Three newly rated funds that invest in bonds and currencies have earned top grades from TheStreet.com Ratings, reflecting strong performance after a year of trading.
We started covering 12 exchange-traded funds and two fixed-income mutual funds last month after collecting a year's worth of risk and return data. Four of these funds received initial grades of B-plus or better, which equal "buy" recommendations. Seven earned D and E grades, indications to "sell."
Among the funds with "excellent" ratings, two invest in bonds. The Market Vectors Short Municipal Index ETF (SMB), which tracks the Barclays Capital AMT-Free Short Continuous Municipal index, received an A-plus grade. This former Lehman Brothers (LEHMQ) index follows investment-grade municipal bonds with maturities of one to six years.
The Claymore U.S. Capital Markets Micro-Term Fixed Income ETF (ULQ) also earned an A-plus. The fund follows the Capital Markets Liquidity index, which includes investment-grade bonds with maturities of less than a year, commercial paper and other short-term securities.The Barclays Asian and Gulf Currency Revaluation Exchange Traded Note (PGD) starts out with an A grade. This fund is designed to rise as currencies in China, Hong Kong, Singapore, Saudi Arabia and the United Arab Emirates strengthen against the U.S. dollar. Investors can also sell this fund short as a bullish bet on the dollar. Two RiverSource funds reached the three-year mark required to be eligible for mutual fund ratings. Both the RiverSource Floating Rate Fund (RFRAX) and the RiverSource Emerging Markets Bond Fund (REBAX) earned initial grades of E-plus, or "sell." Both funds have lost more than 20% in the past year. TheStreet.com Ratings uses a computerized model to evaluate funds' performance and risk data. The funds below started trading a year ago. For detailed rating information, click here.