Dion’s Wednesday ETF Winners and Losers
Welcome to Don Dion’s Daily ETF Winners and Losers. Be sure to stop by each day to get a feel of who’s winning and who’s losing when it comes to ETFs.
Winners
iPath Dow Jones-UBS Grains Total Return Subindex ETN(JJG) 4.3%
The grain industry is scoring impressive gains today from the strength in corn prices.
In a report from the U.S. Department of Agriculture, researchers found that farmers had planted fewer acres of corn than even their lowest range predictions.
Corn accounts for slightly more than a third of JJG’s index.
iShares MSCI Spain Index Fund(EWP) 1.7%
The Spain ETF jumped today after a report found that demand for European Central Bank loans was lower than expected.
Banco Santander(SAN) and Banco Bilbao Vizcaya Argenta(BBVA) jumped higher off the news. Together, these two holdings account for 30% of the fund’s total portfolio.
EWP’s second largest holding, Telefonica(TEF), is scoring gains as well after Portugal’s government blocked its bid for the stake of Brasilcel owned by Portugal Telecom.
PowerShares India Portfolio(PIN) 2.3%
Despite economic tensions that continue to face Europe and China, India’s markets have performed noticeably well. On Wednesday, PIN and other India focused ETFs rose as the Indian rupee found strength and the nation’s government announced it would partially deregulate fuel prices.
From a technical perspective, PIN and WisdomTree India Earnings Fund(EPI) have managed to stay above their 50-day moving averages all year.
Market Vectors Indonesia ETF(IDX) 1.6%
IDX is another Asian nation fund which has performed well despite the recent spell of economic headwinds. Currently the fund, which is designed to track a basket of the most prominent companies comprising the Indonesian market, is on the verge of testing previous 2010 highs. Investors should keep a close eye on this fund to see if it can overtake this level.
Oil Services HOLDRs(OIH) 2.3%
Despite the trouble in the Gulf, the energy industry is turning out strong gains. Baker Hughes and Halliburton are among the top performing oil players driving OIH on Wednesday. Other oil-industry related ETFs heading higher include SPDR S&P Oil & Gas Equipment & Services ETF(XES), iShares Dow Jones U.S. Oil Equipment Index Fund(IEZ) and PowerShares Dynamic Oil &Gas Services Portfolio(PXJ).
Losers
iPath S&P 500 VIX Short-Term Futures ETN(VXX) -2.0%
Yesterday’s tumble brought the S&P to the verge of breaking through the closely watched 1040 level. However, on Wednesday, the markets showed resilience, powering higher and driving fear back for the time being.
Despite today’s strength, investors should continue to practice caution heading into the rest of the week.
Telecom HOLDRs(TTH) -0.4%
The top heavy telecom HOLDRs fund is taking a hit today thanks to strain from both AT&T(T) and Verizon(VZ). Together, these two firms represent nearly three quarters of the fund’s total portfolio, making it an excessively risky play.
