Natural Resource Companies, Commodities Boost ETFs | ETF Trends

The major index exchange traded funds (ETFs) ended with gains on Monday, as energy and natural-resource companies rebounded along with commodities after last week’s rout.

Bank stocks were a lagging sector in Monday’s higher market as weakness in Citigroup (NYSE: C) after a reverse stock split dropped a banking exchange traded fund close to a key test. Citi shares were down more than 2% on Monday. The banking giant is the second-largest holding at over 7% of SPDR KBW Bank ETF (NYSEArca: KBE), the largest sector fund by assets with about $1.7 billion. [Citigroup Hits Bank ETF as Traders Eye 200-Day Average]

A new exchange traded note (ETN) issued by UBS tracks business development companies, giving investors more choice in the private-equity category. E-TRACS Linked to the Wells Fargo Business Development Company Index ETN (NYSEArca: BDCS) follows a relatively new index launched by the bank. Top holdings in the tracking index include Ares Capital Corp., American Capital Ltd. and Apollo Investment Corp. [New ETN Invests in Business Development Companies]

A rally in Rosetta Resources (NasdaqGS: ROSE) on Monday boosted exchange traded funds that invest in energy exploration and production stocks after the company was out with quarterly results. Rosetta after Friday’s closing bell said its first-quarter net income rose from the year-ago period. The quarterly results “spoke to the company’s continued drilling success in the Eagle Ford Shale resulting in the company increasing its production guidance,” said analysts at BMO Capital Markets in a report. [Rosetta Energizes Exploration and Production ETFs]