Don Dion’s Weekly ETF Winners and Losers
Here are this week’s ETF winners and losers.
Winners
iPath Dow Jones-UBS Nickel ETN(JJN) +12.2%
iPath Dow Jones-UBS Copper ETN(JJC) +8.8%
iPath Dow Jones-UBS Industrial Metals ETN(JJM) +8.5%
PowerShares DB Base Metals Fund(DBB) +7.6%
For the second consecutive week, base metals were some of the biggest winners across the ETF arena. Though it was nickel that saw the steepest jump, copper had a nice rally as well. Both the iPath Dow Jones UBS Nickel Total Return Sub-Index ETN and the iPath Dow Jones UBS Copper Total Return Sub-Index ETN are back above their 50-day moving averages.
While copper and nickel performed well, PowerShares DB Base Metals Fund lagged. Nickel is absent from the fund, which has one-third of its portfolio dedicated to copper. Instead, the remaining two-thirds of DBB’s index are dedicated to aluminum and zinc: two metals that underperformed this week.
iShares Cohen & Steers Realty Majors(ICF) +5.6%
iShares Dow Jones U.S. Real Estate(IYR) +5.0%
SPDR Dow Jones REIT(RWR) +5.5%
Vanguard REIT(VNQ) +5.4%
REITs made the losers list last week, although the losses were tepid in a week when the S&P 500 Index marched higher. This week, they reversed course strongly and erased nearly a month’s worth of losses.
The big news of the week was Simon Property Group’s(SPG) $10 billion offer for General Growth Properties(GGWPQ), which is currently in Chapter 11 bankruptcy. General Growth rejected the offer but appears willing to deal for the right price.
PowerShares Dynamic Media Fund(PBS) +6.0%
PowerShares Dynamic Media Fund came out a big gainer this week. Viewers tuning in to watch the likes of Shaun White and Lindsey Vonn win gold at the 2010 Winter Olympics had little impact on the fund’s rise. TV companies including Comcast(CMCSA), Time Warner(TWX) and Viacom(VIA) ended the week with only slight gains or in line with the broad market.
Instead, it was largely radio that powered the fund higher. On Wednesday, Sirius XM Radio(SIRI) broke the $1 dollar mark and managed to hold that level, gaining more than 20% this week. PBS is one of the only exchange-traded funds to hold a notable position in the satellite radio company. The firm is the ETF’s eighth largest holding, accounting for more than 4% of its assets.
Losers
CurrencyShares Japanese Yen(FXY) -1.8%
Although the problems with debt in the eurozone and the euro’s struggle against the dollar continued to grab headlines this week, it was not the only major currency to lose ground against the dollar. The yen declined even more against the dollar, while the CurrencyShares Euro(FXE) was down only 0.2% this week. At its current level, FXY is nestled just above its 200-day moving average.
Market Vectors Solar(KWT) -0.3%
Claymore/MAC Global Solar(TAN) +0.3%
The solar sector continued to underperform after bad news on Friday. Most importantly, First Solar’s(FSLR) forecast disappointed investors. Germany plans to cut its solar subsidies. That may cause a spike in near-term sales as Germans rush to take advantage, but once it is gone, sales may slump considerably.
Shares of FSLR lost more than 8% on Friday, even though they actually ended the week slightly higher. The company is the top holding in TAN and the second largest holding in KWT.
Elsewhere, Canadian Solar(CSIQ), a top-10 holding in both funds, cut its fourth-quarter margin estimates on Friday. Shares tumbled nearly 16% on the news and the slide was responsible for a considerable amount of the Friday losses in these ETFs.
United States Natural Gas(UNG) -6.8%
iPath Dow Jones-UBS Natural Gas ETN(GAZ) -6.6%
United States 12-Month Natural Gas(UNL) -6.3%
Natural gas inventories declined as expected, but investors are starting to look at the calendar. March is right around the corner, and natural gas demand will start to decline as temperatures rise, while inventories remain near the high end of their five-year average.
