Dion's Friday ETF Winners and Losers

Spain, Italy and other European single nation ETFs are pocketing nice gains after news that the European rescue plan passed successfully through the German Parliament.
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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.

Winners

iShares MSCI Spain Index Fund (EWP) - Get Report 5.0%

Spain, Italy and other European single nation ETFs are pocketing nice gains on Friday after news that the European rescue plan passed successfully through the upper and lower houses of the German Parliament.

Although EWP has faced headwinds throughout this Greece ordeal, the fund has shown signs of bottoming throughout May. Although I still don't recommend playing it, EWP will certainly be one of the more interesting ETFs to watch next week as the issue continues to progress.

ETFS Physical Palladium Shares (PALL) - Get Report 3.6%

After dipping nearly 20% this week, the palladium ETF has powered back. Today's move highlights the volatile nature of this white metal and due to its wild swings, PALL is ideal for short term traders. Investors looking for a buy-and-hold precious metal to play market strength should opt instead for

ETFS Physical Platinum Shares

(PPLT) - Get Report

.

Claymore/MAC Global Solar Energy Index ETF (TAN) - Get Report 3.5%

The battered solar energy industry is seeing some welcome gains on Friday as broad market fears are alleviated, but investors should be cautious toward TAN and other alternative energy ETFs in the near future. As nations around the world focus heavily on their sovereign debt in an effort to avoid a Greece-like crisis, alternative energy subsidies will likely remain on the backburner.

iPath Dow Jones-UBS Copper Total Return Subindex ETN (JJC) - Get Report 3.4%

A forecast jump in demand from China is causing copper prices to see their largest gains in three months and powering JJC to some impressive gains.

Playing a single metal ETN can add a lot of unwanted volatility to your portfolio. Investors looking to play strength in copper should instead check out

PowerShares DB Base Metals Fund

(DBB) - Get Report

. This fund allocated its assets equally across three metals: copper, aluminum and zinc. Today DBB is up 3.0%.

Losers

iPath S&P 500 VIX Short-Term Futures ETN (VXX) - Get Report -2.0%

After Thursday's stumble, the markets appeared to find a bit of support, relieving some investor fears. Reflecting this rebound in the markets, investors powered the fear-based VIX lower, driving VXX down.

In the recent times of market turmoil VXX has exploded higher, erasing its 2010 losses. This fund still should be avoided, however. There is a good chance that when the skies clear, it will give up those gains as quickly as it earned them.

PowerShares High Yield Equity Dividend Achievers Portfolio (PEY) - Get Report -1.6%

PEY earned a spot among the ETF industry's biggest losers during early Friday trading. The cause of the fund's drop can be traced back to the small premium generated during yesterday's session. When this premium was wiped away on Friday, PEY's dip was magnified.

Premiums appear when a fund fails to create enough shares to adequately meet demand. In order to avoid the damage these inefficiencies can cause to a portfolio, investors should choose funds which boast strong liquidity. Those looking for a liquid dividend fund should look to the

iShares Dow Jones Select Dividend Index Fund

(DVY) - Get Report

(DVY).

Telecom HOLDRs (TTH) -0.5%

The most top heavy of the telecom ETFs is taking a heavy hit today. Market leaders

AT&T

(T) - Get Report

and

Verizon

(VZ) - Get Report

together make up more than 70% of TTH's total portfolio.

On Friday, the FCC announced that it wanted to see increased competition in the telecommunication industry in the near future. Such a move would be good news for smaller players including

Sprint Nextel

(S) - Get Report

and

Deutsche Telekom

's

(DT) - Get Report

T-Mobile. Investors looking for a less top heavy play on the telecom industry should opt for

iShares Dow Jones U.S. Telecommunications Sector Index Fund

(IYZ) - Get Report

.

All prices as of 2:16 PM EST

At the time of publication, Dion Money Management owned PPLT.

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.