This Day On The Street
Continue to site
ADVERTISEMENT
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 Worst-Performing ETFs of 2008

It's a quick journey from top to bottom.

The worst-performing exchange-traded funds of 2008 were those that could do no wrong in previous years: Those that invest in financial services, commodities and real estate.

Bottom of the barrel: The absolute worst-performing ETF of 2008 was the ProShares Ultra Financial Fund (UYG). With top holdings that include JPMorgan (JPM - Get Report), Wells Fargo (WFC - Get Report), Bank of America (BAC - Get Report) and Citigroup (C - Get Report), the fund is down 86.9% this year.

One analyst said that train wreck had been a long time in the making. "The excesses of loose credit from the '90s are still being felt today, in part, because of so-called recovery, which began in '03, was fueled by massive borrowing from other net creditor nations," said Stephen Oakes, a senior equity analyst for Oxbury Publishing. "The finance industry cut corners and invested in crafty schemes, such as subprime lending, to produce returns for stakeholders that were unsustainable in the long-run."

This macroeconomic trend has now trickled down to individuals. "To stop the bleeding, lending has dried up to such an extreme that even creditworthy applicants find it difficult to locate sources of much needed capital," Oakes said. "And we all know it takes newly created loans and additional monetary tools for businesses to support and expand an economy."

Oakes said 2009 will continue to be a struggle for this ETF. "Technically, financials are stuck in a downtrend channel that has been difficult to break," he said. "Unless upper resistance is broken, there will be more pain to come."

Real estate on the ropes: A real estate industry that faced unprecedented turmoil in 2008 led the ProShares Ultra Real Estate Fund (URE) lower -- much lower. This ETF turned in a minus 82.6% showing. Its largest holdings include REITs such as Simon Property Group (SPG), Boston Properties (BXP) and AvalonBay Communities (AVB).

1 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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
UYG $146.13 1.10%
PBW $5.90 0.85%
URE $109.64 1.30%
BAC $15.56 0.00%
C $53.10 0.06%

Markets

DOW 18,063.83 +28.90 0.16%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs