Holiday Rally for Major Indices

These past few days has been big for the three major indices, the Dows, Nadaq and S&P 500 as all of them posting significant gains. The primary reasons of the surge are dropping oil prices and positive economic outlook despite housing bubble worry and fed's aggressive interest rate hike.

The Dows has gained more than 200 points or 2% since 17,000 of last Thursday. Nasdaq, also fueled by the investor confidence has also gained 60 points of 2.7% in 5 days. S&P 500 is also on a roll with 30 points or 2.4% gain during the same period.

There are ways to put the indices rally right in your portfolio. One is to buy the mutual funds, especially the index fund which closely reflect the up and down of the indices. If you do not like the expenses and would like something more flexible such as stock, you could consider getting the ETFs.

ETFs
ETFs which stands for Exchange Traded Funds are what we called the "behave like fund trade like stock" type of stocks. It gives you the flexibility of multiple trading within a day and also has the stableness of the mutul funds. So for example if you want to include Dow Jones index in your portflio, you would buy Diamond Trust(DIA). For Nasdaq you could get Nasdaq 100 Trust or mostly known by its symbol QQQQ while you could also get The Spider in your portfolio SPY which represents S&P 500.