Dion’s Daily ETF Thermometer
Welcome to Don Dion’s Daily ETF Thermometer. Be sure to stop by each day to get a feel of the ETFs that were hot and those that were cold.
Investors started off this shortened week of trading strong, sending all three major indices higher. The ETFS Physical Palladium Shares(PALL) led the pack, scoring some of the most impressive gains across the industry.
iPath DJ-UBS Copper Total Return Sub-Index ETN(JJC) and iPath DJ-UBS Aluminum Total Return Sub-Index ETN(JJU) both had solid gains going into late trading and the PowerShares DB Base Metals ETF(DBB), which holds one-third of assets in each metal, plus a third in zinc, was trading higher as well.
At the London Metal Exchange, copper inventory has fallen for 18 days, nickel for six. In addition to stronger demand, the weaker U.S. dollar is broadly supportive of commodity prices.
On the other side of the spectrum, the iPath S&P 500 VIX Short Term Futures ETN(VXX) suffered some of the biggest losses on the day. VXX continues to trend lower as implied volatility falls, indicating more optimistic investor sentiment. As it moves beyond the mid-point of its historic range, it could retest the extreme lows of the mid-teens last seen in May 2008.
The threat of regulation from Washington continued to weigh on the financial industry sending funds including SPDR KBW Regional Banking(KRE) and SPDR KBW Bank(KBE) lower.
Investors holding the iShares MSCI Thailand Investable Market Index Fund(THD) felt a burn despite a revised 2010 growth forecast. Markets have struggled as protestors continue to face off against the nation’s unpopular Prime Minister, Abhisit Vejjajiva.
Hot
1.ETFS Physical Palladium Shares(PALL) 4.2%
2. iPath Dow Jones-UBS Sugar Total Return Subindex ETN(SGG) 3.8%
3. iPath Dow Jones-UBS Copper Total Return Subindex ETN(JJC) 3.5%
4. PowerShares DB Base Metals(DBB) 3.6%
5. United States Oil Fund(USO) 2.8%
6. Market Vectors Steel ETF(KOL) 2.8%
Cold
1. iPath S&P 500 VIX Short Term Futures ETN(VXX) -0.7%
2. iShares MSCI Thailand Investable Market Index Fund(THD) -0.7%
3. SPDR KBW Bank(KBE) -0.7%
4. iShares Dow Jones U.S. Home Construction Index Fund(ITB) -0.7%
5.SPDR KBW Regional Banking(KRE) (KRE) -0.5%
6.iShares Barclays 20+ Year Treasury Bond Index Fund(TLT) -0.4%
Note: All prices as of 2:15 p.m. EST
