Top ETFs Bet on Real Estate in August

The best-performing ETFs in August bet on the recovering real estate market.
Publish date: Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.



) -- The best-performing exchange traded funds in August targeted the recovering

real estate

market and banks that have become property owners through foreclosure.

Topping the list are two triple-leveraged funds. The

Direxion Daily Real Estate Bull 3x Shares

(DRN) - Get Report

jumped 41% in its first full calendar month of trading. The more established

Direxion Daily Financial Bull 3X Shares

(FAS) - Get Report

gained 38%.

The four largest holders of repossessed real estate as of June 30 were

JPMorgan Chase

(JPM) - Get Report

with $4.9 billion in property,

Wells Fargo

(WFC) - Get Report

with $2.5 billion,

Bank of America

(BAC) - Get Report

with $1.8 billion, and


(C) - Get Report

with $1.7 billion. These ETFs made leveraged bets on these banks and other financial stocks.

The best-performing, non-leveraged fund in August was the

iPath Dow Jones-UBS Sugar Subindex Total Return ETN

(SGG) - Get Report

, which returned a sweet 31% in one month. This exchange traded note tracks an index of futures contracts tied to sugar prices called World Sugar No. 11, which trades on the New York Board of Trade's ICE Futures U.S. Softs exchange. One contract for 112,000 pounds of raw cane sugar is now worth $27,316.80, up 31% in a month and a huge jump from the $13,227 it was worth at year-end.

-- Reported by Kevin Baker in Jupiter, Fla


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Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.