TheStreet.com Ratings Initiates Coverage on Nine ETFs, Three Closed-End Funds

TheStreet.com Ratings has initiated coverage of three closed-end funds and nine exchange-traded funds that accrued a sufficient track record (one year) of risk and performance data by the end of August.

None of the closed-end funds earned a "buy" designation for their initial rating. The best of the three is the (AGD)Alpine Global Dynamic Dividend Fund (AGD), which earned a C+, or "fair", rating. It seeks high current dividend income for its shareholders. Yielding 9.59% over the last 12 months, this fund is achieving that goal. The fund returned 18.86% over that period, but would need to reign in its very high volatility to move from "hold" to "buy."

We have also initiated coverage of (JGV)Nuveen Global Value Opportunities Fund (JGV) at D-, or "weak". The fund is highly diversified across its various sectors with 23.4% holdings of mining shares, 12.5% telecommunications, 8.2% diversified financial services, 7.6% food, 6.9% oil & gas, and 3.4% electric. The biggest holdings are Nippon Telegraph & Telephone (NTT), Apex Silver Mines (SIL) and Tyson Foods (TSN). To move up in our rankings, improving upon the 1.62% one year total return performance would be helpful.

Lastly, the coverage of (FEO)First Trust/Aberdeen Emerging Opportunity Fund (FEO) was initiated with an E, or "very weak" rating after it lost 4.67% for the year. The company invests in both stocks and bonds, with about 40% of assets invested in equities, 44% in government and 14% in corporate fixed income securities. By country, 15.0% of its holdings are Brazilian companies, with 7.7% Mexico, 5.8% Argentina, 5.8% Turkey, and 4.5% Indonesia.

Two of the nine exchange-traded funds that began trading in July/August of 2006 have earned our top rating level of "excellent."