Dion's Weekly ETF Winners and Losers
Winners
ETFS Physical Platinum Shares (PALL) - Get Report 13.1%
Palladium prices shot higher this week, riding on the broad market strength as well as a string of optimistic auto sales numbers.
In the absence of a pure play automobile ETF I have often urged car bulls to use PALL and
ETFS Physical Platinum Shares
(PPLT) - Get Report
as proxies. Due to their extensive use in the production of catalytic converters, these funds typically follow the industry's actions.
Palladium and platinum represent two constituents of the new
ETFS Physical White Metal Trust
(WITE)
, a new product aimed at tracking a physical stockpile of silver, platinum and palladium. The fund, which launched on Friday, got off to a strong start, trading hands over 160,000 times.
Market Vectors Vietnam ETF (VNM) - Get Report 13.9%
Investors continue to pay close attention to Asia as China's government takes steps to curb inflation. While this issue has fueled jitters in the past, these failed to subdue the region's markets this week as ETFs such as VNM and
iShares MSCI Thailand Investable Market Index Fund
(THD) - Get Report
saw impressive gains.
Even South Korea, which faced pressure last week in light of political tensions with the northern half of the peninsula, powered higher, indicated by strong performance from
the iShares MSCI South Korea Index Fund
(EWY) - Get Report
.
iShares Dow Jones U.S. Home Construction Index Fund (ITB) - Get Report 9.0%
They struggled throughout the latter half of November but residential homebuilders such as
Lennar
(LEN) - Get Report
,
KB Homes
(KBH) - Get Report
and
Toll Brothers
(TOL) - Get Report
started off December on a strong note, leading ETFs such as ITB and
SPDR S&P Homebuilders ETF
(XHB) - Get Report
to strong gains.
Despite this week's strength, I still have reservations about the residential housing market. Investors looking for a more certain play on real estate should look to REIT-focused funds such as
iShares Cohen & Steers Realty Majors Index Fund
(ICF) - Get Report
.
Losers
iPath S&P 500 VIX Short Term Futures ETN (VXX) - Get Report -9.8%
Although fears of debt contagion in Europe caused the markets to end November on a down note, the bulls came out in droves during the first week of December, powering the broad markets to comfortable gains. In response to the resounding strength, the VIX-based ETNs took a shot, leading VXX to retest previous all-time lows.
iPath Dow Jones UBS Natural Gas Total Return Subindex ETN (GAZ) - Get Report -6.0%
Natural gas prices got pressured lower this week, leading GAZ and fellow futures-based funds,
United States Natural Gas Fund
(UNG) - Get Report
to noticeable gains. Although it has struggled to cope with a massive disconnection over the past few weeks, it appears as though the gap between GAZ and its underlying assets is dissipating. The fund's premium which once stood at over 26% has been reduced to 6%.
iShares Barclays 20+ Year Treasury Bond Fund (TLT) - Get Report -1.9%
Protective plays such as long term U.S. treasuries fell out of favor this week as a strong start to December drove investors into riskier asset classes.
As we approach the close of 2010, TLT will be interesting to watch. If the markets can hold on to this week's gains and head higher, the fund will certainly be in for a rocky ride.
At the time of publication, Dion Money Management THD and ICF.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.