps greater than $200 million that rank among the highest in paying cash dividends, engaging in net share repurchases and paying down debt on their balance sheets. The top holdings include:

Related Link: New Active ETF Seeks To Capture Global Momentum

SYLD is up 9 percent over the last 12 months and is 5 percent over the last six months. The ETF is now testing its 52-week high set in early September. A close above $31.65 would be a breakout and potential buy signal. The ETF has an expense ratio of 0.59 percent.

With the year coming to an end, it may be a good idea to add some niche ETFs to a portfolio to diversify as money is rotating between sectors before 2015 begins.