Dion’s Weekly ETF Winners and Losers
Winners
iPath S&P 500 VIX Short Term Futures ETN (VXX) +10.9%
Fear fell back into favor this week as debt concerns in Europe rattled investors.
In the past week, VXX has managed to see a bounce off its 50-day moving average, recovering all of the losses it suffered during the prior week.
Given the economic issues that persist in today’s global markets, volatility is certain to be present, but VXX is best watched from the sidelines.
Claymore/AlphaShares China Real Estate Index ETF (TAO) +2.7%
China surprised the global markets this week when the nation decided to relax its grip on the yuan. The currency’s gains helped power the nations markets higher, providing some welcomed relief to the real estate sector and TAO. Since mid-April, this fund has struggled to gain a footing as Beijing lawmakers take steps to cool the overheating property market.
PowerShares DB Base Metals ETF (DBB) +5.8%
Base metals witnessed an impressive rally this week. Copper was one of the fund’s strongest constituents, with iPath Dow Jones-UBS Copper Total Return Subindex ETN (JJC) also making this week’s winners list. The gains from this red metal come even after less than optimistic U.S. housing numbers.
Going forward, base metal investors should keep a close watch on China. This nation’s demand for copper, aluminum and zinc will likely play a huge factor in determining their prices.
Losers
First Trust Revere-ISE Natural Gas Index ETF (FCG) -7.1%
Natural gas prices and United States Natural Gas Fund(UNG) continued to fluctuate in response to weekly government reports and weather forecasts. In the end, both ended the week lower.
The natural gas producers faced additional heat this week thanks to a slew of bad press. At the start of the week, HBO screened, “Gasland,” the award winning documentary that highlights the negative effects the hydraulic fracturing, or “fracking” method of gas extraction has on the environment. Additionally, Vanity Fair published its own detailed article depicting the negative effects the gas industry has had on the lives of the people living close to fuel production sites.
Shares MSCI Spain Index Fund (EWP) -6.5%
Recently, the debt crisis facing the European Union has been pushed to the back of investors’ minds. However, this week, fear returned and the most troubled constituents of the currency bloc were forced lower. EWP and iShares MSCI Italy Index Fund(EWI) (were among this week’s biggest international market-focused ETF losers.
iShares Dow Jones U.S. Oil Equipment & Services Index Fund (IEZ) -5.3%
Oil producers got hit on two flanks this week, leading to tough times for industry related products: IEZ and iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund(IEO). Not only did oil prices tumble this week, but BP(BP) continued to fumble in its efforts to end the crisis facing the Gulf of Mexico, leading to continued anger, fear, and frustration from investors. Cost estimates of BP’s clean up are currently more than $2 billion.
