The continuation of the previous week's rally left many of the same funds as top performers, with the addition of biotech.
First Trust NYSE Arca Biotechnology
PowerShares Dynamic Biotech & Genome
Human Genome Sciences
stunned Wall Street with a successful clinical trial of its lupus drug; shares more than quadrupled. The two biotech ETFs listed above have exposure to the stock: PBE held 3.43 percent of assets in the stock and FBT had 5%, as it holds 20 stocks equally weighted. Due to the pop in HGSI, the allocations in PBE and FBT have climbed to 12.68% and 17.23%, respectively.
Market Vectors Solar
China announced a major subsidy program for solar projects, and
said it expects to turn a profit in the second quarter. That news lifted shares on Friday, and a bad earnings report from
MEMC Electronic Materials
means that STP will assume the top spot in KWT.
delivered the biggest kick when it reported results that nearly doubled analyst estimates, sending shares up 30%.
Market Vectors Russia
Higher oil prices provided a boost to RSX, but telecom company
, which makes up 5% of the ETF, contributed with a 15% gain. RSX lost short-term momentum during the mid-June to mid-July broader market decline, but long-term momentum is strong. It is up more than 100% in the past six months and also since the March lows, a little over three months ago.
Unlike several emerging-market ETFs that are hitting, or are close to hitting, new post-crash highs (and some 52-week highs in the case of Chinese ETFs), RSX remains about 15% below its June highs.
iShares Dow Jones U.S. Home Construction
SPDR S&P Homebuilers
Homebuilder NVR beat estimates and the market responded optimistically to housing data out this week. ITB bested XHB for the week because it holds a greater share of assets in homebuilders, vs. suppliers and retailers to the housing industry.
PowerShares DB U.S. Dollar Bullish Fund
CurrencyShares Japanese Yen
The list of underperforming funds included a long list of short ETFs, plus many bond ETFs, which is typical of any week with rising stocks. The two most important are UUP and FXY because they acted as a safe haven during market selloffs.
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.