Forget The Scratch Off Cards, Here Are Some ETF Gift Ideas For The Holidays

christmas xmas santa presents holidays gifts mailman mail post usps

NEW YORK (TheStreet) – Christmas is fast approaching and people around the world are putting the final touches on their holiday wish-lists.

While images of games, toys, and the latest gadgets may be on the minds of many, investors with their loved ones’ long-term portfolios in mind may want to consider putting some promising ETFs under the tree this year.

iShares Gold Trust(IAU)/ Market Vectors Gold Miners ETF(GDX)

Necklaces, bracelets and earrings are always thoughtful and welcomed gift ideas for the holiday season. However, this year, investors considering precious metals for the holidays may want to consider skipping the jewelry and instead present their loved ones with a shiny new gold ETF.

This article originally appeared at TheStreet and is republished with permission.

Physically-based funds such as IAU or miner-related funds such as GDX are two ideas which look set to provide investors with a comfortable payoff looking to the future.

In 2010, these and other gold-related ETFs have prospered as droves of investors piled into gold and gold miners as a way to protect their portfolios against widespread global economic jitters.

Whether it was fears of sovereign debt contagion spreading through Europe, or concerns about the inflation picture in China, hardly a week went by this year where some sort of anxiety-producing issue didn’t capture headlines and stoke fears in the hearts of investors.

This all boded well for the yellow metal, which has managed to ascend to all-time highs and bring producers along for the ride.

Thanks to the popularity of gold and its accessibility through ETFs the yellow metal has evolved into an asset class of its own.

Although we appear to be well on the road to recovery, the New Year will likely hold both old and new hurdles to conquer. Investors can help their loved ones prepare for such a scenario by arming them with gold.

Market Vectors Coal ETF(KOL)

Although the idea of waking up on Christmas day to find coal in your stocking is a threatening prospect for many children, the black rock would likely make a well-received gift idea for long term ETF investors this year.

With developed nations continuing on the road to recovery and emerging countries such as China and India constantly seeking out ways to quench their near insatiable appetites for energy, coal looks primed for strength in the coming year. Already, forecasts for coal use in the developing world are promising. According to a Bloomberg report, China and India may increase outputs by 78% through 2011.

Market Vectors Coal ETF(KOL) is the perfect gift for coal bulls this holiday season. Using this fund, investors can gain access to the companies responsible for producing, transporting and storing this attractive fuel source. The fund is backed by household names including Peabody Energy(BTU), Consol Energy(CNX) and Alpha Natural Resources(ANR).

While the U.S. represents the largest geographic slice of its index, KOL’s reach expands well beyond our domestic shores. China, Indonesia, and Australia also make a respectable showing. This ensures that investors will gain substantial exposure to companies which will benefit from rampant energy demand from hot emerging markets.

Written by Don Dion in Williamstown, Mass.

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