The US Aerospace and Defense industry has been doing very well this year. With the war on terrorism raging on and not ending anytime soon, there are many great plays in this sector.

But what stocks should you own—Boeing, General Dynamics, Lockheed Martin, United Technologies? There’s an exchange traded fund that will allow you to own all these names and more.

The ETF is iShares Dow Jones US Aerospace & Defense (Symbol: ITA), which follows the Dow Jones US Aerospace & Defense Index. The aerospace side consists of companies that manufacture, assemble and distribute aircraft and aircraft parts. On the defense site, the companies produce components and equipment for the defense industry—military aircraft, radar equipment and weapons.

Here’s a breakdown of its top 10 holdings, which account for just over 60% of total assets.

The energy sector has been on fire all year long. Oil prices continue to rise and there’s seemingly no end in sight. One way to profit in the energy sector is to buy the Exchange Traded Fund XLE.

Before I continue, I must note that as of this writing (July 12, 2007) XLE is in my portfolio.

Energy Select Sector Spdr Fund (Symbol: XLE) is traded on AMEX and it closed at $73.23 on Wednesday.

If investing directly in gold isn’t an option for you, look to Exchange Traded Funds. On Wall Street, there are five ETFs that are gold investing oriented.

The one I like is streetTRACKS Gold Trust (Symbol: GLD). This ETF is a way to invest in gold and trade it like a stock.

One of the best investing developments in recent years is the emergence and growth of Exchange Traded Funds (ETFs). They are opening up a whole new world for many investors.

An Exchange Traded Fund is a basket of securities, and it trades just like a single stock would. ETF’s are somewhat of a buzzword these days and there’s good reason why.

ETFs can be created to follow a broad market, an international market, an industry, or some other investing composition.