Two Newly Rated ETF Ranked at Buy

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

Just one fund earned an initial 'Hold' level ratings of C+ to C- by finishing in the middle of the pack. Finally, four 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 two newly rated ETFs ranked at 'Buy':

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2. iShares S&P Target Date 2050 Index

iShares S&P Target Date 2050 Index ( TZY) seeks investment results that correspond generally to the price and yield performance of the S&P Target Date 2050 Index. The underlying index seeks to represent asset allocations for investors with a target retirement horizon on or around 2050.

Expense Ratio: 0.11%

One Year Total Return: 19.9%

Rated "B" by TheStreet Ratings:

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1. Market Vectors Mtge REIT Income ETF

Market Vectors Mtge REIT Income ETF ( MORT) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Global Mortgage REITs Index. The fund normally invests at least 80% of its total assets in securities that comprise the funds benchmark index.

The fund turned in a stellar first year return earning a Reward grade of "A+". Lower volatility garnered a good Risk grade of "B+" validating the underlying strategy.

Expense Ratio: 0.40%

One Year Total Return: 32.3%

Rated "A+" by TheStreet Ratings:

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Here is one newly rated ETF ranked at 'Hold':

1. iShares S&P Target Date 2045 Index

iShares S&P Target Date 2045 Index ( TZW) seeks investment result that correspond generally to the price and yield performance of the S&P Target Date 2045 Index. The underlying index seeks to represent asset allocation for investors with a target retirement horizon on or around 2045.

Expense Ratio: 0.11%

One Year Total Return: 14.1%

Rated "C+" by TheStreet Ratings:

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

4. iPath S&P 500 Dynamic VIX ETN

iPath S&P 500 Dynamic VIX ETN ( XVZ) seeks to provide investors with cost-effective exposure to the S&P 500® Dynamic VIX Futures¿ Total Return Index which dynamically allocates between the S&P 500® VIX Short-Term Futures¿ Index Excess Return and the S&P 500® VIX Mid-Term Futures¿ Index Excess Return based upon the steepness of the implied volatility curve. The index seeks to react positively to overall increases in market volatility while lowering roll costs tied to futures contracts.

Expense Ratio: 2.14%

One Year Total Return: -8.1%

Rated "D-" by TheStreet Ratings:

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3. iShares MSCI Emerging Markets Small Cap Index Fund

iShares MSCI Emerging Markets Small Cap Index Fund ( EEMS) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Small Cap Index. The fund seeks to measure small capitalization equity market performance in the global emerging markets.

Expense Ratio: 0.69%

One Year Total Return: -2.6%

Rated "D" by TheStreet Ratings:

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2. EGShares India Consumer ETF

EGShares India Consumer ETF ( INCO) seeks investment results that correspond to the price and yield performance of the INDXX India Consumer Index. Under normal circumstances, the fund will invest at least 80% of its net assets in Indian consumer companies included in the underlying index.

Expense Ratio: 0.89%

One Year Total Return: -3.0%

Rated "D+" by TheStreet Ratings:

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1. EGShares Low Volatility Emerging Markets Dividend ETF

EGShares Low Volatility Emerging Markets Dividend ETF ( HILO) seeks investment results that correspond to the price and yield performance of the INDXX Emerging Markets High Income Low Beta Index. Under normal circumstances, the fund will invests at least 80 percent of its net assets in emerging markets companies included in the underlying index.

Expense Ratio: 0.85%

One Year Total Return: 4.3%

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 Palm Beach Gardens, 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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