Some ETF Sectors’ Losses Are Others’ Gains

As the dollar declines to record lows, other exchange traded fund (ETF) sectors benefit. International currency ETFs get a boost from our weakened dollar as well as fixed-income ETFs. Here’s why:

If you haven’t heard, it’s "earnings" season. Favorites, such as Google (GOOG), Microsoft (MSFT) and Caterpillar (CAT) gave disappointing results. With these big players failing to meet expectations, a declining dollar and housing woes, investors are looking to safe-haven investments, such as bonds. As more money flows into bonds, their prices increase, but their yields decline. Now the 10-year Treasury yield is below 5% for the first time in more than a month, according to CNNMoney.com.

Here’s a look at how a few of the fixed-income ETFs are performing:

iShares Lehman 20+Year Treasury Bond Fund (TLT) - up 2.2% for the week
iShares Lehman 7-10 Year Treasury Bond Fund (IEF) - up 1.6% for the week 
iShares Lehman U.S. TIPS Bond Fund (TIP) – up 1.2% for the week