Dion Money Management Blog   Money Management for Retirees and Their Families

Dunkin’ Brands (DNKN) , the parent company of Dunkin’ Donuts and Baskin Robbins, debuted today on the Nasdaq under the ticker DNKN. Some analysts thought this debut was too rich, given that shares of the initial public offering were priced at $19, but the stock opened at $25 and is currently up more than 50%.

Investors should also consider that Dunkin’ Brands is owned by a consortium of private-equity firms and is carrying nearly $1.9 billion worth of debt on its books. The offering today raised $423 million for the company.

That said, Dunkin’ Brands is no Internet 2.0 flash in the pan, and I like this company not only because it’s a homegrown Massachusetts success story but because it’s a solid franchise with a lot of growth potential, given its lack of penetration in markets west of the Mississippi.

ETF investors looking to get in on the Dunkin’ Brands action might want to consider a consumer discretionary or small-cap growth fund, although there’s no guarantee that any of the funds that currently hold peer stocks like Starbucks (SBUX) , Chipotle Mexican Grill (CMG) or Panera Bread (PNRA) will add Dunkin’ Donuts when their indices rebalance.

The Consumer Discretionary SPDR (XLY) , for instance, only holds S&P 500 components, and Dunkin’ Brands obviously hasn’t made that cut yet. Small-cap growth funds like the iShares Russell 2000 Growth ETF (IWO) and the Vanguard S&P Small-Cap 600 Growth Fund (VIOG) have similar index restrictions. This isn’t to say, of course, that Dunkin’ Brands won’t one day make its way into a marquee name index; it’s just not going to happen right away.

The PowerShares Dynamic Food & Beverage Portfolio (PBJ) uses a home-grown index that rebalances quarterly, and Dunkin’ Brands appears to fit its investment criteria. The First Trust Small Cap Growth AlphaDEX ETF (FYC) and the PowerShares Fundamental Pure Small Growth Fund (PXSG) also use proprietary indices and are thus more likely to incorporate Dunkin’ Brands into their holdings in the near term.

Disclaimer

With the U.S. debt ceiling drama again taking center stage this week, safe haven asset classes continue to fall into favor with retail and institutional investors.

Gold, in particular, has generated mass appeal as prices ascend through the $1,600 per ounce level, locking in all-time highs.

With this rise, investors may be tempted to dive headlong into physically-backed ETF products like iShares Gold Trust (IAU) or SPDR Gold Shares (GLD) . However, I encourage investors to keep an eye on other gold-related exchange traded products as well.

Gold miners, for instance, have become an interesting corner of the markets to keep an eye on as the defensive precious metal remains in the spotlight. Investors can take aim at the companies responsible for unearthing this yellow metal using funds such as the Market Vectors Gold Miners ETF (GDX) or Market Vectors Junior Gold Miners ETF (GDXJ) (GDXJ).

While they lagged the physical asset during much of the first half of the year, in recent weeks the gold mining industry appears to have found some footing.

Year to date, bullion products like IAU are still handedly beating out GDX. However, the miner-backed GDX managed to gain impressive ground in July, allowing the fund to outpace IAU over the past 30-day period. During this timeframe, GDX was up nearly 15% while IAU jumped less than 5%.

Its performance during July was impressive. However, the party does not appear to be over for gold miners or GDX. In comments made to

While record-breaking gold prices will keep miners buoyed in the coming days, the industry could get an additional boost from this week’s earnings calendar. During the week, investors will gain ample insight into the current state and future outlook for the gold industry when Goldcorp (GG) , Newmont Mining (NEM) and Barrick Gold (ABX) step up to announce their quarterly earnings numbers. GDX will be heavily influenced by the performances from these three firms. GG, NEM, and ABX are the fund’s top three index components and together account for over 35% of its total assets.

Gold miners are showing strength, but this does not mean that investors should abandon exposure to physical gold holdings. On the contrary, I have long viewed bullion-backed products like IAU and GLD as portfolio staples. A product like GDX is best utilized as a tactical compliment to these long-term holdings.

In early June, I encouraged investors to avoid overlooking the gold miners , noting that during the latter half of the year this slice of the gold industry could be in for standout strength. As we have seen in recent weeks, this forecast has begun to show promise. Looking ahead, I encourage investors to keep a close eye on GDX.

This week’s earnings will have a bearing on a number of ETFs. Here are five ETFs to watch.

Market Vectors Gaming ETF (BJK)
Last week, Wynn Resorts (WYNN) reported earnings, providing investors with insight into its performance over the past quarter and outlook for the gaming industry. The numbers were strong, highlighted by double-digit revenue increases at both its Las Vegas- and Macau-based establishments.

The standout performance seemed to be overshadowed, however, by the bold comments by CEO Steve Wynn in the conference call. When discussion turned to the topic of government, Wynn said, “This administration is the greatest wet blanket to business, progress, and job creation in my lifetime.”

Wynn’s strong earnings have set a high bar for the gaming industry and looking ahead, it will be interesting to see how other firms from this corner of the consumer sector hold up. This week, Las Vegas Sands (LVS) and International Gaming Technology (IGT) will be on tap. Both firms can be found among BJK’s top five holdings. Together, they account for over 15% of the fund’s assets.

Materials Select Sector SPDR (XLB)
The materials sector will be a big focus this when DuPont (DD) , Dow Chemical (DOW) , Praxair (PX) , International Paper (IP) and Newmont Mining (NEM) report earnings. Already, earnings season has boded well for XLB components such as Alcoa (AA) and Monsanto (MON) .

Although XLB struggled during much of the closing weeks of the second quarter, it appears to have found some footing heading into the second half of the year. There are still looming macro issues for this growth-oriented industry. However, it will be interesting to see if strong earnings results can push the fund back to previous 2011 highs.

iShares MSCI Israel Capped Investable Market Index Fund (EIS)
This earnings season will play a major role in directing the performance of the Israel ETF. On Wednesday, both Teva Pharmaceuticals (TEVA) and Nice Systems will step up to the plate. Both companies can be found among EIS’ top 10 holdings.

On a number of occasions I have warned investors of the challenges that come with overexposing to top heavy products. EIS is a prime example of such a fund. Although it is designed to provide investors with expansive exposure to the Israeli marketplace, nearly a quarter of its assets are dedicated to TEVA.

EIS should see a nice boost in the event that TEVA beats analyst expectations. However, in order to protect against weakness, any exposure to this fund should be kept small and focused.

iShares S&P Global Energy Sector Index Fund (IXC)
Top global energy companies, including Exxon Mobil (XOM) , Total (TOT) , BP (BP) , Royal Dutch Shell (RDS.A) , and Chevron (CVX) will be on tap for earnings this week.

While there are a slew of ETF products available that allow investors to target the energy sector, ETF investors looking to gain instant exposure to these domestic and international goliaths would be best off using IXC.

It will be important to keep any exposure to this fund contained, however. With regions like the U.S. and EU still struggling to work out their respective debt issues, many remain concerned about the global economic recovery. Since the energy sector performs best during periods of growth, any signs of a slowdown could hinder the fund’s upward action.

iShares Dow Jones U.S. Home Construction Index Fund (ITB)
Although many will have their sights set on earnings action this week, on the economic front, a number of important data points are slated to be released. On Tuesday, for instance, there will be the new home sales report, providing insight into the state of the housing industry and home builders.

ITB has struggled throughout most of 2011 as issues continue to plague the residential real estate industry. Since dipping below its 50-day moving average in late February, this level has proven to be a persistent point of resistance.

On the other hand, real estate investment trusts continue to witness strength. The iShares Cohen & Steers Realty Majors Index Fund (ICF) has seen a nice run higher and is currently testing previous 2011 highs.

Disclaimer

This weekend, I will get the opportunity to rub elbows with the one and only Warren Buffett when I head to Las Vegas to attend a NetJets-sponsored poker tournament.

So far, 2011 has proven to be an interesting and controversial year for Berkshire Hathaway ’s (BRK.A) fractional jet ownership company, and there is a good chance that the Oracle of Omaha will use the event as a chance to ease tensions and restore customer confidence in the firm.

Since Berkshire Hathaway initially acquired NetJets in 1998, the company has been a tricky investment. As Buffett noted in his 2010 Berkshire Hathaway letter to shareholders, “(e)ven though NetJets was consistently a runaway winner with customers, our financial results, since its acquisition in 1998, were a failure.

“Despite its troublesome past, over the past year, the company’s prospects have begun to shift in a new direction. Following a dramatic restructuring, which included replacing the company’s former CEO, Richard Santulli with David Sokol, the firm managed to end 2010 on a strong note. By the close of year, the company boasted $207 million pre tax.

Disclaimer

Heading into the start of 2011, it appeared as though NetJets had finally found its footing and was on track to become another financially successful component of Berkshire Hathaway’s expansive portfolio. However, the company’s triumphs were quickly overshadowed when David Sokol unexpectedly announced his resignation from Berkshire Hathaway.

Almost immediately, controversy began to swirl around Sokol when it was learned that the executive had made some questionable trades leading up to Berkshire Hathaway’s Lubrizol (LZ) acquisition. Following an official investigation, a Berkshire committee found that Sokol’s actions were in violation of the company’s code of ethics.

The negative media storm surrounding Sokol’s trades and resignational has likely reflected poorly on NetJets. However, in the aftermath the firm has taken steps to ensure that it will effectively move beyond this dark period and prepare for strength down the road. This has included placing Jordan Hansell, NetJets’ president, in the vacated CEO spot.

Although it has faced staggering trials, looking ahead, the outlook for NetJets and the corporate jet industry as a whole appears promising. As

NetJets, meanwhile, has continued to expand. At the start of March, it was announced that the firm had placed a multi-billion dollar order with airplane maker Bombardier to purchase up to 120 new crafts. More recently, firm signed a lease with Signature Flight Support that will provide NetJets with access to a private terminal at Palm Beach International Airport.

Berkshire Hathaway has had a storied history with NetJets. Now, with new names at the helm, and the company showing signs of financial strength, it appears as though a new chapter is being written. Fans of both Warren Buffett and the airline industry will want to keep a close watch on this unique corner of the Berkshire Hathaway Empire to see how it fares in the months ahead.

Welcome to Don Dion’s Daily ETF Winners and Losers. Be sure to stop by each day to find out who’s winning and who’s losing when it comes to ETFs.

iPath S&P 500 VIX Short Term Futures ETN (VXX) 3.6%

Although the U.S. markets are seeing gains, the global economic trials continue to weigh on investor confidence. The fear-tracking VXX and iPath S&P 500 VIX Mid Term Futures ETN (VXZ) are in positive territory. Thursday’s gains have pushed VXX above its 50-day moving average for the first time since late March.

Market Vectors Vietnam ETF (VNM) 2.2%

Although it has staged an impressive comeback in recent weeks following its dramatic mid-March downturn, VNM continues to be noticeably volatile. Frontier markets like Vietnam must be approached with caution as we work our way through the current rough patch.

iShares Dow Jones U.S. Home Construction Index Fund (ITB) 1.5%

Homebuilders are witnessing some strength following a positive round of housing-related data points. Despite this action, I urge long-term investors to search elsewhere for real-estate exposure. Although they are lagging ITB today, the iShares Cohen & Steers Realty Majors Index Fund (ICF) and the iShares Dow Jones U.S. Real Estate Index Fund (IYR) will likely behave in a more stable manner over time.

iPath Dow Jones UBS Cotton Subindex Total Return ETN (BAL) -4.0%

The futures-tracking cotton ETN is leading the market lower. Thursday’s losses mark the fund’s fifth consecutive day of declines. This descent has pushed BAL below its 200-day moving average. The last time the fund traded below this level was mid-July 2010.

United States Natural Gas Fund (UNG) -3.5%

Interestingly, although the weekly storage report from the Energy Information Administration noted that stockpiles increased by less than expected, it is doing little to boost natural gas prices. Both UNG and the iPath Dow Jones UBS Natural Gas Subindex Total Return ETN are in negative territory.

The equity-tracking First Trust ISE Revere Natural Gas Index Fund (FCG) is faring better than its futures-backed cousins. The fund was seeing small gains in early afternoon trading.

Market Vectors Gold Miners ETF (GDX) -2.4%

Gold miner ETFs are heading south, leading a diverse pack of precious metal-related ETFs to losses. Interestingly, although producers are lagging, physically-backed gold funds like iShares Gold Trust (IAU) are generally unchanged.

Although they have run into headwinds, I feel that the gold mining industry may be a market region to keep an eye on in the near future. For more on this topic, be sure to check out this morning’s piece. It can be accessed by clicking here.

Thanks to the advent of ETFs, gaining access to gold has become as simple as ever. By utilizing products such as SPDR Gold Shares (GLD) , iShares Gold Trust (IAU) or ETFS Physical Gold Shares (SGOL) , investors can arm their portfolios with exposure to physical bullion.

However, there are options gold-hungry investors may want to consider including gold miner-backed funds like the Market Vectors Gold Miners ETF (GDX) and Market Vectors Junior Gold Miners ETF (GDXJ) . Unlike GLD and other physically-backed products, GDX and GDXJ do not track a physical stockpile of the yellow metal. Instead, the two funds spread their assets across a wide collection of global gold producers.

Of these two funds, GDX stands out as the strongest and most stable option for conservative, long-term focused investors. Top holdings include Barrick Gold (ABX) , Goldcorp (GG) and Newmont Mining (NEM) .

GDX has struggled in recent months, dipping over 13% year to date through June 14. However, as we look ahead to the second half of 2011, this fund could be in for a comeback.

There are a number of benefits to owning gold miners.

For one, the equity exposure gained through holding a miner-focused fund like GDX will be beneficial when the markets eventually get back on track. The companies underlying this fund are primarily dedicated to the production of gold and will therefore benefit as investors clamor for exposure to the resource. However, it is important to note that, like other market sectors, gold miners also do well during times of market optimism.

Secondly, although they have lagged against their physically-backed cousins throughout the metal’s staggering 2011 run up, gold miners have a long history of outperforming bullion during periods in which gold has risen sharply.

Gold miners are also becoming a welcomed destination for income-seeking individuals. This week,

Currently, GDX has a 0.6% yield.

As the global marketplace works its way through this current rough patch, investors are being reminded of the importance of setting aside exposure to market safe havens. Even those who unwaveringly maintain a bullish outlook towards the future can benefit from the protective qualities of dividend-paying equities, bonds and gold. These assets will help to mitigate the effects of sweeping market fear.

Although they have witnessed sub-par performance during the opening months of the year, investors may want to keep a close eye on the gold miners as we move ahead. Used in collaboration with a physically-backed gold fund, products like GDX can provide investors with welcomed relief against economic headwinds.

Disclaimer

As I explained earlier this week, commodities have become difficult to tame as the broad market works its way through this current rough patch. While attempting to target the broad resource spectrum as a whole may be tricky at this time, there are individual segments that are showing promising strength.

Agriculture, for instance, has stood out in recent weeks as crops such as corn and wheat generated headlines. This scenario is boding well for equity-backed ETFs linked to the farming industry.

The veteran Market Vectors Agribusiness ETF (MOO) has enjoyed a welcomed jolt of activity as rising food prices drive investors towards farming-related companies like Mosaic (MOS) , Deere (DE) , and Monsanto (MON) .

According to the May flow data compiled by the National Stock Exchange, MOO topped the list as being the single largest inflow recipient. Over the course of the month the fund gathered $1.4 billion.

Meanwhile, the region’s popularity has also aided younger funds, such as the Global X Fertilizer/Potash ETF (SOIL) .

Fertilizer and potash has become a popular subsector of the farming industry as investors seek ways to benefit as farmers work to boost crop yields. SOIL is designed to hone in on this industry by spreading its assets across 29 related companies around the globe. Top holdings include CF Industries (CF) , Yara International, and Potash of Saskatchewan (POT) .

In a little over three months, Global X has rolled out four ETFs designed to provide investors with access to various segments of the food industry. Launched in late May, SOIL is the third of these products. Others include the Global X Fishing Industry ETF (FISN) , Global X Food ETF (EATX) and the Global X Farming ETF (BARN) .

As I’ve noted on a number of occasions, it is usually not a good idea to dive into brand new products such as these. Rather, I typically encourage investors to wait a few weeks or months to see if a young fund can generate enough volume to be considered a stable.

While FISN, EATX, and BARN are still working to gather steam, SOIL already appears to have gotten off to a rousing start. In the two weeks following the fund’s initial launch, SOIL has enjoyed heavy interest. Already, the fund boasts an average trading volume of over 90,000.

SOIL’s impressive initial action bodes well for the fund as it works towards becoming a major force within the ETF industry. However, there are still plenty of reasons to use caution before jumping in.

For one, the fund’s tight investment focus will likely make it inappropriate for conservative minded investors. Additionally, the fund’s track record is still short. In the weeks ahead, investors should keep a watch on the fund to ensure that interest persists.

Food is in focus and investors are clamoring for exposure to the agriculture industry. This, in turn, is aiding ETFs designed to provide investors with access to components of the farming sector.

Looking ahead, MOO continues to stand out as the strongest option dedicated to this corner of the marketplace. However, with interest piqued, young funds such as SOIL could soon become a force to be reckoned with as well. Risk tolerant investors may want to keep this fund on the radar.

Disclaimer

Welcome to Don Dion’s Daily ETF Winners and Losers. Be sure to stop by each day to fnd out who’s winning and who’s losing when it comes to ETFs.

Global X Norway ETF (NORW) 1.5%

Although crude oil prices are sliding, the energy-heavy Norway ETF is managing to hold onto gains.

NORW continues to stand out for investors looking for European exposure outside of the E.U. Use caution though. The fund has struggled to power through its 50-day moving average since dipping below in early May.

iPath Dow Jones UBS Coffee Subindex Total Return ETN (JO) 1.3%

Coffee prices are getting a jolt at the start of this week, pushing the futures-backed JO to ETF industry leading gains.

The broad soft commodities spectrum is witnessing bipolar action. While JO is heading higher, funds designed to follow sugar, cocoa, and cotton are in trading in negative territory.

Market Vectors India Small Cap ETF (SCIF) 0.9%

2011 has been a rough year for the Indian marketplace as corruption concerns and inflation fears have weighed heavily. Because it tracks a basket of small, volatile companies, the SCIF has been one of the heaviest hit India-tracking funds. The fund appears to have solidified a bottom but I urge investors to continue to exercise caution here.

iShares Silver Trust (SLV) -3.1%

The market’s mixed action is doing little to quell the investor concerns that have developed over the course of its six-week retreat. In response to these jitters, the industry-linked precious metals like silver and palladium are retreating.

Gold is struggling to hold up as well as both bullion- and miner-backed gold ETFs are trading lower.

Global X Uranium ETF (URA) -3.0%

The uranium industry is facing daunting headwinds as Fukushima concerns continue to weigh heavily on investor sentiment. So far, June has been a dismal month for URA. Since its start, the fund has stuck to a steep, downward path.

I urge investors to use extreme caution in the uranium industry. URA is now trading at new 2011 lows and it is unclear when the fund will find footing.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP) -2.6%

Oil prices are taking a hit, pushing many of the oil producers underlying XOP and other producer-tracking ETFs into negative territory.

Natural gas is not faring better. The First Trust ISE Revere Natural Gas Index Fund (FCG) and the futures-backed United States Natural Gas Fund (UNG) are both witnessing losses in early afternoon trading.

Disclaimer

Using ETFs, it is possible to alleviate some of the headaches associated with today’s rocky commodities investing environment.

Up until recently, commodities stood out as a popular destination for many investors as sweeping global market strength helped propel the prices of metals, agricultural products, and energy sources along seemingly uninterrupted upward paths.

Over the past few weeks, however, commodities have stopped moving in unison, calling into question this full-steam-ahead mentality. While some resources such as corn are powering toward record highs, others such as nickel are facing substantial headwinds.

Investors looking to follow suit and take on a malleable approach to commodities investing may want to consider looking at managed futures exchange traded products like the Elements S&P CTI Total Return ETN (LSC) and the WisdomTree Managed Futures Strategy Fund (WDTI) .

Both LSC and WDTI track the performance of futures contracts that are linked to a diverse collection of commodities ranging from gold and silver to live cattle. However, unlike traditional commodities-related ETFs and ETNs, these funds are designed in a way that will allow investors to better navigate uneven scenarios.

Rather than simply going universally long, LSC and WDTI use rules-based strategies to determine whether to go long or short individual index components. This way, the fund can benefit from the strength of outperformers as well as the weakness of underperformers.

At this time, the exposure of these two funds is appropriately representative of the bipolar state of the commodities industry. LSC is currently flat energy, long grains and precious metals, and short industrial metals, livestock, and soft commodities such as cocoa and sugar. WDTI’s split is similar.

WDTI boasts a more expansive portfolio than LSC, however. On top of providing investors with exposure to the commodities spectrum, the fund also sets aside a portion of its portfolio for currencies and Treasuries. Currently, the fund is nearly universally long this category. The Canadian dollar stands out as its only short position.

The more expansive exposure gained by using WisdomTree’s fund comes at a cost. The fund currently carries a 0.95% expense ratio. LSC meanwhile charges investors 0.75% in fees.

Over the past 30-day period, this managed futures approach has paid off. Not only have LSC and WDTI successfully beaten the performance of passive, broad-based commodities futures ETF products like the PowerShares DB Commodities Fund (DBC) , the funds have also outperformed the SPDR S&P 500 ETF (SPY) .

It is crucial to note that, while attractive given the current investing scenario, both LSC and WDTI have struggled in the past to generate interest. Light daily trading volume may make these funds particularly susceptible to liquidity issues. Be sure to keep any exposure small and focused.

As we work our way through this slow, arduous multi-week soft spot, many regions of the marketplace have become increasingly difficult to navigate. For instance, a glaring split has reared its face in the commodities realm. LSC and WDTI are two funds that may help relieve some of this uncertainty.

Disclaimer

Here are five ETFs to watch this week.

Teucrium Corn ETF (CORN)

This futures-based corn ETF took off at the close of last week following the USDA’s decision to slash supply expectations. The fund is currently trading at all-time highs.

Skyrocketing food prices are helping to thrust equity-based agricultural ETFs into the spotlight. As I noted last week, the veteran Market Vectors Agribusiness ETF (MOO) has become wildly sought after. According to the May flow data compiled by the National Stock Exchange, the fund topped the list of inflow gainers.

The popularity has aided fledgling agriculture ETFs as well. Although it has only been available for a few weeks, the Global X Fertilizer/Potash ETF (SOIL) has gotten off to a strong start, with the fund’s average daily trading volume already topping the 100,000 shares.

iShares MSCI All Peru Capped Index Fund (EPU)

The Peru ETF had a roller-coaster performance last week as investors digested the results of the nation’s recent presidential election. Although the fund started off the week with a steep drop, revisiting previous 2011 lows, it spent much of the ensuing days recovering lost ground.

In the next few weeks, it will be interesting to see how politics will affect the performance of Peru’s markets. Miners, which account for a large percentage of EPU’s index, could take a hit in the event that the newly elected president attempts to raise taxes.

SPDR S&P Retail ETF (XRT)

A number of retailers are scheduled to report their quarterly earnings performance this week. The performance and outlooks from companies such as Best Buy (BBY) and Kroger (KR) will provide investors with information regarding the state of the U.S. and global consumer.

This week’s economic calendar boasts a number of consumption-focused data points as well. On Tuesday, the retail sales report for May will be released.

XRT has run into significant headwinds recently as dicey market action weighs on investor outlooks. I urge investors to keep this fund on the radar, however. The consumer’s recovery remains an interesting story to watch.

iShares Dow Jones Select Dividend Index Fund (DVY)

Dividend investing has fallen into favor in recent weeks as investors attempt to defend their portfolios against market turmoil. DVY has proven to be a popular destination for cautious ETF investors. The fund has enjoyed above average trading volumes on six of the past seven trading sessions.

On Thursday, Global X announced the launch of a new product aimed at satisfying investor demand for dividend-paying equities. The Global X SuperDividend ETF (SDIV) has gotten off to an excellent start, with trading volume over 300,000 on its opening day. While investors should continue to hold off until the fund generates a stable following, SDIV could prove to be a force to be reckoned with among dividend ETFs.

SPDR S&P Homebuilder ETF (XHB)

The homebuilder ETFs have had a rough start to June as the outlook for the residential real estate industry remains weak. Since the start of the month, the fund has seen only one day of upward action.

Investors will learn more about the start of the housing market during the middle this week as a deluge of industry-specific reports come through the wires.

XHB will be particularly interest on watch on Thursday when top holding Pier 1 Imports (PIR) reports earnings.

Disclaimer