TSC 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. ProShares Short Oil & Gas ( DDG) is an exchange traded fund that received one of TheStreet.com Ratings' highest marks in an initial ranking. Forty-one ETFs that accrued a sufficient track record of risk and performance data by the end of June got ratings for the first time. The ProShares energy fund, which rose 24% in the 12 months through June, attempts to track the inverse of the daily performance of the Dow Jones U.S. Energy Sector Index, whose members have fallen over the past year. At this time last year, the spot price of Light Louisiana Sweet Crude Oil was peaking at around $150 a barrel, stoking the bullish sentiment of oil-patch stocks. Since then, SandRidge Energy ( SD) has declined 83%, Halliburton ( HAL) has more than halved, Chevron ( CVX) has dropped 23% and Exxon Mobil ( XOM) has decreased 14%. University of Calgary professor Philip K. Verleger Jr., who runs PKVerleger LLC, said last week that oil could drop to $20 a barrel if growing stockpiles aren't dealt with soon. PKVerleger is an economic consultant on energy and commodity markets. Still, crude oil rose for a fourth day today on speculation demand will increase as global economies recover. Oil has gained 44% this year. Two other newly rated ETFs are iShares FTSE China Hong Kong Listed Index Fund ( FCHI) and iPath DJ UBS Sugar Total Return Sub-Index ETN ( SGG).
Research MethodologyTheStreet.com Ratings condenses the available fund performance and risk data into a single composite opinion of each fund's risk-adjusted performance. This allows the unbiased identification of those funds that have historically done well and those that have underperformed the market. The ratings provide a solid framework for making informed investment decisions.
Funds rated A or B are considered "buy" based on a track record of higher-than-average risk-adjusted performance. Funds at the C level are rated as "hold," while underperformers at D and E are "sell." For more information, check out an explanation of our ratings.