The iShares S&P Latin America ETF rose 38% in 2006. Economists remark the growth will remain steady after such a large expansion and with lower commodity prices the reason for a slight slowdown. The leading sector is industrial materials, followed by telecommunication and energy. Top holdings are Companhia Vale; Petrolio Brasileiro;and Cemex. ILF is up 4.7% for 2007.
WisdomTree International Financial Sector (DRF)
This ETF consists of global banks in developed countries, other than the U.S., that are enjoying benefits of continued growth in foreign countries. Institutional holders include Goldman Sachs and Merrill Lynch. Top holdings are HSBC Holdings PLC at 6.37% and Royal Bank of Scotland Group with 3.38%. This ETF is up 3.3% for the year, it was launched in October 2006.
ProShares Ultra QQQ (QLD)
This leveraged ETF specializes in the Nasdaq 100 Index. The aggressive long strategy does impose some intense risk, but when short-term trades are implemented, results can be rewarding. The reason short-term is ideal is the cost of maintaining a leveraged position is an important consideration.
Technology stocks have led the latest market recovery, which is outlined in the increased beta in this ETF. ProShares Ultra QQQ grabs twice (200%) the daily performance of the Nasdaq 100 Index. The Nasdaq 100 is loaded with tech stocks and with these as the best performers during this recovery, this fund is on the top of the list. Since the low on March 5th, Nasdaq 100 is up 5%. QLD is up 10% during the same time period.
For full disclosure, some of Tom Lydon’s clients own ILF.