Investors Pour Money Into Long-Bond ETFs

Other observations from the list include the presence of investment-grade corporate bonds, some of which are virtually guaranteed via the plethora of government-bailout plans. As I stated in my previous article, if the federal government is going to support the corporate-credit market, it has to be ready to support the municipal market. This gives risk-averse investors a reason to consider municipals.

The PowerShares DB US Dollar Bullish Fund(UUP Quote) is an interesting inclusion on the list, but that's as far it goes because the direction of the U.S. dollar is unknown, especially in light of possible interest-rate cuts and the amount of funding from new Treasury issues the Obama government looks set to make. This may lead to a weakening of the U.S. dollar.

At the bottom of the list is the ProShares Short Small Cap 600(SBB Quote), which still may offer an opportunity into 2009. The stock-market downdraft is by no means over.

Top Rated ETFs: Driven by Fear Name Ticker TSC Grade 1 Month Return 3 Month Return Objective Description iShares Lehman 3-7 Year Treasury Bd IEI A+ 3.68 6.59 Government Bond iShares Lehman 10-20 Yr Treasury Bd TLH A+ 11.89 8.68 Government Bond PowerShares VRDO Tax-Free Weekly PVI A+ 0.36 1.04 Municipal - High Yield iShares Lehman Intrm Govt/Crdt Bond GVI A+ 3.69 1.45 General Bd - Investment Grade SPDR Lehman Intermediate Tr Treas ITE A+ 3.66 5.4 Government Bond iShares Lehman Short Treasury Bond SHV A+ 0.21 0.87 Government Bond SPDR Lehman Aggregate Bond ETF LAG A+ 3.41 3.95 General Bd - Investment Grade PowerShares DB US Dollar Bullish Fd UUP A+ 0.6 9.01 Growth - Domestic iShares Lehman Govt/Credit Bond GBF A+ 5.36 0.93 Government Bond ProShares Short Small Cap 600 SBB A+ 3.47 34.9 Growth - Domestic