15 Newly Rated ETFs Underperform

NEW YORK ( TheStreet Ratings) -- TheStreet.com Ratings initiated coverage of 15 exchange-traded funds, or ETFs, that accrued a sufficient track record of risk and performance data by the end of February 2012. All 15 newly rated exchange-traded funds start out at 'Sell' by underperforming previously rated ETFs. Only six of the 15 fund turned in a positive, initial one year return.

None of the newly rated fund that opened for business February 2011 received a 'Buy' rating of B-, or better. Also, none of the newly rated ETFs started in the 'Hold' range of C+ down to C-.

Here are the 15 newly rated ETFs ranked at 'Sell':

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15. Teucrium Natural Gas Fund

Teucrium Natural Gas Fund ( NAGS) seeks to have its net asset value reflect the daily changes in percentage terms of its benchmark. The fund's benchmark is the nearest to spot month March, April, October and November Henry Hub natural gas futures contracts traded on the NYMEX, weighted 25% equally in each contract month.

Expense Ratio: 1.50%

One Year Total Return: -46.9%

Rated "E+" by TheStreet Ratings:

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14. FactorShares 2X: S&P500 Bull/TBond Bear

FactorShares 2X: S&P500 Bull/TBond Bear ( FSE) seeks to track the spread between the US Equity and long dated US Treasury market segment by establishing long and short leverage position. The Funs seeks to invest +200% of its value to the Equity Index Futures Contract and -200% to the value of its Treasury Index Futures Contract.

Expense Ratio: 0.75%

One Year Total Return: -45.1%

Rated "E" by TheStreet Ratings:

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13. FactorShares 2X: Oil Bull/S&P500 Bear

FactorShares 2X: Oil Bull/S&P500 Bear ( FOL) seeks to track the spread, or the difference in daily returns between the oil and US equity market primarily by establishing long and short leveraged positions. The fund invests +200% to oil index futures contracts on light sweet crude and -200% to E-mini equity index futures contracts.

Expense Ratio: 0.75%

One Year Total Return: -27.9%

Rated "E+" by TheStreet Ratings:

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12. ProShares UltraShort TIPS

ProShares UltraShort TIPS ( TPS) seeks daily investment results that correspond to 200% of the inverse daily performance of the underlying index. The fund invests in derivatives that ProShares advisors believes should have similar daily performance characteristics as twice the inverse of the daily return of the Barclays Capital US Treasury Inflation Protected Securities (TIPS) Index.

Expense Ratio: 0.95%

One Year Total Return: -24.3%

Rated "D" by TheStreet Ratings:

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11. WisdomTree Managed Futures Strategy Fund

WisdomTree Managed Futures Strategy Fund ( WDTI) seeks to provide investors with positive total returns in rising or falling markets. The fund invests substantially all of its assets in a combination of commodity and currency linked investments and fixed income securities designed to correspond to the performance of the Benchmark.

Expense Ratio: 0.95%

One Year Total Return: -13.9%

Rated "D" by TheStreet Ratings:

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10. FactorShares 2X: S&P500 Bull/USD Bear

FactorShares 2X: S&P500 Bull/USD Bear ( FSU) seeks to track the spread, or the daily difference in daily returns, between the US Equity and currency market segment by establishing long and short leveraged positions. The fund seeks a 200% long position in the E-mini S&P500 equity index futures contracts and a 200% short position in currency index futures contacts on the US Dollar Index.

Expense Ratio: 0.75%

One Year Total Return: -11.2%

Rated "D-" by TheStreet Ratings:

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9. Teucrium WTI Crude Oil Fund

Teucrium WTI Crude Oil Fund ( CRUD) seeks to have the daily changes in percentage terms of the Shares NAV reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for futures contracts for WTI crude oil, also known as Texas Light Sweet Crude Oil traded on the NYMEX.

Expense Ratio: 1.54%

One Year Total Return: -10.4%

Rated "D-" by TheStreet Ratings:

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8. First Trust NASDAQ CEA Smartphone Index Fund

First Trust NASDAQ CEA Smartphone Index Fund ( FONE) seeks investment results that correspond generally to the price and yield of NASDAQ OMX CEA Smartphone Index. The fund will normally invest at least 90% of its net assets in common stocks and depositary receipts included in the index covering the smartphone segment of the telecom and technology sectors.

Expense Ratio: 0.70%

One Year Total Return: -8.73%

Rated "D" by TheStreet Ratings:

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7. FactorShares 2X: TBond Bull/S&P500 Bear

FactorShares 2X: TBond Bull/S&P500 Bear ( FSA) seeks to track the spread, or the difference in daily return between the long dated US Treasury and US equity market segment by establishing long and short leverage position. The fund seeks to invest +200% of its value to Treasury index futures contracts and -200% to the equity index futures contracts.

Expense Ratio: 0.75%

One Year Total Return: -2.6%

Rated "E+" by TheStreet Ratings:

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6. Global X FTSE Andean 40 ETF

Global X FTSE Andean 40 ETF ( AND) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Andean 30 Index. The index is designed to measure performance of the 30 largest and most liquid companies in Chile, Colombia, and Peru.

Expense Ratio: 0.72%

One Year Total Return: 1.53%

Rated "D" by TheStreet Ratings:

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5. FactorShares Gold Bull S&P 500 Bear

FactorShares Gold Bull S&P 500 Bear ( FSG) seeks to track the spread, or the difference in daily return, between the gold and US equity market primarily by establishing a short and long leveraged position. The fund seeks to invest plus 200% of the value of its fund equity in gold index futures contracts and invest negative 200% in equity index futures contracts.

Expense Ratio: 0.75%

One Year Total Return: 7.2%

Rated "E+" by TheStreet Ratings:

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4. SPDR Barclays Capital Emerging Markets Local Bond ETF

SPDR Barclays Capital Emerging Markets Local Bond ETF ( EBND) seeks investment objective is to provide investment results that correspond generally to the price and yield performance of the Barclays Capital EM Local Currency Government Diversified Index that tracks the fixed-rate local currency sovereign debt of emerging market countries.

Expense Ratio: 0.50%

One Year Total Return: 7.6%

Rated "D+" by TheStreet Ratings:

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3. Global X FTSE ASEAN 40 ETF

Global X FTSE ASEAN 40 ETF ( ASEA) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/ASEAN 40 Index. The index tracks the performance of the 40 largest and most liquid companies in the five ASEAN regions: Indonesia, Philippines, Singapore, Malaysia and Thailand.

Expense Ratio: 0.65%

One Year Total Return: 7.7%

Rated "D" by TheStreet Ratings:

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2. SPDR S&P Emerging Markets Dividend ETF

SPDR S&P Emerging Markets Dividend ETF ( EDIV) seeks to provide investment results that correspond generally to the price and yield performance of an index that tracks dividend paying securities of publicly-traded companies in emerging markets. The fund invests at least 80%, of its total assets in the securities comprising the S&P Emerging Markets Dividend Opportunities Index.

Expense Ratio: 0.59%

One Year Total Return: 10.4%

Rated "D+" by TheStreet Ratings:

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1. RBS Gold Trendpilot ETN

RBS Gold Trendpilot ETN ( TBAR) seeks to provide exposure to the price of gold bullion in positive trending markets and exposure to the 3-month Treasury bill rate in negative trending markets using an objective and transparent methodology.

Expense Ratio: 1.00%

One Year Total Return: 15.9%

Rated "D-" by TheStreet Ratings:

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Research Methodology

TheStreet.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. While there is no guarantee of future performance, these Investment Ratings provide a solid framework for making informed, timely investment decisions. The funds listed below have reached their one year anniversary.

Funds rated A or B are considered "Buy" rated based on a track record of higher than average risk-adjusted performance. Funds at the C level are rated as "Hold," while underperformers at the D and E levels our model ranks as "Sell."

-- Reported by Kevin Baker in Jupiter, Fla.

Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering equity and mutual fund ratings. 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.

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