Tuesday, February 21, 2012

Dion's Monday ETF Winners and Losers

Welcome to Don Dion's "ETF Winners and Losers." Be sure to stop by throughout the week to find out which ETFs are gaining or losing.

Winners

iPath Dow Jones UBS Natural Gas Subindex Total Return ETN(GAZ) 3.2%

A 15.5% premium is heavily impacting the performance of GAZ, causing it to perform out of line with its fellow natural gas futures-tracking ETF, the United States Natural Gas Fund(UNG). While GAZ is sitting solidly in positive territory, UNG, which boasts not premium, is up around 1%.

Premiums are not something to toy with. Steer clear of this product.

First Trust NYSE Arca Biotech ETF (FBT) 2.1%

The biotechnology industry is pushing higher, leading FBT to its fifth consecutive day of gains. Dendreon(DNDN) is leading the way, locking in over 17% gains.

While impressive, investors may want to hold of on jumping in here; given its steep run up, there is a chance that this and other ETFs linked to biotechnology could take a breather in the near future.

SPDR S&P Oil & Gas Exploration & Production ETF(XOP) 1.2%

While the premium-laden futures-backed natural gas ETN is leading the way higher, other corners of the energy sector are gaining ground as well. Producers, for example, are enjoying a bounce, pushing XOP and the PowerShares Dynamic Oil & Gas Services Portfolio(PXJ) to impressive gains.

Solar is strengthening as well. The Guggenheim Solar ETF(TAN) is up around 1%.

Losers

iShares MSCI Indonesia Investable Market Index Fund(EIDO) -2.3%

The U.S. marketplace has started off the first full week of February on a conservative note. With major stock market indices struggling to find gains,! investo rs are showing hesitance towards inherently volatile emerging markets. Asian nations are getting hit particularly hard; EIDO, the iShares MSCI South Korea Index Fund(EWY) and the iShares MSCI Taiwan Index Fund(EWT) are among the biggest decliners.

iShares MSCI South Africa Index Fund(EZA) -2.1%

South Africa's marketplace is taking a shot across the bow as developing nations fall out of favor. Though notable, the fund's losses are not overly discouraging. EZA has enjoyed a strong run up during the start of the year. The fund is sitting at its highest levels since last August.

EZA's ample exposure to precious metal producers is likely doing little to help ease pressure. The Market Vectors Junior Gold Miners ETF(GDXJ) is off around 2%.

iShares MSCI Italy Index Fund(EWI) -1.7%

After a four-day string of gains pushed the fund to its highest levels since early November, the Italy ETF appears to be taking a breather.

In recent weeks investors have enjoyed some encouraging news regarding the European sovereign debt crisis. Be warned, however, this remains a risky region not suitable for conservative investors.

All prices are as of 2:13 PM EST.

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