Top-Performing ETFs That Still Have Legs

Finally, one fund on the list below that appears to be doing well really isn't and should be avoided. The Claymore/MAC Global Solar Energy Index ETF(TAN) found a solitary ray of sunshine in August, up 11.4%, before the rain clouds closed back in sending the shares to a record low in this five-month-old security. The fund's average P/E ratio of 109.5 is four times that of the S&P 500, implying there is more room to fall. If the presidential polls keep shifting toward the oil-drilling party, this fund may become an enticing short-sale candidate.

Best Performing ETFs for Each Objective in August
Objective	Fund (Ticker) Rating	August 2008 Total Return
Corporate - High Yield	PowerShares High Yield Corp Bond (PHB) U	0.73%
Corporate - Investment Grade	iShares Lehman 1-3 Year Credit Bond (CSJ) A+	0.45%
Emerging Market Equity	ProShares UltSht MSCI Emg Mkts (EEV) U	12.23%
Emerging Market Income	iShares JPMorgan USD Emg Mkts (EMB) U	0.72%
Equity Income	SPDR S&P Homebuilders ETF (XHB) E	12.29%
General Bd - Investment Grade	Vanguard Long-Term Bond ETF (BLV) B	1.27%
General Mortgage	iShares Lehman MBS Fixed-Rate Bond (MBB) A+	1.04%
Global Equity	iShares S&P Global Cons Disc Idx (RXI) D	2.18%
Global Income	SPDR Lehman Intl Treasury Bond ETF (BWX) U	-4.28%
Government Bond	Vanguard Extended Duration Treasury (EDV) U	6.11%
Growth - Domestic	HOLDRS Retail (RTH) C-	8.64%
Growth & Income	First Trust Lrg Cap Core AlphaDEX (FEX) D	2.84%
Municipal	Market Vectors LB AMT Fr Lng Mun (MLN) U	2.27%
Non-US Equity	ProShares UltraShort MSCI EAFE (EFU) U	8.66%
Sector - Energy/Natural Res	Claymore/MAC Glb Solar Energy Inx (TAN) U	11.36%
Sector - Financial Services	KBW Regional Banking ETF (KRE) D-	6.05%
Sector - Health/Biotechnology	HealthShares Dermatology and Wound (HRW) E	12.42%
Sector - Precious Metals	PowerShares DB Gold Double Sht ETN (DZZ) U	19.11%
Sector - Utilities	PowerShares Dynamic Utilities (PUI) C	2.91%
Source: TheStreet.com Ratings

As with any trading strategy, you can lose money. Remember to place stop-loss orders to help protect you from sudden moves against your positions.

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