Dion's Monday ETFs Winners and Losers
iPath Dow Jones UBS Natural Gas Subindex Total Return ETN (GAZ) 14.6%
Investors unaware of the impact a premium can have on a fund's performance need only look at the divergence seen from futures-backed exchange traded products today. Whereas the United States Natural Gas Fund (UNG) is dipping to standout losses, the GAZ, which is boasting an 80% premium, is surging higher.
Some may be enticed by these gains, but for long-term investors, the risks of holding this product are great. In the event that the premium is wiped out, the fund will tumble back to its underlying index, sending investors to a loop. Those looking to truly track the performance of natural gas should steer clear.
PowerShares DB Base Metals Fund (DBB) 4.2%
The U.S. marketplace has managed to power higher at the start of this shortened trading week, helping the Dow Jones Industrial Average push through the 13,000 level for the first time since May 2008. A boost of confidence has driven investors back into market-correlated assets like base metals and industry-linked precious metals. The ETFS Physical Palladium Shares (PALL) is up nearly 4% in early afternoon trading.
Market Vectors Vietnam ETF (VNM) 2.1%
The Vietnam ETF continues to push higher, locking in its third consecutive day of gains. The upward action seen at the start of the week has pushed VNM through its 200-day moving average for the first time since this time last year. It will be interesting to see if the fund can stay buoyed above this region.
iShares NASDAQ Biotechnology Index Fund (IBB) -1.7%
Today's downturn is IBB's second in a row. Throughout February, the fund has witnessed three periods of multi-day losses as it struggled to maintain the heights seen during the opening weeks of 2012.
In the coming days, it will be interesting to see where this fund goes next. Given its recent back-and-forth action, investors may want to watch on the sidelines for now.
iShares Cohen & Steers Realty Majors Index Fund (ICF) -1.7%
Pain can be felt across a wide collection of top real estate investment trusts, leading ICF to some notable losses. At the same time that REITs are sliding, the homebuilders are also heading lower. The SPDR S&P Homebuilder ETF is off nearly 1% in early afternoon trading.
Teucrium Corn ETF (CORN) -1.2%
Corn futures prices are taking a hit at the start of the week, pushing CORN and other grains-focused exchange traded products to notable losses. The iPath Dow Jones UBS Grains Subindex Total Return ETN (JJG) is off around 1%.