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Resilient ETFs

Trend: Only 21 of 643 ETFs show positive returns for 1 week, 4 weeks, 13 weeks, and 52 weeks (as of 12/31/2007).

We analyzed the performance of the 643 ETFs tracked by Morningstar from the MSN Money Exchange Traded Funds (ETFs) Performance Tracker. We identified the ETFs without a loss in the 1 week, 4 week, 13 week, and 52 week periods.

ETFs with positive returns for 1 week, 4 weeks, 13 weeks, and 52 weeks (through 12/31/2007)

ETFs GT 0 For Weeks 1 thru 52


Name	Ticker	Category	1-Wk %	4-Wks %	13-Wks %	52-Wks %	1 - 52 Week Resiliency*
iPath MSCI India Index ETN	INP	Growth	1.52	0.47	34.06	85.81	121.9
MACROshares Oil Up Tradeable Shares	UCR	Specialty - Natural Resources	1.25	24.59	20.81	44.39	91.0
iPath S&P GSCI Crude Oil Tot Ret Idx ETN	OIL	Specialty - Natural Resources	2.84	8.85	21.09	47.37	80.1
United States Oil	USO	Specialty - Natural Resources	2.45	8.37	21.12	46.82	78.8
iShares MSCI Malaysia Index	EWM	Pacific Stock	1.03	5.26	10.66	44.59	61.5
Rydex S&P Equal Weight Energy	RYE	Specialty - Natural Resources	0.04	10	10.48	41.02	61.5
PowerShares FTSE RAFI Energy	PRFE	Specialty - Natural Resources	4.27	13.72	5.31	35.01	58.3
PowerShares DB Commodity Idx Trking Fund	DBC	Specialty - Natural Resources	1.35	6.72	15.07	31.6	54.7
streetTRACKS Gold Shares	GLD	Specialty - Precious Metals	2.89	6.65	12.18	31.1	52.8
iShares COMEX Gold Trust	IAU	Specialty - Precious Metals	2.75	6.4	11.98	30.36	51.5
iShares S&P GSCI Commodity-Indexed Trust	GSG	Specialty - Natural Resources	1.03	5.97	11.81	31.62	50.4
iPath S&P GSCI Total Return Index ETN	GSP	Specialty - Natural Resources	1.49	5.87	11.42	31.61	50.4
iShares S&P Global Energy	IXC	Specialty - Natural Resources	0.75	5.34	4.81	29.8	40.7
iShares MSCI Germany Index	EWG	Europe Stock	0.51	1	4.01	33.7	39.2
iShares Silver Trust	SLV	Specialty - Precious Metals	1.62	5.73	7.63	14.25	29.2
iPath Dow Jones-AIG Commodity Idx TR ETN	DJP	Specialty - Natural Resources	1.07	4.39	4.56	14.9	24.9
Market Vectors Gold Miners ETF	GDX	Specialty - Precious Metals	3.43	0.56	2.8	16.81	23.6
CurrencyShares Euro Trust	FXE	Worldwide Bond	1.43	0.03	3.22	14.54	19.2
B2B Internet HOLDRs	BHH	Specialty - Technology	2.56	0.38	8.11	7.62	18.7
CurrencyShares Swiss Franc Trust	FXF	Worldwide Bond	2.14	0.08	3.06	9.14	14.4
Short S&P500 ProShares	SH	Growth	1.41	1.01	4.59	1.72	8.7

*1 - 52 Week Resiliency is the sum of the percentage gains of 1 week, 4 weeks, 13 weeks, and 52 weeks.

Disclosure: We may own any of the EFTs above at any time.

December 31, 2007 in ETFs, Investing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: B2B Internet HOLDRs, BHH, CurrencyShares Euro Trust, CurrencyShares Swiss Franc Trust, DBC, DJP, ETFs, EWG, EWM, FXE, FXF, GDX, GLD, GSG, GSP, IAU, INP, iPath Dow Jones-AIG Commodity Idx TR ETN, iPath MSCI India Index ETN, iPath S&P GSCI Crude Oil Tot Ret Idx ETN, iPath S&P GSCI Total Return Index ETN, iShares COMEX Gold Trust, iShares MSCI Germany Index, iShares MSCI Malaysia Index, iShares S&P Global Energy, iShares S&P GSCI Commodity-Indexed Trust, iShares Silver Trust, IXC, MACROshares Oil Up Tradeable Shares, Market Vectors Gold Miners ETF, Morningstar from the MSN Money Exchange Traded Fun, OIL, PowerShares DB Commodity Idx Trking Fund, PowerShares FTSE RAFI Energy, PRFE, Rydex S&P Equal Weight Energy, RYE, SH, Short S&P500 ProShares, SLV, streetTRACKS Gold Shares, UCR, United States Oil, USO

Best Performing ETFs for the Past Week

Trend: Rydex 2x S&P MidCap 400 (RMM) led the one week performance (+6.9%, +10.3% for 4 weeks, N/A for 13 weeks). iPath MSCI India Index ETN (INP) and Market Vectors Gold Miners ETF (GDX) were the second and third best performers.

The 20 ETFs with the best 1 week performance through 12/28/2007 tracked by Morningstar are highlighted below.

Link: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name

Ticker

Best Performing ETFs for the Past Week

Trend: Ultra Real Estate ProShares (URE) led the one week performance (+14.3%, +3.2% for 4 weeks, -21% for 13 weeks), bouncing back from an autumn decline.

The 20 ETFs with the best 1 week performance through 12/24/2007 tracked by Morningstar are highlighted below.

Link: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name	Ticker	Category	Holdings	Morningstar	Last Price*	1-Wk	4-Wks	13-Wks	YTD	52-Wks	3-Yrs	5-Yrs
Ultra Real Estate ProShares	URE	Specialty - Real Estate	holdings		$37.61	14.33	3.19	-21.00	N/A	N/A	N/A	N/A
Rydex 2x Russell 2000	RRY	Growth			$74.41	14.30	9.96	N/A	N/A	N/A	N/A	N/A
Ultra Russell2000 ProShares	UWM	Equity-Income	holdings		$64.99	13.17	7.97	-6.65	N/A	N/A	N/A	N/A
Ultra Russell2000 Growth ProShares	UKK	Growth	holdings		$69.20	13.03	10.65	N/A	N/A	N/A	N/A	N/A
iShares FTSE/Xinhua China 25 Index	FXI	Diversified Emerging Markets	holdings		$179.50	12.64	5.42	4.72	62.96	74.99	49.86	N/A
PowerShares WilderHill Clean Energy	PBW	Specialty - Natural Resources	holdings		$28.10	12.18	24.94	25.50	60.85	61.49	N/A	N/A
Ultra Russell2000 Value ProShares	UVT	Growth	holdings		$50.47	11.15	4.82	-11.61	N/A	N/A	N/A	N/A
PowerShares Dynamic Asia Pacific	PUA	Pacific Stock	holdings		$29.24	11.02	5.11	0.47	N/A	N/A	N/A	N/A
Market Vectors Global Agribusiness ETF	MOO	Specialty - Unaligned	holdings		$57.15	10.97	22.80	28.25	N/A	N/A	N/A	N/A
SPDR S&P China	GXC	Pacific Stock	holdings		$93.25	10.96	5.25	2.59	N/A	N/A	N/A	N/A
SPDR S&P BRIC 40	BIK	Growth	holdings		$33.63	10.92	9.05	14.39	N/A	N/A	N/A	N/A
iShares MSCI Brazil Index	EWZ	Foreign Stock	holdings		$82.42	10.71	8.03	18.11	78.56	84.38	58.93	61.03
Claymore/BNY BRIC	EEB	Foreign Stock	holdings		$54.64	10.61	9.61	18.14	70.43	80.27	N/A	N/A
First Trust NASDAQ Clean Edge US Liquid	QCLN	Specialty - Technology	holdings		$31.43	10.47	22.01	26.48	N/A	N/A	N/A	N/A
First Trust ISE Chindia	FNI	Foreign Stock	holdings		$28.35	9.80	11.18	11.97	N/A	N/A	N/A	N/A
PowerShares Gldn Dragon Halter USX China	PGJ	Diversified Emerging Markets	holdings		$34.68	9.47	11.49	8.34	65.32	74.82	35.10	N/A
iShares MSCI Hong Kong Index	EWH	Pacific Stock	holdings		$22.25	9.44	8.70	8.86	41.45	45.36	25.41	26.86
iPath DJ AIG Copper TR Sub-Idx ETN	JJC	Specialty - Precious Metals			$44.62	9.34	4.08	N/A	N/A	N/A	N/A	N/A
BLDRS Emerging Markets 50 ADR Index	ADRE	Diversified Emerging Markets	holdings		$56.20	9.06	6.91	9.64	46.49	51.27	42.32	36.91
iShares S&P Latin America 40 Index	ILF	Foreign Stock	holdings		$255.90	8.97	8.76	11.95	52.65	57.75	50.11	48.59

Disclosure: We may own any EFT above at any time.

Please verify the performance of any ETF before investing.

December 26, 2007 in ETFs, Investing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: ADRE, BIK, EEB, EWH, EWZ, FNI, FXI, GXC, ILF, JJC, MOO, PBW, PGJ, PUA, QCLN, RRY, UKK, Ultra Real Estate ProShares, URE, UVT, UWM

Best Performing Rydex ETFs for the Past Week

Trend: The Rydex Inverse 2x Russell 2000 (RRZ) led the one week performance (+5.7%, +4.4% for 4 weeks), reflecting the downdraft in small-cap sector.

The 20 Rydex ETFs with the best 1 week performance through 12/19/2007 tracked by Morningstar are highlighted below.

Link: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name	Ticker	Category	Holdings	Morningstar	Last Price*	1-Wk	4-Wks	13-Wks	YTD	52-Wks	3-Yrs	5-Yrs
Rydex Inverse 2x Russell 2000	RRZ	Growth			$80.52	5.69	4.38	N/A	N/A	N/A	N/A	N/A
Rydex Inverse 2x S&P 500	RSW	Growth			$79.35	4.17	-3.13	N/A	N/A	N/A	N/A	N/A
Rydex Inverse 2x S&P MidCap 400	RMS	Growth			$79.94	4.07	9.03	N/A	N/A	N/A	N/A	N/A
CurrencyShares Canadian Dollar Trust	FXC	Worldwide Bond			$100.36	1.18	-1.44	2.21	20.87	19.37	N/A	N/A
CurrencyShares Mexican Peso Trust	FXM	Worldwide Bond			$92.45	0.66	2.01	3.05	6.35	5.75	N/A	N/A
Rydex 2x S&P MidCap 400	RMM	Growth			$69.09	0.58	-5.77	N/A	N/A	N/A	N/A	N/A
Rydex S&P Midcap 400 Pure Value	RFV	Growth	holdings		$32.85	-0.48	0.00	-6.98	-3.62	-3.06	N/A	N/A
Rydex S&P Smallcap 600 Pure Value	RZV	Growth	holdings		$33.53	-0.71	0.24	-15.47	-18.81	-17.27	N/A	N/A
Rydex S&P Equal Weight Energy	RYE	Specialty - Natural Resources	holdings		$67.30	-0.83	6.00	4.12	34.29	30.03	N/A	N/A
CurrencyShares Japanese Yen Trust	FXY	Income			$88.46	-1.10	-3.11	2.35	N/A	N/A	N/A	N/A
Rydex S&P Smallcap 600 Pure Growth	RZG	Growth	holdings		$41.33	-1.27	1.08	-6.60	0.82	3.06	N/A	N/A
Rydex S&P Equal Weight Health Care	RYH	Specialty - Health	holdings		$56.12	-1.46	0.13	-0.97	9.98	10.11	N/A	N/A
Rydex S&P 500 Pure Growth	RPG	Growth	holdings		$37.59	-1.57	2.25	-2.46	5.42	4.32	N/A	N/A
Rydex S&P Equal Weight Consumer Staples	RHS	Specialty - Unaligned	holdings		$52.38	-1.67	1.61	1.28	7.72	8.55	N/A	N/A
Rydex S&P Equal Weight	RSP	Growth	holdings		$47.17	-1.89	-0.88	-5.98	0.41	0.01	8.18	N/A
CurrencyShares Swiss Franc Trust	FXF	Worldwide Bond			$86.39	-1.95	-3.53	2.73	6.89	6.37	N/A	N/A
CurrencyShares Euro Trust	FXE	Worldwide Bond			$143.70	-2.24	-1.77	3.87	12.71	12.57	N/A	N/A
CurrencyShares British Pound Sterling Tr	FXB	Worldwide Bond			$198.79	-2.29	-2.12	1.07	7.34	6.53	N/A	N/A
Rydex Russell Top 50	XLG	Growth	holdings		$110.26	-2.32	1.73	-4.51	3.46	3.18	N/A	N/A
Rydex S&P Midcap 400 Pure Growth	RFG	Growth	holdings		$56.37	-2.37	1.48	-1.88	9.35	8.96	N/A	N/A

Disclosure: We may own any EFT above at any time.

Please verify the performance of any ETF before investing.

December 20, 2007 in ETFs, Investing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: FXB, FXC, FXE, FXF, FXM, FXY, Morningstar, MSN Money Exchange Traded Funds (ETFs) Performance, RFG, RFV, RHS, RMM, RMS, RPG, RRZ, RSP, RSW, Rydex Inverse 2x Russell 2000, RYE, RYH, RZG, RZV, XLG

Two Bear Views

Predictions: Two big picture views suggest we'll see a recession and a bear market in 2008.

John Markman at MSN Money describes two market experts (Paul Desmond and Jim Rogers) with good track records who say that a significant bear market is imminent. Excerpts below.

If these predictions are accurate, the ProShares and Rydex inverse EFTs provide vehicles for investors to protect portfolios in a bear market.

Link: Stock market 'winter' is moving in - MSN Money.

Paul Desmond, the head honcho of the venerable demand-analysis firm Lowry's Reports, ... observes that bear markets have occurred over the past two centuries every 52 months or so, roughly every four and a half years. Although they seem like rare events, they're actually as regular a part of the market cycle as winter is part of the seasonal cycle. Past market lows in just the past half-century include 1957, 1962, 1970, 1974, 1978, 1982, 1987, 1990, 1994, 1998 and 2002.

Desmond says one sign indicating stocks have peaked was a gauge showing the supply of stocks for sale surpassed demand in midsummer. Because such behavior took 10 months longer than usual to emerge, he says, it will likely lead to a longer-than-normal bear phase. If precedence is meaningful, then he believes we can look for a decline that persists at least through 2008.

Desmond generally recommends moving portfolios to cash and selected shorts at the start of a bear phase, since virtually all groups of stocks tend to move down together at first, and waiting to see which groups of stocks emerge as countertrend heroes. In the early 1970s, the heroes were energy stocks, while in 2000-02 they were value and small-cap financial stocks. He guesses that energy, health care and utilities may buck the trend this time, but it's too early to say with certainty.

One thing he says he is certain of, however, is that although the market appears soft now, we ain't seen nothing yet. So far, he says, the market has drifted down primarily due to a lack of buying. It will really collapse later on, Desmond says, when investors lose hope and begin to engage in high-volume selling.

Jim Rogers, who is equally negative on stocks, was one of the earliest proponents of investing in China and in metals, long before their surge of the past few years. He achieved notoriety three years ago by warning that shares of Fannie Mae would get crushed once the market realized that it was "unbelievably over-leveraged" and would sink under the weight of its out-of-control derivatives positions.

Continue reading "Two Bear Views" »

December 20, 2007 in ETFs, Investing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: bear market, inverse EFTs, Jim Rogers, John Markman, MSN Money, Paul Desmond, ProShares, Rydex

EFTs for a Recession

Trend: As a recession appears more likely, savvy investors will be purchasing ETFs that should do well in a recession.

ETF Expert Gary Gordon describes some ETFs if the economy falls into recession. Excerpts below.

Link: ETF Expert: Recession or Fear of a Recession Spooking Investors?

The way I score it, there's a 70% chance of a recession/30% chance we'll avoid it.

A recession is not synonymous with a "bear" market for stocks. Typically, it's the fear of the recession that sends people running for cover; it's the uncertainty of how companies can profit or pay their debts that spells trouble.

And while recession-induced bears do occur, profitable investing can be found by recession-proofing your portfolio. I've given the example in a previous post of the SINdex gaining 25% in the last recession. So FocusShares SINdex Fund (PUF) may be a consideration for some people.

I've spent most of the year describing the relative safety of Global Consumer Staples (KXI). Toilet paper and toothpaste stocks do well regardless of economic conditions, particularly worldwide.

Granted, my fundamental assertion will always be, "Never suffer a big loss." So you should always protect your investments with stop-losses and have a plan to move some assets to cash. You also need to diversify with foreign fixed income.

The take-home is to understand that... pardon the cliche... things turn on a dime. In essence, when the Federal Reserve is continuing to look for ways to stimulate the economy through liquidity injections and interest rate cuts, and when foreign governments are looking to buy cheap American companies, and when the Federal goverment looks for "bailouts," things may indeed turn favorable.

December 19, 2007 in ETFs, Investing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: ETF Expert, FocusShares SINdex Fund, Gary Gordon, Global Consumer Staples, KXI, PUF, recession ETFs

Best Performing ETFs for the Past Week

Trend: The top nine ETFs are Ultrashort ProShares ETFs; 17 of the 20 are inverse, short ETFs. Last week was not good for the bulls.

The 20 ETFs with the best 1 week performance through 12/14/2007 tracked by Morningstar are highlighted below.

Link: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name

Ticker

China and the Arabian Peninsula as Market Stabilizers

Trend: Global forces appear to be stabilizing the financial uncertainty in United States.

Dr. George Friedman of Stratfor (timely, accurate global intelligence, analysis, and forecasting) describes why the subprime problem and high energy prices have not devastated the United States economy. I find it troubling that the US is dependent on these trading partners.

Link: Friedman Writes Back » China and the Arabian Peninsula as Market Stabilizers.

Dubai and the rest of the Arabian Peninsula, as well as China, are holding huge dollar reserves, and the last thing they want to do is sell those dollars in sufficient quantity to drive the dollar’s price even lower. Nor do they want to see a financial crisis in the U.S. markets. Both the Chinese and the Arabs have far too much to lose to want such an outcome. So, in an infinite number of open market transactions, as well as occasionally public investments, they are moving to support the U.S. markets, albeit for their own reasons.

It is the only explanation for what we are seeing. The markets should be selling off like crazy, given the financial problems. They are not. They keep bouncing back, no matter how hard they are driven down. That money is not coming from the financial institutions and hedge funds that got ripped on mortgages. But it is coming from somewhere. We think that somewhere is the land of $90-per-barrel crude and really cheap toys.

Many people will see this as a tilt in global power. When others must invest in the United States, however, they are not the ones with the power; the United States is. To us, it looks far more like the Chinese and Arabs are trapped in a financial system that leaves them few options but to recycle their dollars into the United States. They wind up holding dollars — or currencies linked to dollars — and then can speculate by leaving, or they can play it safe by staying. In our view, these two sources of cash are the reason global markets are stable.

Energy prices might fall (indeed, all commodities are inherently cyclic, and oil is no exception), and the amount of free cash flow in the Arabian Peninsula might drop, but there still will be surplus dollars in China as long as it is an export-based economy. Put another way, the international system is producing aggregate return on capital distributed in peculiar ways. Given the size of the U.S. economy and the dynamics of the dollar, much of that money will flow back into the United States. The United States can have its financial crisis. Global forces appear to be stabilizing it.

The Chinese and the Arabs are not in the U.S. markets because they like the United States. They don’t. They are locked in. Regardless of the rumors of major shifts, it is hard to see how shifts could occur. It is the irony of the moment that China and the Arabian Peninsula, neither of them particularly fond of the United States, are trapped into stabilizing the United States. And, so far, they are doing a fine job.

December 16, 2007 in Economics, Globalization | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: Arab oil, China, Dr. George Friedman, Dubai, investment, oil prices, Stratfor, subprime problem

Best Performing ETFs for the Past 52 Weeks through 12/12/2007

Trend: iShares MSCI Brazil Index (EWZ) led the 52-week performance (+90%, +12% for 4 weeks, +35% for 13 weeks), reflecting the growth in Brazil's economy and exports of industrial materials.

The 20 ETFs with the best 52 week performance tracked by Morningstar are highlighted below.

Link: MSN Money Exchange Traded Funds (ETFs) Performance Tracker

Name	Ticker	Category	Holdings	Morningstar	Last Price*	1-Wk	4-Wks	13-Wks	YTD	52-Wks	3-Yrs	5-Yrs
iShares MSCI Brazil Index	EWZ	Foreign Stock	holdings		$82.40	2.01	11.87	34.83	81.60	90.28	63.95	65.90
Market Vectors Steel ETF	SLX	Specialty - Natural Resources	holdings		$85.31	2.75	12.27	29.04	88.60	89.52	N/A	N/A
iShares FTSE/Xinhua China 25 Index	FXI	Diversified Emerging Markets	holdings		$176.05	-6.25	8.27	20.20	64.66	89.08	51.96	N/A
Claymore/BNY BRIC	EEB	Foreign Stock	holdings		$53.75	0.35	13.94	34.03	72.11	86.83	N/A	N/A
PowerShares Gldn Dragon Halter USX China	PGJ	Diversified Emerging Markets	holdings		$33.69	-3.34	14.98	24.01	65.79	80.34	35.42	N/A
iShares S&P Latin America 40 Index	ILF	Foreign Stock	holdings		$254.85	0.33	11.00	22.15	53.18	58.44	54.08	50.39
BLDRS Emerging Markets 50 ADR Index	ADRE	Diversified Emerging Markets	holdings		$55.41	0.04	9.92	21.40	47.87	55.88	45.11	37.32
Vanguard Emerging Markets Stock ETF	VWO	Diversified Emerging Markets	holdings		$108.06	-1.18	7.01	16.02	42.18	48.25	N/A	N/A
iShares MSCI Hong Kong Index	EWH	Pacific Stock	holdings		$22.20	-4.86	6.48	14.91	40.69	46.97	26.41	26.40
iShares MSCI Emerging Markets Index	EEM	Diversified Emerging Markets	holdings		$153.56	-0.97	8.82	16.62	38.05	44.78	37.41	N/A
WisdomTree Pacific ex-Japan Total Div	DND	Equity-Income	holdings		$85.83	-0.15	5.79	13.60	37.85	44.08	N/A	N/A
PowerShares WilderHill Clean Energy	PBW	Specialty - Natural Resources	holdings		$25.87	5.38	13.10	21.81	45.79	44.03	N/A	N/A
WisdomTree International Basic Materials	DBN	Specialty - Unaligned	holdings		$38.54	3.65	5.45	12.95	40.45	42.75	N/A	N/A
iShares S&P Global Materials	MXI	Specialty - Unaligned	holdings		$78.87	2.00	5.87	13.39	41.01	42.71	N/A	N/A
iShares MSCI Malaysia Index	EWM	Pacific Stock	holdings		$12.90	0.23	4.09	16.01	42.53	42.51	25.30	23.22
iPath S&P GSCI Crude Oil Tot Ret Idx ETN	OIL	Specialty - Natural Resources			$54.02	7.58	1.54	23.01	43.56	41.92	N/A	N/A
iShares MSCI South Korea Index	EWY	Pacific Stock	holdings		$66.40	-1.32	2.83	7.31	36.62	41.31	37.16	27.81
United States Oil	USO	Specialty - Natural Resources	holdings		$73.17	7.58	1.55	23.17	43.22	40.63	N/A	N/A
iShares MSCI Pacific ex-Japan	EPP	Pacific Stock	holdings		$166.50	0.01	4.70	11.41	34.76	40.49	29.58	30.09
iShares MSCI Australia Index	EWA	Pacific Stock	holdings		$31.67	1.33	3.71	11.73	35.74	40.07	31.03	32.14

Disclosure: We may own any EFT above at any time.

Please verify the performance of any ETF before investing.

December 13, 2007 in ETFs, Investing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: ADRE, DBN, DND, EEB, EEM, EPP, EWA, EWH, EWM, EWY, EWZ, FXI, ILF, iShares MSCI Brazil Index, Morningstar, MSN Money Exchange Traded Funds (ETFs) Performance, MXI, OIL, PBW, PGJ, SLX, USO, VWO

DBU - A Leading Resilient ETF

Trend: WisdomTree International Utilities ETF DBU is showing steady gains due to money moving to utilities as safe havens, favorable currency conversions, and exposure to the global infrastructure build.

Matthew D. McCall at Seeking Alpha describes why the WisdomTree International Utilities ETF (DBU) is attracting investment. Excerpts below.

DBU is one of the three Cream of the Crop Resilient ETFs we identified last week (link: Resilient ETFs: Cream of the Crop).

Link: 3 Portfolio-Protecting ETFs - Seeking Alpha.

A gain of over 4% in November has helped DBU to a new all-time high as the US market struggles with a 10% correction. The reason DBU has been able to shrug off the global market weakness has to do with several factors: utilities are viewed as "safe havens", ability to take advantage of the weak US Dollar, and exposure to the global infrastructure build. Even though many of the European utilities do not pay the hefty dividends of their US cousins, they are considered a place to park some money in a choppy market when interest rates are falling.

The fact they generate the majority of their revenue in local foreign currency and the conversion to US dollars help improve the bottom line. Then there is the play on infrastructure. Many of the top ten holdings are involved in supplying power as well as building new plants in Europe and the emerging markets. After looking further into DBU it is clear why it has been able to outperform the market and continue hitting new highs.

Disclosure: We may own the ETF(s) covered above at any time.

December 13, 2007 in ETFs, Investing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: DBU, ETF, ETFs, Matthew D. McCall, Resilient ETFs, Seeking Alpha, WisdomTree International Utilities ETF

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