It isn’t all doom and gloom: some exchange traded funds(ETFs) are experiencing a reversal of fortune during these trying economic times.

The performance for the past month of these lucky ETFs are listed:

• ProShares UltraShort FTSE/Xinhua China 25 (FXP), up 33.7% in the last month
• FocusShares ISE Homebuilders Index Fund (SAW) up 30.5% in the last month
• iShares Dow Jones US Home Construction (ITB) up 33.1% in the last month

All three are posting nice numbers after being down by varying degrees. FXP may be seeing the upside because of the idling economy in China. Because short ETFs deliver the inverse performance of an index (or in the case of an ultra short, twice the inverse), they won’t deliver the kind of returns one is hoping for when an index is moving upward.

SAW and ITB are on an upswing possibly from the recent flurry of bargain hunters. In 2007, ITB ended the year down 57.8%, so positive numbers are a refreshing change of pace.

Long-term investors know that real estate will be on a rebound eventually, so they are ready to hang on for the ride. Many analysts feel that once the subprime crisis passes, the real estate ETFs will be ready for a turnaround.

Tags: Asia, China, Emerging Markets, Financial, Homebuilders, Real Estate