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

The Best ETFs of 2008

Semis on Shaky Ground

Running neck and neck with SDK is the UltraShort Semiconductor ProShares Fund (SSG), which is up 96.0% in 2008. It is worth noting that Intel (INTC - Get Report) accounts for nearly 40% of this ETF's weight. With shares of Intel retreating 39.7% in 2008, this fund was a big winner.

Intel wasn't the only chipmaker that experienced adversity in 2008 though. It was tough sledding for most of the industry. "Many semiconductor companies had over 50% of their sales coming from emerging market countries," said Eric Aanes, president of Titus Wealth Management. "The economic slowdown in the emerging markets enhanced the sell-off in these stocks."

Aanes believes that chip stocks are positioning for a recovery. "Many stocks in the sector are trading at 11 to 15 earnings, which is historically low," he said. "Tight cost controls will preserve profitability for top-tier companies. This sector will be one of the early sectors to lead us out of a defensive mode."

A Flight to Safety, Treasuries

In terms of non-inverse, non-leveraged ETFs, the top two performers in 2008 have been the Vanguard Extended Duration Treasury ETF (EDV) and the iShares Barclays 20+ Year Treasury Bond Fund (TLT). Year to date, these ETFs have experienced respective returns of 55.1% and 33.8%.

Kevin Mahn, portfolio manager for the SmartGrowth Mutual Funds notes that these ETFs have benefited from investors becoming more risk averse. Mahn's SmartGrowth Lipper Optimal Conservative Index Fund (LPCAX), which is a fund of ETFs, is down only 7.5% this year. "At the end of Q3, TLT was only up 2.0%," he said. "The bulk of its gains came in November. I think this trend can be attributed to a flight to quality."

Mahn isn't sold on the notion that that these two ETFs will be able to maintain such strong momentum over the course of 2009. "Money that is on the sidelines in these funds right now will likely be moving into equities in 2009," he said.
2 of 2

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
EDV $125.32 1.49%
SSG $43.56 2.03%
TLT $129.43 1.26%
USO $10.74 -2.81%
SDK $0.00 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs