ETFs With Biggest Upgrades Bet Against the Market

Here are lists of the five most-improved and five most-deteriorated ETF ratings from May 31 to June 30.

All the funds on the upgrade list are ProShares ETFs betting against segments of the market.

The most-improved exchange-traded fund this month is ProShares UltraShort Russell Mid Cap Growth(SDK Quote). This fund jumped 10 notches to A, or buy, in June, from D-, or sell, in the May ratings by betting against the 505 members of the Russell Midcap Growth Index.

Index members are mid-sized companies that tend to have higher price-to-book ratios and growth expectations, including Micron Technology(MU Quote) and Mariner Energy(ME Quote).

Also climbing 10 notches, ProShares Ultra Short Russell 2000 Growth(SKK Quote) sailed all the way up from a sell rating of D- to a buy rating of A.

This fund tracks the inverse of all 1,217 growth stock members of the Russell 2000 Growth Index with names like Barnes Group(B Quote), Curtiss-Wright(CW Quote), EnergySolutions(ES Quote) and Gartner(IT Quote).

The most-deteriorated list includes funds being downgraded to sell or hold from buy.

The most extreme drop in June ETF ratings befell PowerShares Dynamic Basic Materials Sector Portfolio(PYZ Quote), plummeting eight notches to a rating of D from A- for May.

The fund tracks Dynamic Basic Materials Sector Intellidex Index members like Newmont Mining(NEM Quote), Du Pont(DD Quote), Air Products & Chemicals(APD Quote) and United States Steel(X Quote).

Also taking an eight-notch drive to C- from A+, the PowerShares Cleantech Portfolio(PZD Quote) gave up its accumulated gains from April and May, sliding back into the middle of the exchange-traded fund pack.

Top 5 Exchange-Traded Fund Upgrades
Fund (Ticker) Current Rating	Previous Rating	Objective
ProShares Ult Sht Rus Mid Cp Growth (SDK) A	D-	Growth - Domestic
ProShares Ultra Sht Rus 2000 Growth (SKK) A	D-	Growth - Domestic
ProShares Ultra Short Semiconductor (SSG) B+	E+	Equity Income
ProShares Short Midcap 400 (MYY) B+	D-	Growth - Domestic
ProShares Short QQQ (PSQ) B	E+	Growth - Domestic
Source: TheStreet.com Ratings

Top 5 Exchange-Traded Fund Downgrades
Fund (Ticker) Current Rating	Previous Rating	Objective
PowerShares Dynamic Basic Materials (PYZ) D	A-	Equity Income
PowerShares Cleantech Portfolio (PZD) C-	A+	Equity Income
Market Vectors Environment Ind ETF (EVX) C-	A+	Equity Income
First Trust Materials AlphaDEX (FXZ) D	B+	Equity Income
PowerShares Water Resources (PHO) D	B+	Equity Income
Source: TheStreet.com Ratings

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