This Week's ETF Winners & Losers: Energy Sapped
Exchange-traded funds tracking energy were among the decliners this week despite an extraordinarily strong week for crude-oil futures.
Crude prices gathered an enormous amount of upward momentum this week and, in quick succession, smashed past the $130 and the $135 marks before easing to a 4.6% surge at $132.19 a barrel. Amid those moves, however, oil-and-gas giants Exxon Mobil (XOM) and ConocoPhillips (COP) each lost ground for the week as investors ended the week with profit-taking.
At the same time, concerns over rising fuel prices stuck it to transportation stocks, and the iShares Dow Jones Transportation Average (IYT) surrendered 4.2% over the past five sessions.The SPDR S&P Homebuilders (XHB) fund, meanwhile, plummeted 12.1% over the past week. Friday saw miserable existing-home sales data come to light, with the National Association of Realtors saying the housing backlog is at a 23-year high. Also, on Thursday, the Office of Federal Housing Administration said home prices suffered their worst quarterly drop on record last quarter, according to its purchase-only house-price index. Financial-space ETFs were also particularly hard hit in a week that saw Oppenheimer analyst Meredith Whitney predict that banks will take writedowns of at least another $170 billion by the end of next year, and that the effects of the credit crisis could linger even past 2009. Also earlier this week, The Wall Street Journal said that some banks' hedging strategies -- betting against funds tracking real estate and leveraged loans, for instance -- have backfired amid recovering U.S. shares this quarter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV