Dion's Friday ETF Winners and Losers

Although Bank of America reported strong earnings today, financial ETFs are taking some big hits due to the SEC's decision to charge Goldman Sachs with fraud.
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NEW YORK (TheStreet) - Welcome to Don Dion's Daily ETF Winners and Losers. Be sure to stop by each day to get a feel of who's winning and who's losing when it comes to ETFs.

Losers

Financial Select SPDR

(XLF) - Get Report

-3.7%

Although

Bank of America

(BAC) - Get Report

reported strong earnings today, financial ETFs are taking some big hits due to the SEC's decision to charge

Goldman Sachs

(GS) - Get Report

with fraud. This news sent Goldman down more than 13% by midday and took the rest of the financial sector with it; most large banks are down 4% or more.

Berkshire Hathaway

, the fourth largest holding, was doing better, down less than 2%.

Goldman accounted for 5.2% of XLF as of yesterday's close. The most exposed ETF is

iShares Dow Jones U.S. Broker Dealers

(IAI) - Get Report

, which had 11% in Goldman Sachs at the start of trading today. IAI is down 4.0% in midday trading.

Credit insurers bucking the trend today include

AIG

(AIG) - Get Report

, up 1.0%,

MBIA

(MBI) - Get Report

up 7.4%, and

Ambac

(ABK)

down a mild 0.3%. These firms may have a case against Goldman since the fraud charges surround CDOs.

Market Vectors Gold Miners ETF

(GDX) - Get Report

-3.4%

Broad financial weakness and a stronger U.S. dollar are pulling down the price of gold, nearly $30 at midday, and the miners are exceeding its losses.

GDX's top three holdings,

Barrick Gold

(ABX)

,

Goldcorp

(GG)

and

Newmont Mining

(NEML)

are all down about 3% or more. Together, these companies account for nearly 40% of the fund's total index.

iShares MSCI Thailand Investable Market Index Fund

(THD) - Get Report

-5.8%

Political unrest continues to pound the iShares Thailand fund, but overall volatility today is contributing to the slide. From a technical perspective the fund may see some support however, as it quickly approaches its 50-day moving average.

Even if this level proves a nice point of strength for the fund I would advise investors to stick to the sidelines. As protesters and government security officials continue to butt heads in the days ahead, uncertainty will remain.

iShares FTSE/Xinhua China 25 Index Fund

(FXI) - Get Report

-4.0%

In China, officials are taking steps to cool down the overheating property market. In response to these actions China ETFs of all types are taking hits today.

The nation's state council is ordering banks to increase their minimum mortgage rates as well as down payment requirements. Down payments on first homes will rise from 20% to 30%; on second homes it will rise from 40% to 50% and the minimum interest rate for second homes will rise from 80% of the benchmark rate to 110%.

Winners

CurrencyShares Japanese Yen

(FXY) - Get Report

+1.0%

The Japanese yen moved opposite to the stock market today. The S&P 500-down-Japanese-yen-up correlation was strong in 2008 and then faded as the market recovered in 2009 and into 2010. This advance in the yen comes after a group of lawmakers from the ruling party in Japan said they want to see the yen devalued by 30%, but that possible policy shift is long term and right now investors are focused on the very short term volatility caused by the Goldman Sachs news.

iPath S&P VIX Short-Term Futures ETN

(VXX) - Get Report

+7.7%

A day such as today is what the investors who have been piling into VXX expected, and today is their payoff. Despite today's pop, however, shares are still below where they stood at the start of April, showing that timing is important when playing this ETN. Volume is on pace to break the February 5 high of 15.5 million shares, with over 12.5 million traded by midday.

Prices as of 12:30 PM

Don Dion is president and founder of

Dion Money Management

, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.