Dion Money Management Blog   Money Management for Retirees and Their Families

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 S&P 500 VIX Short Term Futures ETN (VXX) 2.2%
After starting the day on a strong note, all three of the major U.S. indices are now trading in the red. This type of swing is doing little to calm investor nerves, providing an ideal scenario for the fear-based VIX to see some gains.

Rather than trying your luck with VXX or other VIX-based products, investors should seek out defensive plays such as gold, bonds and dividend-paying equities to protect against market volatility.

Guggenheim Solar Energy ETF (TAN) 1.6%
The solar energy ETF has jockeyed back and forth all day. However, by early afternoon the fund was trading in solid positive territory.

Yingli Green Energy (YGE) , Trina Solar (TSL) , and JA Solar (JAS) have been three notable sources of strength throughout the day.

As I explained Wednesday, TAN’s gains should be viewed with caution. Macro concerns facing the developed world still threaten to quell the solar industry’s prospects.

iShares Dow Jones U.S. Health Care Providers Index Fund (IHF) 0.7%
The health care provider industry is one region of the market which has managed to maintain strength in today’s market.

IHF has seen an impressive rise throughout the month of September, breaking through both its 50- and 200-day moving averages. While health care will certainly be a region of the markets to watch in the future, playing it will be tricky as companies find ways to cope with Washington’s healthcare reform legislation.

Losers

United States Natural Gas Fund (UNG) -2.7%
Within the energy realm, investors are seeing mixed performance. Oil prices are heading higher, as indicated by early strength from United States Oil Fund (USO) . Meanwhile, natural gas is getting knocked, leading UNG lower. The slide comes after the Energy Information Administration released its weekly storage report numbers.

iPath Dow Jones UBS Grains Total Return Subindex ETN (JJG) -1.5%
Agriculture is seeing weakness today, with JJG , iPath Dow Jones UBS Sugar Total Return Subindex ETN (SGG) and PowerShares DB Agriculture Portfolio (DBA) treading lower.
The agriculture industry remains an interesting region of the market. Investors cautious of playing futures-based products such as JJG, SGG, and DBA may want to try the equity-backed Market Vectors Agribusiness ETF (MOO) .

Market Vectors Gold Miners ETF (GDX) -1.8%
Gold prices are taking a breather from its staggering rally. This, in turn, is putting pressure on gold miners of all sizes. GDX and the small-cap Market Vectors Junior Gold Miners ETF (GDXJ) are both getting hit.

Today’s dip should not lead investors to unwind their positions in either gold miners or physically backed gold products such as iShares Gold Shares (IAU) . With economic issues still facing many regions of the globe, the protection that comes with gold will continue to be popular.

Disclaimer

A troubling economic climate has weighed heavily on investors’ confidence in the idea of active portfolio management. This, in turn, has allowed index mutual funds and the ETF industry to expand at breakneck speed.

As evidence of this shift from active to passive investing strategies, Vanguard has managed to dethrone Fidelity Investments to become the largest mutual fund company by assets, putting an end to the latter’s two decade reign.

Citing a report from the Investment Company Institute,

Although the shift towards passive management may have been a major element leading Vanguard to steal the crown, another important quality to consider is its dedication to keeping costs low. Hailed by many as an investor champion, founder, Bogle has been long been a harsh critic of the mutual fund industry, calling for reduced costs for shareholders.

By utilizing indexes rather than active managers, Vanguard funds typically see far less turnover, allowing for reduced expense ratios.

While impressive, the real disparity between Vanguard and Fidelity is likely far greater than the report claims. According to

Vanguard offers a growing collection of exchange traded products. Meanwhile, with no funds carrying the Fidelity name, it appears as though the mutual fund firm has missed its chance to become a force to be reckoned with in the ETF industry.

Vanguard’s taking the top spot in the mutual fund industry is an exciting development and looking ahead I will be closely watching to see if the firm can do the same in the ETF industry.

Although still relatively new to the game, Vanguard has made some impressive steps towards gaining supremacy in this arena as well. It continues to be exciting, each month, to watch the ongoing saga play out between the iShares MSCI Emerging Market Index Fund (EEM) and Vanguard’s Vanguard Emerging Market ETF (VWO) . With lower costs and reduced tracking error, VWO has managed to consistently steal assets from the elder EEM.

VWO has been a success story and more recently Vanguard has launched other products aimed at stealing away additional market share from industry leaders BlackRock (BLK) and State Street (STT) .

In recent weeks, Vanguard has unveiled two suites of funds designed to track variations of the S&P and Russell Indexes. It will be interesting to see how the veteran products such as iShares S&P 500 Index Fund (IVV) and SPDR S&P 500 ETF (SPY) perform compared to newcomer Vanguard S&P 500 ETF (VOO) .

As with VWO, VOO’s expenses are less than those of IVV and SPY. If the EEM/VWO battle is any indication as to how this showdown will play out, industry leaders should be concerned.

Seeing Vanguard’s army of index mutual funds earn the top spot within the broad mutual fund industry not only bodes well for Vanguard, but also for the broad ETF universe.

Investors remain concerned about economic conditions, wary of entrusting active mutual fund managers with their money, and conscious of costs. With the lion’s share of ETFs offering a low cost opportunity to play broad swaths of the market through the use of passive indexes, I predict a bright future for these products.

Disclaimer

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 S&P 500 VIX Short Term Futures ETN (VXX) 0.9%
All three major U.S. indices were treading in negative territory today, paving the way for the VIX-based ETNs to score some upside strength.

VXX continues to trade around all- time lows, though it appears to have flattened out in recent weeks. Investors should continue to steer clear of this fund at all means.

Guggenheim Solar ETF (TAN) 3.1%
Despite economic concerns from Europe, the solar energy industry is still managing to churn out gains today, continuing along the upward path it has been on since the start of September.

Despite the fund’s impressive run, investors should still exhibit caution when approaching this industry. Solar companies are heavily reliant on government subsidies. With talks of austerity still in the air, these handouts remain threatened.

iShares Dow Jones U.S. Oil Equipment & Services Index Fund (IEZ) 2%
Trading is choppy today but the oil industry is still managing to pull off a day of gains. The fund’s ascension throughout September has helped it surpass previous summer highs, approaching levels last seen at the start of May.

Energy continues to be an exciting area of the market to watch and IEZ is a far more reliable play on the industry than a futures-backed fund such as the United States Oil Fund (USO) .

United States Natural Gas Fund (UNG) 0.0%
The UNG started off the day suffering noteworthy losses in light of waning concerns about the Gulf storm outlook and the generally choppy market. However, by mid-afternoon, the fund managed to recoup its losses and is currently trading in unchanged territory.

Losers

iPath Dow Jones UBS Sugar Total Return Subindex ETN (SGG) -1.5%
After five consecutive gains, the sugar ETN is taking a breather. This fund’s ascension has been staggering and it is currently trading at levels last seen in the latter half of February.

While impressive, I continue to advise investors looking for agriculture exposure to look to the PowerShares DB Agriculture Portfolio (DBA) , a diversified portfolio that is better suited to weather dips in any single crop. Today, the fund is down only 0.8%.

iShares MSCI Spain Index Fund (EWP) -0.5%
Ongoing concerns about the nation’s debt picture and threats of austerity are driving Spanish citizens to the street in protest. This political turmoil is weighing heavily on the nation’s markets and driving EWP lower. Expect this fund to continue to trade wildly as the nation seeks solutions to its political and economic crises.

Disclaimer

Southwest Airlines’ (LUV) decision to acquire AirTran (AAI) follows on the heels of the announcement that Continental (CAL) was uniting with United (UAUA).

This boost in M&A activity within the airline industry may have investors eyeing the sector right now.

Unfortunately, the ETF that provides specific exposure to the industry, the Guggenheim Airline ETF (FAA) , has a few flaws which make me hesitant towards recommending it for a long-term position.

For one, FAA spreads assets amongst its portfolio components a bit too unevenly for my taste. The fund, which until recently was known as the Claymore/NYSE Arca Global Airline ETF, devotes roughly 15% of net assets each to its top three holdings, Southwest Airlines, United and Delta Air Lines (DAL) .

Also, despite being a global fund, FAA allocates a lopsided 72% of net assets to companies from the United States.

The final problem with FAA, and perhaps the greatest, is its low volume, which makes it vulnerable to volatility and tracking error.

Although investors have no other alternative fund that can be considered a pure play on the airline industry, there are ways to gain exposure to the sector through other products.

One option is to use iShares Dow Jones Transportation Average Index Fund (IYT) . This fund tracks companies which represent multiple sub-sectors of the broad transportation industry.

The airline industry claims 8% of net assets in the ETF and the five companies represented in order of greatest exposure to least exposure are CAL, LUV, DAL, JetBlue (JBLU) , and AMR (AMR) .

In addition to the airline sector, companies from the railroad, marine, and trucking transportation sectors are all represented.

The best represented industries are railroads, delivery services, and trucking, which account for 28%, 23%, and 21% of the ETF’s portfolio, respectively. Examples of companies from these three sectors, respectively, are Union Pacific (UNP) , FedEx (FDX) , and C.H. Robinson Worldwide (CHRW) .

The sector diversification inherent of a fund like IYT will give investors greater stability in the face of market headwinds. The ample volume of the ETF will also allow investors to not be concerned about liquidity or tracking error.

While stable, with such a small portion of its index set aside for the airlines, investors specifically seeking exposure to the industry may be left wanting more. In this case, there is a transportation-focused mutual fund which allocates a greater portion of its portfolio to the airline industry.

Fidelity Transportation Fund (FSRFX) boasts over 12% of its assets are devoted to the airline industry, making its devotion to the sector slightly greater than IYT.

Although it has a larger portion of its portfolio set aside for the airlines, FSRFX shares a number of similarities with its ETF competitor. The two funds share six of same companies in their top 10 holdings.

Ultimately, I feel that the transportation industry will be an important region of the market to watch as we head not only towards economic recovery, but into the 2010 holiday season.

While both IYT and FSRFX are suitable alternatives to FAA, they appeal to different audiences. Those seeking a broad play on the transports should stick to IYT. Those who are specifically looking for airline exposure, however, should find FSRFX more to their liking.

Disclaimer

The questionable economic climate in the United States and Europe has lead many internationally-minded investors to avoid the developed world and pile into the emerging markets.

BRIC ETFs are some of the most popular products designed to track emerging nations. These funds provide investors with one stop exposure to Brazil, Russia, China, and India, which are considered four of the most sought after emerging markets today.

In the past year, funds such as iShares MSCI BRIC ETF (BKF) and Guggenhiem BRIC ETF (EEB) have handedly outperformed the S&P 500 .

While products such as BKF and EEB provide exposure to the hot developing world, they are not without their shortcomings. Perhaps most notable is the fact that EEB and BKF are far from evenly weighted across the four constituents.

Although they are designed to track all four countries, within both EEB and BKF, China and Brazil command the lion’s share of the index while India and Russia are noticeably downplayed.

Investors looking for a less traditional basket of emerging markets may find two BRIC-alternative funds from First Trust more to their liking.

The First Trust ISE Chindia Index Fund (FNI) and First Trust BICK Index (BICK) give investors exposure to new takes on the old BRIC acronym.

In the past month period, FNI and BICK have managed to outperform their traditional BRIC-focused competitors.

FNI is designed to provide investors with concentrated exposure to the second half of the BRIC acronym. Excluding Brazil and Russia, this fund dedicates its entire portfolio to the markets of China and India. According to the fund website, FNI makes a strong effort to divide exposure across the two nations in an equal fashion.

Currently the fund’s top positions included ICICI Bank (IBN) , Baidu (BIDU) , HDFC Bank (HDB) , Infosys Technologies (INFY) , and China Mobile (CHM) . The fund is set up in a tiered structure with these five positions accounting for 36% of its total index.

FNI carries a 0.60% expense ratio, making it less expensive than its BRIC competitors.

Whereas FNI focuses on a concentrated slice of the traditional BRIC index, BICK shakes up the basket by dropping companies hailing from Russia and filling the gap with exposure to South Korean firms.

Similar to FNI, BICK attempts to weight exposure to each nation equally, thereby ensuring that no single country controls the fund’s movements.

BICK’s top positions include Axis Bank, Wipro (WIT) , Larsen and Toubro, HDFC Bank, and Sterlite Industries (SLT) . The fund’s index is strongly diversified, with its top five positions accounting for less than 10% of its total portfolio.

Being a new product and the first fund of its kind, BICK has struggled to generate a strong following. Today, the fund’s average trading volume is only 15,000, thereby making it too illiquid to be considered a safe play. The fund is not quite out of the question, however.

First Trust has recently taken action which may result in this fund becoming a suitable investing alternative to veteran BRIC products.

Late last week, the fund’s provider announced that it was slashing its expense ratio to 0.64% from 0.70%. This reduced price places the fund in line with classic BRIC-focused products. This change will go into effect on Oct. 1.

Given the current economic conditions, I do not expect emerging markets to fall out of favor any time in the near future. Investors have a number of options to consider when looking for exposure to this region of the globe and FNI and BICK each offer a new play on an old favorite.

Disclaimer

ETF investors will be closely watching to see if gold continues to rise this week while monitoring some key reports and developments in real estate, agriculture and emerging markets.

iShares Cohen & Steers Realty Majors Index Fund (ICF)
Last week, investors had their fingers on the U.S. real estate industry’s pulse as a number of industry leaders such as KB Homes (KBH) and Lennar (LEN) reported their quarterly earnings numbers.

Additionally, there were reports regarding new home sales and housing starts. Looking to this week, real estate investors will have their eyes set on Tuesday when Case-Shiller data for July is released.

As I explained last week, despite my generally positive outlook for the broad economy, I have reservations about the real estate industry. While there may see strength in the short term, I still see supply issues as a persistent weight on homebuilders and ETFs such as SPDR S&P Homebuilder ETF (XHB) . REITS and commercial real estate, however, appear more stable looking to the future. Risk tolerant, income-seeking investors may find a fund such as ICF attractive.

PowerShares DB Agriculture Portfolio (DBA)
Agriculture continues to be a hot market sector and it will be interesting to watch both the futures-based DBA and the equity-based Market Vectors Agribusiness ETF (MOO) in the coming days.

In Russia, growers continue to battle against the elements to get their winter wheat planted. Although rain is in the forecast, many fear that it is now too late to effectively plant crops. Threatened supplies will be bullish for wheat prices and could give DBA some fuel to move forward.

Meanwhile, the BHP Billiton (BHP) – Potash of Saskatchewan (POT) saga continues to drag on.

Late last week, the Australian miner got FTC approval for its bid, bringing it one step closer to acquiring the Canadian fertilizer firm. The company will still need to face POT shareholders, which will likely prove a big hurdle.

iShares Gold Trust (IAU)
Gold and other precious metals remain in vogue as investors seek out protection against the volatility currently plaguing the global economy.

It seems as though nothing can stop gold’s ascension. Last week, the yellow metal broke through all-time highs once again, this time flirting with the $1,300 level.

Strength from gold can be seen helping other precious metals higher. Silver, as tracked by the iShares Silver Trust (SLV) has powered to 30-year highs while ETFS Physical Palladium Shares (PALL) powered higher as well. PALL will be a fund to watch in light of auto and truck sales numbers which will be released at the end of this week.

iShares MSCI Brazil Index Fund (EWZ)
The Brazil ETF will be exciting to watch this week as investors digest the total effect of multi-billion dollar stock offering of its top holding, Petroleo Brasileiro (PBR) . The massive state-owned oil company commands the largest position among EWZ’s index, representing over 16% of the fund’s total portfolio.

With economic turmoil continuing to threaten Europe and the U.S., and concerns regarding the strength of China’s growth picture, Latin American nations such as Brazil, Chile and Mexico remain attractive regions of the globe for international-focused investors seeking alternative destinations.

iShares Russell 2000 Index Fund (IWM)
Last week, Vanguard continued its assault on BlackRock ’s (BLK) iShares line of ETFs with the launch of a suite of funds designed to track variations of the Russell indexes.

As with the company’s S&P-based products, Vanguard hopes to drive cost-conscious investors into their products by slashing their expense ratios. iShares’ IWM currently carries a 0.20% expense ratio while Vanguard’s Vanguard Russell 2000 Index ETF (VTWO) carries a 0.15% expense ratio.

Thanks to low interest rates and the recent uptick in M&A activity, small-cap companies such as those tracked by IWM and VTWO have become an attractive investing destination. It will be interesting to see how VTWO performs during its first full week of trading next week.

Disclaimer

Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next.

Here are three of his blogs from the past week:

Two ETFs for the Upcoming Holidays
Published 9/20/2010 10:56 a.m. EDT
As investors squeeze in one more summer round of golf or focus on the upcoming November elections, it’s important to look further into 2010 and remember that the holidays are already approaching fast.

Most years, I’ve found that investors wait too long to gain exposure to firms that will benefit from holiday shopping. I’d suggest adding one of the two following ETFs to your portfolio before the holiday shopping season begins in earnest:

First Trust DJ Internet Index(FDN)

In recent blogs I’ve been recommending FDN as a way for smart investors to play retail and the growing abundance of gadgets designed to connect users with the Internet.

It makes sense, then, that as holidays like Christmas and Hanukkah approach, a play on these gadgets will be more important than ever. As stockings are stuffed with the new, lower-priced Amazon (AMZN) Kindles, and as Apple (AAPL) iPads are wrapped and placed beneath trees, FDN will move even higher.

FDN’s focus goes beyond top holdings like Amazon and eBay (EBAY) where holiday shoppers can find multiple items in one place. FDN’s top components also include Priceline.com (PCLN) and Expedia (EXPE) , firms that should benefit as U.S. consumers begin to solidify holiday travel plans.

PowerShares QQQ ETF(QQQQ)

I believe that “gadgets” will be a popular item this holiday season for consumers of all ages. Last night I saw a commercial for the new iPod nano (they seem to find a way to significantly update this music player significantly every year) and used an iPad for the first time. I believe that Apple will do very well this holiday season by offering consumers a wide range of products (with a wide range of price points) for people on their holiday shopping lists.

Apple is the top component of QQQQ, soaking up nearly 20% of the fund. While this top-heavy pick might be problematic for investors who completely want to minimize security-specific risk through ETFs and don’t want to obsessively keep an eye on Apple, I believe that QQQQ is a strong medium-term play for the remainder of 2010.

In addition to Apple, QQQQ also offers exposure to Amazon, Mattel (MAT) and Electronic Arts (ERTS) . QQQQ also has the advantage of being one of the most highly-traded funds in the market today, with more than 76.6 million shares crossing the tape on an average trading day.

While you might be holding off on thinking about holiday shopping, you can gain exposure to firms that will benefit before you even get your holiday list together. I believe that consumers will be more resilient then economists predict in the months ahead and that this holiday season will be the “year of the gadget.”

Fertilizer Battle Sows Seeds of Opportunity
Published 9/22/2010 3:11 p.m. EDT
The average American investor probably knows more about fertilizer now than they ever imagined as BHP (BHP) and Potash (POT) can’t seem to stay out of the headlines. In the latest chapter of the BHP/Potash drama, Potash filed a lawsuit today in an attempt to block BHP’s $38.6 billion hostile bid for the company.

As the BHP/Potash saga continues to play out, Sinochem, the state-run parent of the largest fertilizer distributor in China, has hired Deutsche Bank (DB) and Citigroup (C) to advise it on the acquisition of a stake in Potash, according to a report in today’s

While Potash’s latest lawsuit claims that BHP is trying to decrease the value of Potash shares, the acquisition drama and the latest bid from Sinochem is only helping to underscore (and draw attention to) the value of agricultural products like fertilizer. Rapidly growing emerging markets (China is one of the largest global consumers of Potash fertilizer) and a recovering U.S. economy should continue to benefit firms Potash that are in the business of helping agricultural products grow and getting food from the farm to the table.

I continue to be bullish on the Market Vectors Agribusiness ETF (MOO) as a way of gaining exposure to agriculture firms in the month ahead. While Potash soaks up nearly 8% of MOO’s underlying portfolio, the fund also includes a wide range of global ag firms such as Deere (DE) , Wilmar International , Monsanto (MON) and Mosaic (MOS) .

Taking a long-term view, I believe that the BHP/Potash drama will prove to be a positive for the agribusiness sector as investors and banks discuss and debate the value of these firms. MOO is the perfect vehicle through which to play this slice of the economy.

Pimco Unveils Two More ETFs
Published 9/21/2010 2:31 p.m. EDT
Bond giant Pimco introduced two new ETFs yesterday that might sound familiar to investors. While the debut of the Pimco Build America Bond Strategy Fund , which will trade under the symbol BABZ, and the Pimco Investment Grade Corporate Bond Index Fund , which will trade under CORP, may not be earth-shattering, it is certainly noteworthy, as BABZ brings something different to the table.

Pimco may have been late to join the ETF industry, the phrase “better late than never” certainly applies. Thus far, Pimco’s 1-5 Year US TIPS Index ETF (STPZ) and Enhanced Short Maturity Fund (MINT) have proven to be the most popular of the bunch.

Will CORP and BABZ be a hit with investors? CORP certainly faces some challenges when it comes to competition. This passively indexed ETF is up against the mammoth iShares iBoxx $ Investment Grade Corporate Bond Fund (LQD) , which has nearly $14.5 billion in total net assets, 130 million shares outstanding and an average daily trading volume of more than a million shares.

Why introduce a new corporate debt ETF when LQD is such a strong presence? My guess is that Pimco would like to be a one-stop shop for investors who are looking to gain exposure to fixed income. Adding a corporate debt option helps to flesh out its lineup. When it comes to corporate debt ETFs, however, I’d stick with LQD until CORP really proves that it can attract investor attention.

BABZ is not the first exchange-traded product designed to track Build America Bonds (the Invesco PowerShares Build America Bond Portfolio (BAB) and SPDR Nuveen Barclays Capital Build America Bond ETF (BABS) beat Pimco to the punch), but it is the first ETF to do so with an actively managed strategy.

While the introduction of actively managed ETFs usually makes me cringe (see ” Why Active ETFs Fail, Part 1 “), I believe that if anyone can successfully pull off an actively managed ETF line it is Pimco. In a post titled ” Why Active ETFs Fail, Part 2 ” I detailed how Pimco is different from the rest of the herd since it is known for its bond expertise. Pimco has an “angle” when it comes to bond products — that’s what the firm specializes in — and I believe investors will buy active Pimco ETFs because of the firm’s reputation.

Active management isn’t a bad idea when it comes to a Build America Bond ETF. Since Build America Bonds cover such a broad range of territory and diverse range of projects, investors may feel more comfortable knowing their assets are being monitored and managed by a Pimco bond expert.

Here’s a prediction: CORP will have a tough time attracting investors while BABZ will become popular with longer-term investors over time. If you’re interested in either fund, I’d first wait for the Pimco duo to attract liquidity (keep an eye on the pace of trading volume) before jumping in.

Disclaimer

Winners

iShares MSCI Thailand Investable Market Index Fund (THD) 5.6%
The Thai markets performed particularly well this week, continuing along an upward trajectory they have stuck to since mid-May.

THD and other emerging- and developed-market ETFs have become increasingly popular destinations recently as investors have sought shelter from the economic storms that continue to plague developed regions. I expect this trend to continue into the foreseeable future.

Other nations that saw strength this week included Israel and Brazil. Investors can track these countries using the iShares MSCI Israel Capped Investable Market Index Fund (EIS) and iShares MSCI Brazil Index Fund (EWZ) , respectively.

Strength from both emerging markets and the developed regions of the globe helped improve investors’ views of the global economic recovery. Improving sentiment is boding well for base metals such as copper and aluminum, which are used extensively in construction and infrastructure development.

DBB could run into turmoil in the future if storms gather. However, this week the skies were clear.

ETFS Physical Palladium Shares (PALL) 3.4%
Precious metals scored gains along with base metals this week. Gold and silver continued their assaults higher, locking in new all-time highs and 30-year highs, respectively. Meanwhile, industry-linked palladium trudged higher thanks to improving investor sentiment.

Looking to the coming week, palladium may be an interesting metal to keep an eye on as investors prepare for auto and truck sales numbers. Palladium is used extensively in the production of catalytic converters and will, therefore, benefit if numbers are strong.

Losers

ProShares UltraShort 20+ Year Treasury Bond ETF (TBT) -3.8%
TBT saw a nice jump on Friday as investors took the broad market strength as an opportunity to pile into riskier assets. However, it was not enough to undo the damage of the previous four days.

Long term bonds remain attractive as investors seek out opportunities to benefit from questionable market conditions. iShares Barclays 20+ Year Treasury Bond Fund (TLT) will likely remain popular.

iPath S&P 500 VIX Short Term Futures ETN (VXX) -2.8%
This VIX-based ETN saw a string of wins at the start of the week as investors remained cautious about the global economy. These gains, however, were wiped out on Friday, leading VXX to place among the week’s biggest losers.

Even though volatility persists in today’s market, VXX has staged a dramatic downfall, testing brand new all-time lows. I would advise investors to steer clear of this fund.

iShares Cohen & Steers Realty Majors Index Fund (ICF) -1.1%
Housing data this week benefited homebuilder ETFs such as iShares Dow Jones U.S. Home Construction Index Fund (ITB) and SPDR S&P Homebuilders ETF (XHB) . The same could not be said, however, for REIT-focused ETFs such as ICF.

Real estate continues to be a mixed bag. I have reservations about residential housing because of the continued supply glut that is weighing on prices. However, REITs and commercial real estate appear more promising. Despite its losses this week, I would advise risk-tolerant, long-term investors looking for a taste of real estate to opt for ICF over ITB.

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

iShares MSCI Spain Index Fund (EWP) 4%
The Spain ETF is leading a pack of Europe-focused funds to strong gains today. Funds such as EWP and iShares MSCI Italy Index Fund (EWI) found room to run after learning that durable-goods orders in August fell less than expected.

I continue to advise investors to exhibit caution when seeking out investing opportunity in Europe. Rather than playing debt-laden nations such as Spain and Italy, a fund such as iShares MSCI Germany Index Fund (EWG) may be a more reliable play.

Market Vectors Indonesia ETF (IDX) 4%
The U.S. and Europe are not the only regions of the globe finding strength as we head into the close of the week. In Asia, Indonesia and India are also powering higher, helping lift IDX and WisdomTree India Earnings ETF (EPI) to nice gains.

Emerging markets such as India and Indonesia remain attractive as investors seek out alternatives to the developed world.

iShares S&P North American Technology-Semiconductors Index Fund (IGW) 3.9%
Semiconductor companies are jumping today amidst the broad strength across U.S. markets. Altera (ALTR) , Analog Devices (ADI) and Micron Technologies (MU) are seeing particularly strong movement on Friday, jumping over 4% in late morning trading.

Tech remains a strong and exciting region of the markets to watch as smartphones, iPads and Kindles become more engrained into our everyday lives.

Losers

iPath S&P 500 VIX Short Term Futures ETN (VXX) -4.9%
Today’s broad market strength is wreaking havoc on the VIX, causing ETNs designed to track the fear-based index to take a shot across the bow. Today’s dip easily erased yesterday’s gains, preparing the fund to revisit all-time lows.

Despite the persistent volatility in today’s market, investors should continue to avoid VXX and other funds designed to track the VIX.

United States Natural Gas Fund (UNG) -2.9%
Natural gas prices are slumping today, causing UNG to tumble back to levels seen at the start of the week. While this futures-based play on natural gas is getting hit hard, the equity based play I typically turn to, First Trust ISE Revere Natural Gas Index ETF (FCG) is powering higher along with the broad market, jumping 2.5%.

iShares Barclays 20+ Year Treasury Bond Fund (TLT) -1.2%
With all three major U.S. indices heading higher today, investors are abandoning the protection of long-term U.S. government debt in favor of riskier assets. In response to this flight to risk, ProShares UltraShort 20+ Year Treasury Bond ETF is pocketing strong gains, jumping over 2.5% heading into the early afternoon.

Disclaimer

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

iShares MSCI Brazil Index Fund (EWZ) 1.9%
Investors continue to turn to emerging markets as a way to avoid the economic turmoil facing developed nations. On Thursday, Brazil’s markets saw a nice lift thanks in large part to top holding, Petroleo Brasileiro (PBR) , which is up nearly 5%. The state run oil giant is currently preparing a massive stock offering which will certainly be interesting to watch in the days ahead.

SPDR S&P Semiconductors ETF (XSD) 1.4%
After tumbling along with the rest of the tech sector yesterday, the semiconductor industry is heading higher, helping XSD erase a good portion of those losses.

Companies leading this fund higher today include Amtel (AML) and Maxim Integrated Products (MXIM) , which were each up over 2% in late morning trading.

United States Natural Gas Fund (UNG) 1.1%
It’s Thursday and once again natural gas investors are turning to the Energy Information Administration to get a feel for how the storage picture looks for this popular fuel. Today, prices are heading higher after the agency found that stockpiles grew by 73 billion cubic feet last week. This is lower than the 78 bcf that was predicted by analysts.

SPDR KBW Regional Banking ETF (KRE) 0.5%
The regional banks are another sector managing to recover some ground after a steep drop-off yesterday. In recent weeks the fund has continued along in a sideways fashion, struggling to break through its 50-day moving average.

Financials will likely remain a risky region of the market as companies prepare strategies to cope with sweeping financial regulation.

Losers

iShares Dow Jones U.S. Real Estate Index Fund (IYR) -2.2%
This morning’s less-than-optimistic initial jobless claims report did little to calm investors’ jitters regarding the strength of the global economic recovery. In response to these concerns, real estate players got knocked, leading IYR lower despite seeing an increase in existing home sales.

While still dangerous, there are some regions of the real estate market which could be beneficial for risk tolerant investors.

iShares MSCI Sweden Index Fund (EWD) -1.9%
The Swedish ETF is just one of many Europe-focused funds that are treading along in negative territory today. Pressuring this region on Thursday are concerns regarding the region’s manufacturing and service industries which weakened in September.

Europe remains a tricky corner of the world to navigate, however. There are some nations that hold more promise than others. Be sure to check out my video on this topic by clicking here .

iShares Dow Jones U.S. Utilities Index Fund (IDU) -1.4%

The utilities sector is getting hit particularly hard amidst today’s choppy trading session. IDU has had a nice run throughout this summer, bouncing along its 50-day moving average.

I continue to see defensive slices of the market such as utilities and gold as attractive for long-term investors looking for ways to combat against market volatility.

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