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

Don Dion's Weekly ETF Blog Wrap

NEW YORK ( TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next. This week, among his blogs featured below, he wrote about real estate and housing ETFs, bundled products and the U.S. Natural Gas fund.

Real Estate and Housing ETFs Near the Top

Posted 8/10/2009, 1:35 p.m. EDT

Real estate and housing ETFs are in the most damaged sector of the American economy and running neck and neck with consumer sectors for the title of worst sector going forward, yet they nonetheless enjoyed a spectacular bounce. A broader short-selling rebound in some of the most beaten-down stocks ( AIG (AIG - Get Report) doubled last week) contributed to a frenzy in the sector.

iShares Cohen & Steers Realty Majors (ICF) climbed 42% in the past month, the best of the broad REIT ETFs. Vanguard REIT (VNQ) advanced 40%, while iShares Dow Jones U.S. Real Estate (IYR) gained 38% and SPDR DJ REIT (RWR) added 39%. iShares Dow Jones U.S. Home Construction (ITB) and SPDR S&P Homebuilders (XHB) enjoyed returns north of 40%.

Improved credit conditions benefited REITs this spring and summer, but there are still clouds ahead with more than $150 billion in debt that needs to be rolled in the next four years. Any setback in the economy could trigger another wave of selling. Housing has shown signs of improvement recently and credit conditions are also favorable as long as rates stay low.

These ETFs all show improved long-term momentum, with the housing ETFs showing more strength than the REIT ETFs. Still, none have momentum that exceeds that of the broader market.

In the short run, real estate and housing ETFs are at or near the top. I've seen these outbursts of momentum come and go among the weaker sectors and rarely do funds stage a continuous rally from the bottom to the top -- even in bull markets.

My firm recently added IYR in two of our momentum-based portfolios due to technical strength, but this position may be reversed quickly.

1 of 4

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
ICF $101.88 0.27%
UNG $6.75 2.12%
RWR $94.06 0.14%
VNQ $83.23 0.16%
XHB $33.46 -1.59%


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