This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Energy Sector Again Dominates Top ETF List

The results for the best three-month performers in the TSC ETF universe is clearly stacked towards energy and natural resources. This is the only real sector that has yet to entertain the specter of an earnings downgrade in the current slaughterhouse that is the U.S. market.

Gasoline and commodity prices maybe driven in some part by speculation, which in turn is being fueled by loose monetary policy. It's likely that a low Fed funds rate is permitting a form of "commodity carry trade" to exist.

If the price of oil stays high, earnings for this sector will hold up much better at a time when the earnings from almost every other sector in the economy are likely to come under pressure and revised down. So we may see more of the same dominance of energy and natural resource ETFs going forward -- but how long this can last remains to be seen.

The top ETF was not, however, exposed to the oil market, but to coal -- in particular the Market Vectors Coal ETF (KOL), which is designed to generate results corresponding to the price and yield of the Stowe Coal Index.

For comedy relief we have the HOLDRS B2B Internet ETF (BHH) in second place, which is like a Model T Ford leading at Daytona. This is an absurd fund for absurd times, and it is the epitome of nondiversification, investing 90.6% of its assets in just one company: Ariba Incorporated (ARBA), which provides on-demand spend management solutions. ARBA is rated a SELL by TSC Ratings.

The fund also has 10% of its assets in the Internet Capital Group (ICGE) a provider of software and services to reduce transaction costs between firms. This company is rated a HOLD by TSC Ratings.

Fund Name TICKER TSC Grade Category 3 Month Return 1 Month Return
Market Vectors Coal ETF KOL U Sector - Energy/Natural Res 52.03 7.01
HOLDRS B2B Internet BHH C- Growth - Domestic 45.95 -10.00
United States 12 Month Oil Fund USL U Sector - Energy/Natural Res 45.27 11.77
PowerShares DB Oil Fund DBO C Sector - Energy/Natural Res 41.27 11.58
PowerShares DB Energy Fund DBE C+ Sector - Energy/Natural Res 40.05 10.00
United States Oil Fund USO B- Sector - Energy/Natural Res 39.70 10.29
iPath S&P GSCI Crude Oil Total Ret OIL C Sector - Energy/Natural Res 39.27 10.20
ELEMENTS RIC Energy Total Return RJN U Sector - Energy/Natural Res 39.13 10.08
ProShares Ultra Oil & Gas DIG A- Sector - Energy/Natural Res 36.05 5.08
SPDR S&P Metals & Mining ETF XME B Equity Income 35.71 8.07
iPath DJ AIG Energy Tot Ret Sub JJE U Sector - Energy/Natural Res 35.47 10.84
First Trust ISE-Revere Natural Gas FCG C Equity Income 34.09 6.91
ProShares Ultra Short Financials SKF C Sector - Financial Services 33.28 41.99
Sam Patel, CFA, is the manager of mutual fund research for the Ratings.

In keeping with TSC's Investment Policy, employees of Ratings with access to pre-publication ratings data must pre-clear any potential trade through the legal department, and are prohibited from trading any security that is the subject of an unpublished rating revision until the second business day after the rating is published.

While Patel cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DBO $8.30 -0.24%
DBE $11.33 -0.27%
USL $17.62 -0.11%
KOL $8.21 -2.26%
AAPL $94.01 -1.20%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs