Each week, I like to publish the past week's hottest ETFs to share some new trends and niche ETFs out there and give investors some new investing/diversification ideas. Last week, emerging markets and commodities continued to show strength while the S&P500 ended with week with a respectable gain of 3.2%. I've made sure to include both some leveraged ETFs with their outsized gains (but take note of
leveraged ETF risk of value destruction over time due to daily rebalancing) as well as non-leveraged traditional sector ETFs.
Hot List Leveraged ETFs
EDC - Direxion 3X Emerging Markets - Up 17% - With equities rallying globally and the higher Beta that the emerging market bourses carry, not only did they take it on the chin last year on the way down, but during the recovery, they are rocketing back up at a much faster pace than US equities. EDC is up almost 10X the S&P500 during the 2009 YTD period at 167% vs. 18% for the S&P500.
AGQ - Ultra Silver ProShares - Up 12% - This is a 2X leveraged ETF tracking the return of silver. This one's been a regular on the hot list several times recently, as silver is more volatile than gold, hence, the runups have been even more spectacular. You'll want to check out how silver and other precious metal ETFs are doing in comparison to gold - much better! It's primarily one of many weak
dollar ETF plays, but gold tends to get all the press. If you're only investing in the play, silver and other ETFs may actually do much better for you.
TYH - Direxion Daily Technology Bull 3X Shares - Up 10% - This 3X Tech ETF has been a stalwart member of the hottest ETFs updates, as Tech has outperformed most other sectors in US equities. With productivity through the roof and companies coming out of this recession leaner than ever while remaining employees doing everything they can to
avoid a layoff, what corporations are spending money on however, is technology to further boost productivity and allow them to remain lean on the payroll expense given the uncertainty of the return of the consumer. Year to date, the Nasdaq is up 34% vs. an 18% gain for the S&P500 and this ETF is now up 170% on the year and 320% since the March lows. The top 3 underlying holdings are Apple, Cisco and Google.
TMV - Direxion Daily 30-Year Treasury Bear 3x Shares - Up 8% - This 3x leveraged ETF seeks to actually exploit improving market conditions that result from a flight FROM safety by driving up the yield (and price lower) on 30 year Treasuries.
