Here's a look at the best and worst performing ETFs of the past week.
Market Vectors Steel
Claymore/Delta Global Shipping
Market Vectors Coal
First Trust ISE-Revere Natural Gas
The global risk trade came back in force this week after commodity-related ETFs had sold off between mid-June and mid-July. Energy and industrial commodity prices bounced off their lows, and strong GDP reports from Singapore and China gave confidence to investors. These four funds are still down between 10% and 15% from their June 11 levels, however.
Claymore/Robb Report Global Luxury
and other banks reporting knockout quarters, big bonuses may be on the way, and that's good news for luxury retailers. The fund has been unpopular though, and actually had zero volume on Friday.
I picked it
as one of the five dumbest ETFs, and it has no chance to attract attention until people begin wasting money again, something that doesn't happen until well into an economic upswing.
SPDR S&P Homebuilders
iShares Dow Jones U.S. Home Construction
Both these funds gained on Friday, while the broader real estate ETFs declined. This goes to
that recent housing news paints a brighter picture for homebuilders than for ETFs holding commercial real estate, although both face a difficult road ahead.
iShares Dow Jones U.S. Real Estate
gained 7.6% on the week.
iShares Barclays 20+ Year Treasury
iShares Barclays 10-20 Year Treasury
SPDR Long Term Treasury
PowerShares 1-30 Laddered Treasury
It's risk up and safety down. Investors headed for the equity markets, and bonds had to offer higher yields to attract them. Expect more weeks such as this one if the market can rally another leg up from these levels.
WisdomTree Japan Small Cap
iShares Japan Small Cap
CurrencyShares Japanese Yen
There were few equity funds down last week, given that the
increased 7% on the week. Of the small number of losers, only Japanese small-caps and the yen were similar. Most of the loss came courtesy of the yen, which lost 2.1% as measured by FXY. The Nikkei managed only a 1.2% gain for the week, which was erased by the fall in the yen. The U.S. Dollar Index lost ground as well, but its 1% loss was dwarfed by the rally in stocks.
Don Dion is the 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.
Dion is also 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.