The Best-Performing ETFs of 2008

A more traditional health/biotech fund, the SPDR S&P Pharmaceuticals ETF(XPH Quote) is invested in cash-rich "big-pharma" firms that some industry analysts say are gearing up to acquire companies, such as those that kept BBH above water during the year.

XPH's biggest holdings include Bristol-Myers Squibb(BMY Quote), Abbott Labs(ABT Quote), Johnson & Johnson(JNJ Quote) and Pfizer (PFE Quote).

Finally, the nearby table also includes the top three funds in a popular area of ETF investing: currency and commodity funds. Even though the U.S. dollar regained lost ground vis-à-vis the euro and U.K. pound, investors who speculated on the strength of the Swiss franc and the Japanese yen by buying the currency ETFs in the table achieved profits in 2008.

2008's TOP-PERFORMING ETFs NAME, TICKER & TheStreet.com RATINGS GRADE 1-MO. TOTAL RET'N (%) 3-MO. TOTAL RET'N (%) CAL. 2008 TOTAL RET'N (%) MARKET CAP ($MIL.) TOTAL EXPENSE RATIO (%) LEVERAGED & INVERSE ETFs ProShares Ultra Short Semiconductor (SSG) A- -21.57 23.59 107.69 67.7 0.95 ProShares Ultra Short Technology (REW) C -9.95 30.66 94.45 87.6 0.95 ProShares Ult Sht Rus Mid Cp Growth (SDK) A+ -15.46 27.32 94.06 33.3 0.95 FIXED-INCOME ETFs Vanguard Extended Duration Treasury (EDV) U 20.95 45.82 54.51 6.6 0.14 iShares Lehman 20+Yr Treasury Bond (TLT) A+ 13.64 27.51 33.92 1,834.0 0.15 SPDR Lehman Long Term Treasury ETF (TLO) A- 8.95 18.53 23.91 12.1 0.14 NON-LEVERAGED EQUITY ETFs HOLDRS Biotech (BBH) B- 7.57 -4.21 10.34 1,443.8 0.00 SPDR S&P Biotech ETF (XBI) D+ 9.27 -10.82 -8.61 226.0 0.35 SPDR S&P Pharmaceuticals ETF (XPH) C+ 8.56 -3.05 -8.99 8.4 0.35 CURRENCY & COMMODITY ETFs iPath JPY/USD Exchange Rate ETN (JYN) B+ 5.22 16.62 22.91 12.69 0.40 CurrencyShares Japanese Yen Trust (FXY) A- 5.53 17.26 22.87 751.81 0.40 CurrencyShares Swiss Franc Trust (FXF) B+ 14.04 5.67 7.63 445.47 0.40 TheStreet.com Ratings & Bloomberg (Data as of 12/31/2008) For an explanation of our ratings, click here.