Dion’s Monday 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
United States Natural Gas Fund (UNG) 2.4%
Natural gas prices are seeing a lift today, pulling UNG higher. Last week, this troubled fund managed to carve out new all-time lows as investors steered clear of energy for fear of faltering global demand.
Natural gas is still attractive but remains tricky to play via the futures-backed UNG. First Trust ISE-Revere Natural Gas Index ETF (FCG) is a far safer bet. Today, FCG has traded in unchanged territory.
iPath Dow Jones-UBS Grains Total Return Subindex ETN (JJG) 0.9%
Poor weather conditions are weighing on yield predictions in the grain industry, causing futures prices to rally. JJG, which is designed to track the prices of corn, wheat, and soybeans, is a major beneficiary, earning a spot among the winners heading into the start of the week.
Corn, in particular, is rallying, touching a 14-month high.
iShares Barclays 20+ Year Treasury Bond Fund (TLT) 1.4%
Investors are opting for defense as they prepare for another flood of economic data heading into the start of this week. In response, long term Treasuries are once again seeing a jump. Meanwhile, ProShares UltraShort 20+ Year Treasury ETF (TBT) has fallen nearly 3%.
Losers
iShares MSCI Sweden Index Fund (EWD) -2.8%
Europe remains an area of concern as debt-laden nations struggle to get their budgets in check. Today, Italy is the worst performing of the PIIGS nations, with the iShares MSCI Italy Index Fund (EWI) taking the biggest knock, falling 2.1%.
Sweden is running into trouble of its own on Monday after news that HQ Bank, a Swedish investment bank, was entering liquidation. This will weigh on the nation’s financial industry which at more than 27%, represents the largest sector slice of EWD’s portfolio.
Market Vectors Indonesia ETF (IDX) -2.5%
The Indonesian marketplace is retreating Monday after ending last week on a high note. Looking ahead, investors may want to be cautious of Indonesia. Since Aug 29, a volcano has been erupting, threatening the nation’s population. As with the volcanic eruption which threatened Europe earlier this year, investors may be in for a rocky ride.
SPDR KBW Regional Banking ETF (KRE) -2.2%
The regional banking industry is struggling today, sending KRE and iShares Dow Jones U.S. Regional Banking Index Fund (IAT) lower.
Although it is taking a knock today, KRE is my favorite choice for playing regional banks. IAT is heavily influenced by regional banks such as US Bancorp (USB) and PNC Financial (PNC) , which command 17% and 11% of the fund respectively. KRE, on the other hand is far less top-heavy. The fund’s top 10 positions represent slightly more than a quarter of its total portfolio.
