Trends I'm Watching

New ETF Tracks Smartphone Industry - Ticker FONE

Trend: Smartphones and related technology continue a global rise in popularity, outselling computers and creating a new industry led by Apple.

Link: ETF FONE Home: First Trust Introduces Smart Phone ETF by Ron Rowland

First Trust introduced a new ETF on February 17, 2011, targeting the rapidly growing global smart phone industry. The First Trust NASDAQ CEA Smart phone Index Fund (FONE) includes stocks of companies primarily involved in design, fabrication and distribution of handsets, along with hardware, software and mobile networks associated with the development, sale, and usage of the devices.

The NASDAQ OMX CEA Smart phone Index is a modified equal dollar weighted index with 45% allocated to handsets, 45% allocated to software applications and hardware components, and 10% allocated to network providers.

Invest In Commodities That Are In Demand

Trend: The supply of some commodities, like copper, has not been meeting demand, resulting in price increases and big profits for suppliers - and investors.

MSN Money columnist Jim Jubak provides some guidelines for investing in commodities.

Link: Bet long-term for commodity profits - Jim Jubak, MSN Money

Jim Jubak's 3 principles for commodity investing:

Best Performing ETFs for the Past 4 Weeks – 1/31/2011

Trend: Direxion Daily Gold Miners Bear 2X Shrs (DUST) led the 4-week performance (+27%). Direxion Daily India Bear 2X Shares (INDZ) and Direxion Daily Energy Bull 3X Shares (ERX) were the second and third best performers, respectively.

The 20 ETFs with the best four week performance through 1/31/2011 tracked by Morningstar are shown below.

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

NAME	TICKER	CATEGORY	HOLDINGS	MORNINGSTAR	LAST PRICE*	1-WK	4-WKS	13-WKS	YTD	52-WK	3-YRS	5-YRS
Direxion Daily Gold Miners Bear 2X Shrs	DUST	Specialty - Precious Metals	holdings		$48.35	-2.60	27.02	N/A	27.02	N/A	N/A	N/A
Direxion Daily India Bear 2X Shares	INDZ	Foreign Stock	holdings		$30.88	10.00	26.96	19.30	26.96	N/A	N/A	N/A
Direxion Daily Energy Bull 3X Shares	ERX	Specialty - Natural Resources	holdings		$74.85	11.06	21.76	85.92	21.76	110.83	N/A	N/A
Direxion Daily Semicondct Bull 3X Shares	SOXL	Specialty - Technology	holdings		$64.74	-1.31	20.76	60.94	20.76	N/A	N/A	N/A
iPath DJ-UBS Cotton TR Sub-Idx ETN	BAL	Specialty - Natural Resources			$87.86	2.64	17.95	40.03	17.95	155.21	N/A	N/A
ProShares UltraShort Silver	ZSL	Specialty - Precious Metals	holdings		$11.04	-8.60	16.90	-31.67	16.90	-77.27	N/A	N/A
VelocityShares Daily Inverse VIX ST ETN	XIV	Growth			$144.57	-2.59	15.15	N/A	15.15	N/A	N/A	N/A
B2B Internet HOLDRs	BHH	Specialty - Technology	holdings		$1.06	16.90	15.05	44.56	15.05	128.14	41.21	12.69
ProShares Ultra Oil & Gas	DIG	Specialty - Natural Resources	holdings		$54.48	7.55	15.04	51.48	15.04	68.96	-13.03	N/A
iShares MSCI Spain Index	EWP	Europe Stock	holdings		$42.89	0.29	13.96	0.49	13.96	3.41	-4.66	5.74
ProShares UltraShort Gold	GLL	Specialty - Precious Metals	holdings		$31.03	0.48	13.42	1.45	13.42	-39.83	N/A	N/A
Direxion Daily Latin America Bear 3X Shs	LHB	Foreign Stock	holdings		$17.44	8.46	13.42	-4.03	13.42	-65.28	N/A	N/A
PowerShares DB Gold Double Short ETN	DZZ	Specialty - Precious Metals			$8.90	0.56	13.16	2.96	13.16	-37.38	N/A	N/A
iPath DJ-UBS Tin TR Sub-Idx ETN	JJT	Specialty - Natural Resources			$71.50	8.73	12.61	17.83	12.61	78.40	N/A	N/A
Direxion Daily Technology Bull 3X Shares	TYH	Specialty - Technology	holdings		$53.31	-0.69	11.43	25.98	11.43	80.44	N/A	N/A
PowerShares DB Agriculture Dble Long ETN	DAG	Specialty - Natural Resources			$15.99	2.36	11.09	22.73	11.09	66.81	N/A	N/A
Market Vectors Solar Energy ETF	KWT	Specialty - Natural Resources	holdings		$12.52	-4.62	10.92	-3.04	10.92	-5.97	N/A	N/A
iPath DJ-UBS Cocoa TR Sub-Idx ETN	NIB	Specialty - Natural Resources			$47.49	2.07	10.89	18.75	10.89	-0.19	N/A	N/A
ELEMENTS CS Global Warming ETN	GWO	Specialty - Natural Resources			$8.70	3.04	10.80	36.90	10.80	21.82	N/A	N/A
Direxion Daily Emrg Mkts Bear 3X Shares	EDZ	Diversified Emerging Markets	holdings		$20.83	6.19	10.79	-6.82	10.79	-63.57	N/A	N/A

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

Please verify the performance of any ETF before investing.

Best Performing ETFs for the Past 13 Weeks – 1/31/2011

Trend: Direxion Daily Energy Bull 3X Shares (ERX) led the 13-week performance (+86%). Direxion Daily Semicondct Bull 3X Shares (SOXL) and ProShares Ultra Oil & Gas (DIG) were the second and third best performers, respectively.

The 20 ETFs with the best 13-week performance through 1/31/2011 tracked by Morningstar are shown below.

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

NAME	TICKER	CATEGORY	HOLDINGS	MORNINGSTAR	LAST PRICE*	1-WK	4-WKS	13-WKS	YTD	52-WK	3-YRS	5-YRS
Direxion Daily Energy Bull 3X Shares	ERX	Specialty - Natural Resources	holdings		$74.85	11.06	21.76	85.92	21.76	110.83	N/A	N/A
Direxion Daily Semicondct Bull 3X Shares	SOXL	Specialty - Technology	holdings		$64.74	-1.31	20.76	60.94	20.76	N/A	N/A	N/A
ProShares Ultra Oil & Gas	DIG	Specialty - Natural Resources	holdings		$54.48	7.55	15.04	51.48	15.04	68.96	-13.03	N/A
B2B Internet HOLDRs	BHH	Specialty - Technology	holdings		$1.06	16.90	15.05	44.56	15.05	128.14	41.21	12.69
Direxion Daily Nat Gas Rltd Bull 2X Shrs	FCGL	Specialty - Natural Resources			$66.51	0.30	5.53	40.06	5.53	N/A	N/A	N/A
iPath DJ-UBS Cotton TR Sub-Idx ETN	BAL	Specialty - Natural Resources			$87.86	2.64	17.95	40.03	17.95	155.21	N/A	N/A
ProShares UltraPro MidCap400	UMDD	Growth	holdings		$172.69	0.77	5.10	37.67	5.10	N/A	N/A	N/A
ELEMENTS CS Global Warming ETN	GWO	Specialty - Natural Resources			$8.70	3.04	10.80	36.90	10.80	21.82	N/A	N/A
PowerShares S&P SmallCap Energy	XLES	Specialty - Natural Resources	holdings		$36.28	7.20	6.08	36.49	6.08	N/A	N/A	N/A
Direxion Daily Financial Bull 3X Shares	FAS	Specialty - Financial	holdings		$31.60	-0.66	7.56	35.03	7.56	29.86	N/A	N/A
ProShares UltraPro Russell2000	URTY	Growth	holdings		$165.58	-0.10	-2.17	34.87	-2.17	N/A	N/A	N/A
Direxion Daily Small Cap Bull 3X Shares	TNA	Small Company	holdings		$75.76	0.31	-2.03	34.83	-2.03	86.91	N/A	N/A
Direxion Daily Mid Cap Bull 3X Shares	MWJ	Growth	holdings		N/A	0.97	5.46	34.71	5.46	102.09	N/A	N/A
ProShares Ultra Semiconductors	USD	Specialty - Technology	holdings		N/A	-1.04	10.10	32.85	10.10	65.42	-2.99	N/A
ProShares Ultra KBW Regional Banking	KRU	Specialty - Financial	holdings		N/A	-2.59	-2.96	31.58	-2.96	N/A	N/A	N/A
ProShares Ultra Industrials	UXI	Specialty - Unaligned	holdings		N/A	0.00	8.29	30.43	8.29	71.50	-8.87	N/A
SPDR S&P Oil & Gas Exploration & Prod	XOP	Specialty - Natural Resources	holdings		N/A	5.62	7.58	29.61	7.58	44.46	6.35	N/A
Oil Services HOLDRs	OIH	Specialty - Natural Resources	holdings		N/A	7.55	9.52	29.24	9.52	32.98	0.69	0.78
Direxion Daily Large Cap Bull 3X Shares	BGU	Growth	holdings		N/A	-0.82	6.55	29.21	6.55	67.78	N/A	N/A
PowerShares Dynamic Energy Explor & Prod	PXE	Specialty - Natural Resources	holdings		N/A	4.26	7.20	28.92	7.20	55.50	3.54	5.33

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

Please verify the performance of any ETF before investing.