Dion's Friday ETF Winners and Losers

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.


iPath S&P 500 VIX Short Term Futures ETN ( VXX) 6.2%

Although a number of positive earnings reports from companies such as Alcoa ( AA) and Intel ( INTC) aided bullish sentiment over the first part of this week, the bears have the upper hand heading into the weekend.

While I'm sure there will be turmoil in store for us in the future, I am still confident that we are in the midst of a global economic recovery. Surviving in this environment requires a sharp eye and a strong stomach. One of the best ways to weather the storm is to hold onto strong, stable dividend paying ETFs like iShares Dividend Select Index Fund ( DVY) . DVY is ahead of the market today, down about 2%.

CurrencyShares Japanese Yen Trust ( FXY) 0.8%

Today's down market is driving ETF investors into all of the traditional defensive plays. FXY is leading the currency ETFs, while long-term bonds funds such as iShares Barclays 20+ Year Treasury Bond Fund ( TLT) head higher as well. UltraShort 20+Year Treasury Bond ETF ( TBT), which is designed to provide investors with double the inverse exposure to long term Treasuries, is performing as expected, down 1.4%.


SPDR KBW Bank ETF ( KBE) -5.1%

Goldman Sachs ( GS) has reached a settlement with the SEC and JPMorgan ( JPM), Bank of America ( BAC) and Citigroup ( C) all reported estimate-beating earnings numbers on Thursday and Friday. However, with the passage of Washington's sweeping financial reform bill, investors are pouring out of the financial sector, driving funds like KBE and iShares Dow Jones U.S. Financial Services Index Fund ( IYG) lower.

ETFS Physical Palladium Shares ( PALL) -3.6%

No precious metal is safe in today's broad sell-off. While industry linked palladium is leading the downward trajectory, gold linked funds such as Market Vectors Junior Gold Miners ETF ( GDXJ) is also sinking.

I continue to advise investors to pick up some exposure to gold to protect against market and political turmoil.

PowerShares Dynamic Media Portfolio ( PBS) -4.1%

The media ETF is being hit hard today amidst the broad market sell-off. Google ( GOOG), the fund's third largest holding, is among the biggest losers and continues to face heat after a less than stellar earnings report. In Friday afternoon trading, the Internet search giant was down over 6%.

Looking forward, I think Google still holds promise. With the Internet becoming even more essential to our everyday lives, this company will continue to be a leader. Additionally, the growing strength of Android in the smartphone industry has become something to watch.

iShares MSCI South Korea Index Fund ( EWY) -3.6%

After a hard rally that spanned nearly all of July, EWY appears to be taking a breather, dipping back below its 200-day moving average.

EWY has recently gained attention after the Bank of Korea upgraded the nation's economic growth forecast for 2010.

All prices as of 2:15 PM EST

-- Written by Don Dion in Williamstown, Mass.
At the time of publication, Dion Money Management was long iShares Dividend Select Index Fund.

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.