China's real estate industry continues to ramp higher, powering developers and ETFs heavily exposed to the industry to strong gains. Aside from TAO, the iShares MSCI Hong Kong Index Fund ( EWH) was another big mover this week. China remains an exciting region of the market to watch, especially for investors looking for exposure to the emerging markets. Investing in the nation, however, has been tricky recently as inflation fears crop up. Looking ahead, investors looking for China exposure should turn to the Guggenheim China Small Cap Index ETF ( HAO). By looking to the small caps, investors can access the strength of the nation's domestic population.
iShares S&P North American Technology-Multimedia Networking Fund (IGN) 5.3%
Although they stumbled into the close of the week, the U.S. marketplace witnessed a nice run during the opening week of 2011. Leading the way higher was the IGN which continues to benefit as tech remains a popular corner of the market. Over the past week, IGN constituents such as Motorola ( MOT) and Research in Motion ( RIMM)(RIM) were in the news as droves of investors and consumers flocked to the Consumer Electronics Show to see what new developments and products they could expect to see in the coming future. Motorola was also in the news this week as the company formerly announced its separation into the two firms: Motorola Solutions (MSI) and Motorola Mobility (MMI). These two new entities can be found underlying IGN, representing 5% and 4% of the fund respectively.
Airlines remain a risky region of the market, but this week they were flying high. United Continental ( UAL), FAA's largest component, performed particularly well this week, bolstered by news that the airline had reached a tentative labor agreement with the International Association of Machinists and Aerospace Workers. FAA is a noticeably topheavy fund, dedicating over 40% of its index to its three top holdings. Investors looking for more stable long-term exposure to the airlines would be better off opting for the iShares Dow Jones Transportation Average Index Fund ( IYT).
Although they managed to gain back some ground on Friday, the smallest members of the gold mining community still ended the week with heavy losses. Other ETFs aimed at the precious metals industry struggled as well. ETFS Physical Palladium Shares ( PALL) and iShares Silver Trust ( SLV) were two notable decliners.