5 ETFs to Watch This Week

NEW YORK (TheStreet) -- Investors will be looking for emerging markets, Internet and silver ETFs to continue their run this week.

First Trust Chindia Index Fund (FNI)

With growing populations and impressive growth pictures, China and India have been attractive investment destinations for those seeking exposure to nations which will be movers and shakers within the economic and political realm in the coming years.

Investors can tap into these countries separately using funds such as iShares FTSE/Xinhua China 25 Index Fund ( FXI) and WisdomTree India Earnings Fund ( EPI).

FNI takes a unique approach to playing these two growth engines, combining the most liquid Chinese and Indian firms under one roof.

Recently, FNI has performed well, moving up in both our short- and long- term momentum rankings. Investors looking for a simple way to gain exposure to some of the most popular emerging markets may want to put FNI on their radar.

For more on ETFs to play China and India be sure to check out my article from last week.


Master Limited Partnerships remain an area of interest for investors looking for both exposure to the natural gas industry and a source of consistent income. In the past investors have had to look to exchange-traded notes such as JPMorgan Alerian MLP Index ETN to satisfy their appetite for this asset class.

Kast week, ALPS unveiled the first product designed to track MLPs structured as an ETF.

As I explained in my Real Money blog last week , AMLP is treated differently come tax time. This, however, has not dissuaded investors from jumping on board.

In the short time it has been available, it has already seen its average trading volume jump to nearly 500,000. It will be interesting to see if this fund's popularity persists into this week.

iShares Silver Trust ( SLV)

Silver prices continued to tear higher last week as investors sought out precious metals to protect against the market's volatility. On Thursday and Friday, the physically backed iShares fund locked in post-crash highs.

Meanwhile, silver miners have also seen some strong performance. The relatively new Global X Silver Miners ETF ( SIL) has managed to score new all time highs

Silver's trajectory in recent weeks has been impressive, but it may be getting a little overbought at this point. Investors may want to exercise caution before jumping in.

First Trust Dow Jones Internet Index Fund ( FDN)

Last week, FDN saw impressive gains and is currently just shy of testing previous 2010 highs. Boasting popular names including Amazon ( AMZN), Google ( GOOG), Netflix ( NFLX) and Salesforce.com ( CRM), FDN is the fund to watch for investors who are confident that we will become increasingly reliant on technology.

So far, this bet has paid off. Year to date, FDN has handedly beaten the performance of the broader PowerShares QQQ ( QQQQ). I expect this trend to continue heading into the foreseeable future.

iShares Barclays 20+ Year Treasury Bond Fund ( TLT)

After rallying hard in August as investors fled into defensive positions, long- term government treasuries at last settled down, causing TLT to lose a good portion of the gains. On the other side of the coin, ProShares UltraShort 20+ Year Treasury Bond ETF ( TBT), managed to recover some of its losses incurred during this same period.

The bulls have managed to score some impressive gains recently. However, if investors show jitters heading into the start of this shortened week of trading, TLT may have a chance to rebound higher.

-- Written by Don Dion in Williamstown, Mass.

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At the time of publication, Dion Money Management was long First Trust Dow Jones Internet Index Fund and PowerShares QQQ.

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.

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