10 Best Performing ETFs

NEW YORK ( TheStreet Ratings) -- TheStreet.com Ratings issues monthly grades on 1072 exchange-traded funds, or ETFs. Even with recent market volatility, 201 of these funds have been consistent winners month after month. For the past two years of risk-adjusted return performance results, all of these funds have maintained average to excellent grades.

As our fund grades are based on a comparative ranking system, these funds have matched pace with or outperformed all other exchange-traded fund alternatives we track. At no point have they dropped down into the 'Sell' range of D+ or worse in the last two years.

Of the consistent winners, here are the 10 best performing ETFs that are currently ranked at 'Buy':

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10. PowerShares QQQ

PowerShares QQQ ( QQQ) provides investors with the opportunity to purchase units of beneficial interest in the Trust representing proportionate undivided interest in securities, which consist of substantially all of the securities, in substantially the same weighting as the Nasdaq-100 Index. The investment objective of the Trust is to provide investment results that generally correspond to the price and yield performance of the component securities of the index.

Expense Ratio: 0.20%

One Year Total Return: 12.3%

Rated "B-" by TheStreet Ratings:

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9. iShares FTSE NAREIT Residential Idx

iShares FTSE NAREIT Residential Idx ( REZ) seeks investment results before fees and expenses that correspond to the price and yield performance of the FTSE NAREIT Residential Index. The Index measures the performance of the residential real estate sector of the U.S. Equity market. All the securities included in the Index are issued by REITs that invest in residential real estate.

Expense Ratio: 0.48%

One Year Total Return: 12.3%

Rated "B+" by TheStreet Ratings:

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8. Guggenheim S&P 500 Eq WgCon Dsc ETF

Guggenheim S&P 500 Eq WgCon Dsc ETF ( RCD) replicates as closely as possible, before expenses, the performance of the S&P Equal Weight Consumer Discretionary Index. The fund uses a passive management strategy to track the performance of the underlying index which consists of common stocks. The fund may use a replication strategy for index tracking.

Expense Ratio: 0.50%

One Year Total Return: 12.7%

Rated "A" by TheStreet Ratings:

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7. Consumer Discretionary Sel Sec SPDR

Consumer Discretionary Sel Sec SPDR ( XLY) invests in common stocks of industries such as automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media, and retailing.

Expense Ratio: 0.19%

One Year Total Return: 12.8%

Rated "B+" by TheStreet Ratings:

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6. First Trust US IPO Index Fund

First Trust US IPO Index Fund ( FPX) has an investment objective to replicate as closely as possible, before fees and expenses, the price and yield of the IPOX 100 U.S. Index. This underlying index tracks the 100 largest market capitalization stocks of the IPOX Global Composite Index through their first 1000 trading days since their initial public offering. The holdings are weighted using a rules-based valuation model capping holdings at no more than 10% of assets.

The largest holdings include 10.0% in Visa Inc ( V), 9.4% in Philip Morris International Inc ( PM), and 7.2% in General Motors Company ( GM).

Expense Ratio: 0.60%

One Year Total Return: 14.0%

Rated "B" by TheStreet Ratings:

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5. iShares MSCI Thailand Inv Market

iShares MSCI Thailand Inv Market ( THD) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the publicly traded securities of the MSCI Thailand Investable Market Index. The underlying index is a free-float adjusted, market capitalization index designed to measure broad based equity market performance in Thailand.

Expense Ratio: 0.59%

One Year Total Return: 19.1%

Rated "B+" by TheStreet Ratings:

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4. SPDR S&P Retail ETF

SPDR S&P Retail ETF ( XRT) has an investment objective to replicate the performance of an index derived from the retail segment of a U.S. total market composite index. The fund uses a passive management strategy designed to track the total return performance of the S&P Retail Select Industry Index.

Expense Ratio: 0.36%

One Year Total Return: 22.4%

Rated "A" by TheStreet Ratings:

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3. PowerShares Dynamic Retail

PowerShares Dynamic Retail ( PMR) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Retail Intellidex SM Index before the fees and expenses of the fund. The fund invests at least 80% of its total assets in common stocks of retail companies. The underlying index is comprised of stocks of 30 U.S. retailers. These are companies that are principally engaged in operating general merchandise stores such as department stores discount stores, warehouse clubs, superstores, and specialty stores including apparel, electronics, accessories, and footwear, home improvement, and home furnishings.

Expense Ratio: 0.63%

One Year Total Return: 24.7%

Rated "B" by TheStreet Ratings:

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2. iShares DJ US Pharmaceuticals

iShares DJ US Pharmaceuticals ( IHE) seeks investment results that correspond generally to the price and yield performance before fees and expenses of the Dow Jones U.S. Select Pharmaceuticals Index. The index includes pharmaceutical companies such as manufacturers of prescription drugs, over-the-counter drugs, and vaccines. The index excludes producers of vitamins.

Expense Ratio: 0.47%

One Year Total Return: 26.4%

Rated "B-" by TheStreet Ratings:

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1. PowerShares Dynamic Pharmaceuticals

PowerShares Dynamic Pharmaceuticals ( PJP) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Pharmaceuticals Intellidex Index before the fees and expenses of the fund. The fund invests at least 80% of its total assets in common stocks of pharmaceutical companies. The underlying index is comprised of stocks of 30 U.S. pharmaceuticals companies.

Expense Ratio: 0.63%

One Year Total Return: 31.4%

Rated "B-" 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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