Best ETFs in April Were Narrowly Focused

Several narrowly focused exchange-traded funds were at the top of their class in April.

The broadly diversified market inched ahead in the month. The small-capitalization stocks of the Russell 2000 Index gained 4.19%. The large-cap S&P 500 index did a bit better at 4.87%.

The best-performing ETF in the month was B2B Internet HOLDRs Trust(BHH), up 29.73% from March 31 to April 30. The turnaround in performance led to an upgrade in the rating of this fund to C-, Hold, from E-, Sell.

The fund is so narrowly focused to U.S. B2B Internet companies that it has only two holdings, with an allocation of 85.7% Ariba(ARBA) and 14.3% Internet Capital Group(ICGE).

If two holdings is one too many for you, the B+ rated MACROshares Oil Up(UCR) needed only one target to return 25.39% in April.

As billions of people around to world strive to improve their standard of living, aggregate demand for oil is not likely to significantly abate even during a U.S. recession. This fund's second-place performance is a symptom of that phenomenon.

Two other energy funds, ProShares Ultra Oil & Gas(DIG), up 21.76%, and Market Vectors Coal ETF(KOL), up 16.41%, benefited from this trend.

Honorable mention goes to Brazil, China, and India, which captured five of the 10 spots on our list of best-performing ETFs.

It's no wonder that these are the same countries where foreign direct investment helped spark business activity, the accumulation of private wealth, increased local consumer demand and the prosperity of some of their largest publicly traded companies.

With returns of 17.97% and 17.25% in April, SPDR S&P China ETF(GXC) and iShares MSCI Brazil(EWZ) represent pure plays.

If you're looking for an ETF that covers all three countries, check out the Claymore/BNY BRIC ETF(EEB). This A+ rated ETF has restricted investments in Russia to 4.3% of its assets, because any commercial success faces the renewed risk of nationalization.

10 Best-Performing ETFs for April
Fund (Ticker) Rating	Total Return 1 Month %	Total Return 1 Year %	Objective
HOLDRS B2B Internet (BHH) C-	29.73	33.70	Growth - Domestic
MACROshares Oil Up (UCR) B+	25.39	52.41	Sector - Energy/Natural Res
ProShares Ultra Oil & Gas (DIG) B+	21.76	45.90	Sector - Energy/Natural Res
SPDR S&P China ETF (GXC) C	17.97	48.82	Non-US Equity
iShares FTSE/Xinhua China 25 (FXI) B+	17.50	52.74	Non-US Equity
iShares MSCI Brazil (EWZ) B+	17.25	74.49	Non-US Equity
Rydex 2x S&P MidCap 400 ETF (RMM) U	16.74	NA	Equity Income
First Trust ISE Chindia Index Fund (FNI) U	16.50	NA	Equity Income
Market Vectors Coal ETF (KOL) U	16.41	NA	Sector - Energy/Natural Res
Claymore/BNY BRIC ETF (EEB) A+	16.12	61.19	Equity Income
Source: TheStreet.com Ratings

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