This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Best-Performing ETFs Invest in Real Estate

Stocks in this article: RTLCBLDOW

The best-performing exchange-traded funds signal a bottoming in two key areas of the U.S. economy: real estate and commodities. The ETFs also point to a bottom-fishing expedition in value stocks.

After excluding the 20 ETFs that use leverage, 10 of the 25 best-performing funds in April invest in real estate.

Pending sales of existing U.S. homes rose in April for the second month in a row, showing buyers are locking in prices that are cheaper than at any time in a generation. Add to that a gain in construction spending bolstered by commercial and government stimulus projects, and the foundation is laid for an upturn.

Of the real estate funds, none performed better than the iShares FTSE NAREIT Retail Capped Index Fund (RTL). The fund returned 51% as four of its holdings more than doubled in value, including 236% from CBL & Associates (CBL), 180% from Macerich (MAC), 118% from Pennsylvania Real Estate Investment Trust (PEI) and 106% in Cedar Shopping Centers (CDR).

Another big winner in April, the PowerShares FTSE RAFI Basic Materials Sector Portfolio (PRFM) jumped nearly 38%, the top performer of the six commodity funds making the list. Holdings contributing to the ascent include a 113% jump from Ashland (ASH), 92% from Domtar (UFS) and 90% from Dow Chemical (DOW).

The other five commodity funds making the list focus on coal, timber and steel. All are positioned to be early beneficiaries of a renewal in demand during an economic recovery.

Commodity funds experienced a freefall, collapsing as much as 62%, since my September article on Five Commodity ETFs to Avoid. After bouncing along the bottom for a few months, commodity funds present an attractive bet on an economic recovery and offer an inflation hedge.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs