July's Best ETFs: Pro-Biotech, or Anti-Commodity
In July, the best-performing exchange-traded funds bet either against commodities, or on biotechnology stocks.
With the sharp pullback in the price of oil to the $110 level from the $140 level, the UltraShort Oil & Gas ProShares (DUG) gained 32.24% in July. The fund tracks the inverse of the Dow Jones U.S. Oil & Gas Index with 200% leverage.
The second-best performer, iShares MSCI Turkey Investible Market Index Fund (TUR), added 25.23% for the month. This index fund, which began trading on March 28, is off to a good start.
Two other hot newcomers with even shorter track records focus on shorting commodities. For July, the PowerShares DB Commodity Double Short ETN (DEE) is up 23.06%. Over the same period, the PowerShares DB Agriculture Double Short ETN (AGA) returned 21.70%.Most of the remaining funds on the list hold biotech stocks like Genetech (DNA), Amgen (AMGN) and Biogen Idec (BIIB). The best-performing of these biotechnology funds are the SPDR S&P Biotech ETF (XBI) and the Biotech HOLDRs Trust (BBH), appreciating 20.10% and 19.75%, respectively. Climbing out of the abyss, the Regional Bank HOLDRs Trust (RKH) halved its loss over the last year with a solid, 16.60% performance in July. Top holdings include JPMorgan Chase (JPM), Wells Fargo (WFC) and Bank of America (BAC).
|Best Performing ETFs in July|
|Fund (Ticker) Rating||1 Month Total Return %||3 Month Total Return %||Objective|
|ProShares Ultra Short Oil & Gas (DUG) E||32.24||13.27||Sector - Energy/Natural Res|
|iShares MSCI Turkey Inv Mkt Idx (TUR) U||25.23||6.45||Non-US Equity|
|PowerShares DB Commodity Double Sht (DEE) U||23.06||NA||Growth - Domestic|
|PowerShares DB Agri Double Sht (AGA) U||21.70||NA||Growth - Domestic|
|SPDR S&P Biotech ETF (XBI) B-||20.10||25.30||Sector - Health/Biotechnology|
|HOLDRS Biotech (BBH) C+||19.75||26.56||Sector - Health/Biotechnology|
|First Trust AMEX Biotechnology (FBT) C-||17.29||15.57||Sector - Health/Biotechnology|
|HOLDRS Regional Bank (RKH) D+||16.60||-14.22||Sector - Financial Services|
|iShares Nasdaq Biotechnology (IBB) C+||15.70||14.80||Sector - Health/Biotechnology|
|PowerShares Dynamic Biotech&Genome (PBE) C-||15.65||12.13||Sector - Health/Biotechnology|
|Source: TheStreet.com Ratings|
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