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ETF VS Other Indexes

Page history last edited by PBworks 12 years, 10 months ago
Given the rather abysmal start to the 2008 trading year, I thought it would be instructive to highlight the total 2007 stock market returns of some of the major indices like the Nasdaq and Dow of course, as well as some niche ETFs and international / emerging markets to give a sense of how they performed during 2007 and whether continued momentum in particular regions/sectors would be attractive for your portfolio in 2008. I will highlight some ETFs you've probably never heard of (for instance, I've been watching MOO to play the grain/food commodity run we've seen as a result of rising corn prices and the weak dollar-up 40% in just a few months!).


First, the U.S. Major Indices:



S&P500 (SPY) 5%

Powershares QQQ Trust (QQQQ) 18%

iShares Russell 3000 (IWV) 4%

Dow Diamonds (DIA) 9%



Next, some ETFs:



Now, for some real niche ETFs that you don't see everyday. Some of the returns are rather surprising (i.e. note the drastic differences between Health Shares Cancer and Emerging Cancer...you really have to know the underlying companies and what you're buying into). Since there are hundred of ETFs these days, I chose some that I thought had rather large gains or losses that might interest you. I expect that given the paltry volume on some of these, you may see some cease to exist after explosive new issues over the past 2 years; but as long as they're available, enjoy!



HealthShares (HS) Cancer (HHK) 15%**

HS Emerging Cancer (HHJ) -35%**

HS Diagnostics (HHD) 26%**

** Note, these HealthShares are only as of March 2007


iShares Energy (IYE) 42%

iShares AeroSpace & Defense (ITA) 28%

iShares Financial (IYF) -21%

iShares Real Estate (IYR) -21%

Market Vectors Steel (XLX) 90%

Market Vectors Gold Miners (GDX) 21%

Market Vectors Global Alt Energy (GEX) 47% *since launch May

Market Vectors Agribusiness MOO 40% *since launch Sep

Powershares Clean Energy (PBW) 60%



Now, International Markets:



iShares Australia (EWA) 28%

iShares Canada (EWC) 33%

iShares Hong Kong (EWH) 37%

iShares Latin America 40 (ILF) 40%

iShares Emerging Markets (EEM) 33%

iShares Malaysia (EWM) 40%

iShares South Africa (EZA) 22%

iShares South Korea (EWY) 35%

Powershares China (PGJ) 57%

Powershares Commodity (DBC) 37%



In the world outside the U.S., I tend to like most of these above given some unique characteristics. Australia, with its natural resource play and strong economy; Malaysia and S. Korea, which sell massively into China - if you feel China's played out, why not invest in the economies that will continue to benefit from its growth? South Africa - the last frontier of emerging markets is Africa in general. Although South Africa is light years ahead of some central regions, it will still benefit from the growth you'll see in the rest of the continent, as there is no ETF for the sub-Saharan regions.


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