Despite a late day sell-off Friday, February was a strong month for U.S. stocks as the S&P 500 bounced back from a glum January to gain 6.7% in the second month of the year.
In the world of exchange traded products, there were some forgettable performances. The worst performing non-leveraged funds over the past month include C-Tracks on Citit Volatility Index ETN (NYSEArca: CVOL) down 13.8%, Global X Nigeria Index ETF (NYSArca: NGE) down 7.6% and VelocityShares Emerging Market DR ETF (NYSEArca: EMDR) down 7.1%. [February ETF Performance Report]
However, there were stellar, jaw-dropping performances as well as several ETFs and ETNs that turned impressive showings in January kept the ball rolling in February. What follows is a list of some of last month’s top performers including a comment and February gains.
Let’s get started with the…
Global X Silvers Miners ETF (NYSEArca: SIL)
February Gain: 16.5%
Comment: Although silver has lagged gold on a year-to-date basis, silver miners have been making admirable efforts to keep pace with their gold-producing rivals. The Global X Silver Miners ETF not only ranks as one of February’s best ETFs, but one of 2014’s top non-leveraged funds with a year-to-date gain of 20.3%. SIL does, however, look poised to give back some gains before it makes another run higher as it lost 6.2% last week.
PureFunds ISE Junior Silver Small Cap Miners/Explorers ETF (NYSEArca: SILJ)
February Gain: 17.8%
Comment: SILJ, the first ETF to explicitly focus on small-cap silver miners, has spent time as this year’s best non-leveraged ETF. Investors have taken notice of SILJ’s out-performance of physical silver ETFs and rival mining funds. The fund started 2014 with just 150,000 shares outstanding, but that number was up to 400,000 as of Feb. 20. [This Silver ETF is Growing Up]
Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ)
February Gain: 16.7%
Comment: Like the other ETFs mentioned here, GDXJ has been among the best through the first two months of 2014, indicating it was not a one-hit wonder in February. Like SIL, GDXJ gave up some of those gains last week, but that may not be a bad thing.
GDXJ “has been pulling back on lighter volume the past two weeks” and around $40 “there is support from the 40-week moving average and uptrend line. The 10-week moving average is catching up quickly and could also provide support, depending on how the action unfolds,” according to Deron Wagner of Morpheus Trading Group.
Global X Gold Explorers ETF (NYSEArca: GLDX)
February Gain: 16.3%
Comment: An obvious theme has developed here. That being 2014 has been kind to precious metals mining ETFs. The very fact that GLDX is anywhere the top 10 confirms this ETF’s rebirth. Last year, GLDX was one of the worst non-leveraged ETFs and was reverse split to prop up its flailing share price. [Last Year’s ETF Laggards Rise in 2014]
Guggenheim Solar ETF (NYSEArca: TAN)
February Gain: 25%
Comment: Last year’s best energy AND non-leveraged ETF of any type is doing it again in 2014. Solar stocks hit a small bump earlier in February, but bounced back. TAN lost 1.2% last Friday, but still managed a weekly gain of 5.1%. TAN is up 77% in the past six months.
iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN (NYSEArca: JO)
February Gain: 32.3%
Comment: JO is the top non-leveraged ETP this year with a gain of almost 62%. Coffee prices have been soaring this year as traders pushed up prices, betting on significant crop damage in Brazil, the world’s largest producer of coffee beans, as dry weather stunts growth in a crucial stage in the beans’ development. [Coffee ETN Gets Hyper as Brazilian Crops Wither]
Don’t forget the iPath Pure Beta Coffee ETN (NYSEArca: CAFE). The ETN with an easy-to-remember ticker gained almost 31% last month.