The Top 5 ETFs of August

All News:

• Platinum and Palladium ETFs are Long-Term Bets
• Nasdaq ETF Near 200-Day Average as Apple, Cisco Weigh
• Bank ETFs Hit Again on Economy, Capital Levels

Volatility and uncertainty in the markets have driven investors to safer bets in exchange traded funds (ETFs). Take a look at the top five ETFs for August and you’ll see a trend emerge…

Treasury Bonds. Yields on Treasury bonds are sinking faster than a lead balloon. The yield on the 10-year has dropped to 2.58%. The 2-year yield is 0.50%, nearly a record low. But that’s not stopping investors from taking them on as a form of protection. Bond dealers on Wall Street project that the median year-end forecast for the 10-year T-note will be 2.88%. [Treasury, Gold ETFs Soar After Real Estate News.]

Recently, Federal Reserve Chairman Ben Bernanke stated that the economy is facing “unusually uncertain” prospects, which may keep inflation and interest rates suppressed for a while. Long-term bonds rose quickly after bond traders were betting on long-date issues doing better than short-term bonds in a low-growth and low-inflation environment. Long-term bond ETFs may be a good play on the diminishing short-term yields. Bond prices rise when interest rates fall, and the impact is magnified in long-term bonds. [View the August ETF Performance Report.]

• PIMCO 25+ Year Zero Coupon U.S. Treasury (NYSEArca: ZROZ): up 12.6% in August
• Vanguard Extended Duration Treasury (NYSEArca: EDV): up 11.4% in August
• iShares Barclays 20+ Year Treasury Bond ETF (NYSEArca: TLT): up 7.4% in August

Gold Miners. Gold producers are reporting huge profits, driven by the large year-over-year jump in the price of bullion. Goldcorp. (NYSE: GG) said that revenue climbed to $844 million in the second quarter as cash flow rose to $382 million. Newmont Mining (NYSE: NEM) reported that sales improved 34%. The higher gold prices seen in past weeks has helped boost Canadian mining companies, as well. [Gold Miner ETFs Riding High After Earnings.]

• Market Vectors Gold Miners ETF (NYSEArca: GDX): up 10.1% in August
• Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ): up 12.1% in August

Max Chen contributed to this article.