ETFs Have a Big Year

With more than 97% of exchange-traded funds ahead for the year, 2006 can only be classified as a terrific year for ETFs.

Of the 361 ETFs tracked by TheStreet.com Ratings, performance statistics for full-year 2006 is available for more than 200 of them.

All but six of the group managed positive total returns for the year, with the average fund ahead by a healthy 17.9%.

A table of the best and worst performers for 2006 (below) shows that the big rewards came to funds investing outside the U.S. Robust returns in the overseas markets were supplemented by strength in foreign currencies relative to the dollar.

The list of the top 20 funds includes 12 non-U.S. equity ETFs and one emerging-markets fund.

Three of the top four funds were focused on Asian investments, with China funds capturing the top two spots.

Three of the top 10 performing ETFs aimed their investment at Latin America.

Conversely, it was not a stellar year for tech ETFs. The bottom four included two Internet ETFs, a semiconductor and a broadband fund.

Biotech ETFs also place among the bottom 20 funds.

2006 ETF Winners and Losers
Fund Name	Ticker	Investment Objective	Market Cap ($Mil)	Calendar 2006 Total Return (%)	TSC Rating Grade
Calendar 2006 Winners
iShares FTSE/Xinhua China 25	FXI	Non-US Equity	4,031.4	82.98	A+
PowerShares Gldn Drgn Hltr USX Chn	PGJ	Non-US Equity	293.8	53.24	A+
iShares MSCI Spain	EWP	Non-US Equity	213.0	49.25	A+
iShares MSCI Singapore	EWS	Non-US Equity	711.8	45.68	A+
iShares MSCI Mexico	EWW	Non-US Equity	925.9	44.80	A-
iShares MSCI Sweden	EWD	Non-US Equity	183.1	43.71	A+
iShares MSCI Brazil	EWZ	Non-US Equity	2,808.3	43.22	B-
HOLDRS Internet Infrastructure	IIH	Growth	47.0	41.45	C-
iShares S&P Latin American 40	ILF	Non-US Equity	1,342.8	40.99	B+
iShares Cohen & Steers Realty Major	ICF	Growth & Income	2,435.9	38.43	C-
BLDRS Emerging Market 50 ADR	ADRE	Emerging Market Equity	80.9	37.35	C
First Trust Value Line Dividend	FVD	Growth & Income	536.5	37.34	B
HOLDRS Telecom	TTH	Growth	320.1	37.20	B-
iShares MSCI Austria	EWO	Non-US Equity	452.2	36.76	A+
Vanguard Telecom Serv ETF	VOX	Equity Income	79.5	36.72	A+
iShares MSCI Malaysia	EWM	Non-US Equity	449.2	36.30	B+
iShares MSCI Belgium	EWK	Non-US Equity	169.4	35.61	A
streetTRACKS Wilshire REIT	RWR	Growth & Income	1,194.4	35.55	C-
iShares MSCI EMU	EZU	Non-US Equity	1,988.8	35.49	A+
Vanguard REIT ETF	VNQ	Growth & Income	1,503.3	35.18	B+
Calendar 2006 Losers
HOLDRS Internet	HHH	Growth	230.3	-19.70	E-
HOLDRS B2B Internet	BHH	Growth	24.8	-10.02	E-
HOLDRS Semiconductor	SMH	Growth	2,684.0	-7.44	E-
HOLDRS Broadband	BDH	Growth	115.2	-7.00	E-
HOLDRS TeleBras	TBH	Non-US Equity	703.2	-6.86	E-
HOLDRS Biotech	BBH	Health/Biotechnology	1,708.3	-4.36	D+
iShares Goldman Sachs Semiconductor	IGW	Equity Income	289.0	0.23	E-
iShares Lehman TIPS Bond	TIP	Government Bond	4,119.2	0.29	D+
iShares Nasdaq Biotechnology	IBB	Health/Biotechnology	1,628.3	0.67	E-
iShares Lehman 20+Yr Treasury Bond	TLT	Government Bond	1,481.1	0.72	D+
PowerShares Dynamic Bldg & Cons	PKB	Equity Income	22.5	1.63	E+
PowerShares Dynamic Biotech&Genome	PBE	Health/Biotechnology	Health/Biotechnology	2.31	E+
iShares Lehman 7-10Yr Treasury Bond	IEF	Government Bond	1,637.7	2.53	D
iShares Goldman Sachs Network	IGN	Growth	196.1	3.77	E-
iShares Lehman 1-3Yr Treasury Bond	SHY	Government Bond	5,106.6	3.89	D
iShares Lehman Aggregate	AGG	General Bd - Investment Grade	3,952.0	3.91	D+
iShares iBoxx $ Inves Grade Corp Bd	LQD	Corporate - Investment Grade	2,583.3	4.24	D
PowerShares Val Line Timeliness Sel	PIV	Equity Income	171.6	4.58	U
PowerShares Dynamic Semiconductor	PSI	Equity Income	91.3	4.63	E-
PowerShares Lux Nanotech	PXN	Growth	101.8	5.06	E
Source: TheStreet.com Ratings