4 Newly Rated ETFs for Your Portfolio

NEW YORK ( TheStreet Ratings) -- TheStreet.com Ratings initiated coverage of 34 exchange-traded funds, or ETFs, that accrued a sufficient track record of risk and performance data by the end of March 2012. Of the 34 newly rated exchange-traded funds, only four start out at 'Buy' with grades of B- or better on superior first year results.

13 funds get initial 'Hold' level ratings of C+ to C- by finishing in the middle of the pack. Lastly, 17 ETFs begin at 'Sell' with grades of D+ or worse after underperforming alternative ETF investments in the past year on a risk-adjusted return basis.

Here are the four newly rated ETFs ranked at 'Buy':

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4. Focus Morningstar Health Care Index ETF

Focus Morningstar Health Care Index ETF ( FHC) seeks to provide investment result that correspond, before fees and expenses, generally to the price and yield performance of the underlying Morningstar Health Care Index which consists of companies involved in biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term care facilities, and medical equipment.

Expense Ratio: 0.19%

One Year Total Return: 14.69%

Rated "B-" by TheStreet Ratings:

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3. PowerShares DB 3x German Bund Futures ETN

PowerShares DB 3x German Bund Futures ETN ( BUNT) seeks to offer investors three times leveraged exposure to the monthly performance of the German Bond Futures Index plus the monthly T-Bill index return, reduced by the investor fee.

While this fund turned in a spectacular first year performance, it was also much more volatile than the other top rated funds. Tripe leverage funds like this warrant extra caution as they tend to decline as fast as they rise.

Expense Ratio: 0.95%

One Year Total Return: 55.0%

Rated "B-" by TheStreet Ratings:

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2. Focus Morningstar Consumer Cyclical Index ETF

Focus Morningstar Consumer Cyclical Index ETF ( FCL) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the underlying Morningstar Consumer Cyclical Index.

Expense Ratio: 0.19%

One Year Total Return: 14.6%

Rated "B+" by TheStreet Ratings:

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1. Focus Morningstar Technology Index ETF

Focus Morningstar Technology Index ETF ( FTQ) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the underlying Morningstar Technology Index, which consists of companies engaged in the design, development, and support of computer operating systems and applications.

Expense Ratio: 0.19%

One Year Total Return: 15.9%

Rated "A" by TheStreet Ratings:

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Here are the 13 newly rated ETFs ranked at 'Hold':

13. PowerShares Senior Loan

PowerShares Senior Loan ( BKLN) seeks investment results that correspond generally to the price and yield of an index called the S&P/LSTA U.S. Leveraged Loan 100 Index. The fund will normally invest at least 80 percent of its total assets in bank loans.

Expense Ratio: 0.65%

One Year Total Return: 2.9%

Rated "C-" by TheStreet Ratings:

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12. Focus Morningstar Utilities Id ETF

Focus Morningstar Utilities Id ETF ( FUI) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the underlying index consist of companies that are electric, gas, and water utilities that meet specific criteria developed by Morningstar, Inc.

Expense Ratio: 0.19%

One Year Total Return: 10.7%

Rated "C-" by TheStreet Ratings:

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11. Focus Morningstar Industrials Index ETF

Focus Morningstar Industrials Index ETF ( FIL) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the underlying Morningstar Industrials Index which consists of companies that manufacture machinery, hand-held tools and industrial products.

Expense Ratio: 0.19%

One Year Total Return: 0.12%

Rated "C-" by TheStreet Ratings:

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10. Focus Morningstar Communication Services Index ETF

Focus Morningstar Communication Services Index ETF ( FCQ) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Communication Services Index. The fund will invest at least 90% of its assets in securities of the underlying index.

Expense Ratio: 0.75%

One Year Total Return: -11.2%

Rated "D-" by TheStreet Ratings:

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9. Focus Morningstar Small Cap Index ETF

Focus Morningstar Small Cap Index ETF ( FOS) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Small Cap Index. The fund will invest at least 90% of its assets in securities of the underlying index.

Expense Ratio: 0.12%

One Year Total Return: 0.3%

Rated "C" by TheStreet Ratings:

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8. Focus Morningstar Mid Cap Index ETF

Focus Morningstar Mid Cap Index ETF ( FMM) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Mid Cap Index. The fund will invest at least 90% of its assets in securities of the Underlying Index.

Expense Ratio: 0.12%

One Year Total Return: 2.81%

Rated "C" by TheStreet Ratings:

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7. PowerShares DB 3x Itn Trs B Fut ETN

PowerShares DB 3x Itn Trs B Fut ETN ( FSA) The fund seeks to offer investors three times leveraged exposure to the monthly performance of the BTP Futures Index plus the monthly T-Bill index return, reduced by the investor fee.

Expense Ratio: 0.95%

One Year Total Return: 10.7%

Rated "C+" by TheStreet Ratings:

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6. Focus Morningstar Finl Svc Index ETF

Focus Morningstar Finl Svc Index ETF ( FFL) seeks to provide investment results consists of companies that provide financial services which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies that meet specific criteria developed by Morningstar, Inc.

Expense Ratio: 0.19%

One Year Total Return: -1.9%

Rated "C+" by TheStreet Ratings:

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5. Focus Morningstar US Market Index ETF

Focus Morningstar US Market Index ETF ( FMU) seeks to investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar US Market Index. The fund will invest at least 90% of its assets in securities of the underlying index.

Expense Ratio: 0.05%

One Year Total Return: 6.6%

Rated "C+" by TheStreet Ratings:

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4. Focus Morningstar Real Estate Index ETF

Focus Morningstar Real Estate Index ETF ( FRL) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the underlying index consists of mortgage companies, property management companies and REITs that meet specific criteria developed by Morningstar, Inc.

Expense Ratio: 0.12%

One Year Total Return: 9.7%

Rated "C+" by TheStreet Ratings:

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3. Focus Morningstar Large Cap Index ETF

Focus Morningstar Large Cap Index ETF ( FLG) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the Morningstar Large Cap Index. The fund will invest at least 90% of its assets in securities of the underlying index.

Expense Ratio: 0.05%

One Year Total Return: 8.5%

Rated "C+" by TheStreet Ratings:

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2. Focus Morningstar Consumer Defensive Index ETF

Focus Morningstar Consumer Defensive Index ETF ( FCD) seeks to provide investment results that correspond, before fees and expenses, generally to the price and yield performance of the underlying index consists of companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco.

Expense Ratio: 0.19%

One Year Total Return: 15.5%

Rated "C+" by TheStreet Ratings:

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1. iShares High Dividend Equity

iShares High Dividend Equity ( HDV) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Dividend Yield Focus Index. The fund generally invests at least 90 percent of its assets in the securities and in depositary receipts representing securities of the underlying index.

Expense Ratio: 0.40%

One Year Total Return: 15.7%

Rated "C+" 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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