Below are the 20 hottest ETFs (excluding leveraged funds) at the end of August, based on the 6 month performance. Data excludes leveraged ETFs and the data source is FINVIZ.com. The theme? Financials, unlike last month which featured China as a staple. A link is available on the right hand side of Scott's Investments with this data updated monthly.
Please note that with anything I write I'm not recommending the purchase of any particular security. This is especially true here - there is no trading strategy I am advocating with this list. However, it is helpful in determining where market trends and momentum exist. For one potential strategy utilized by portfolio123.com and backtested by Fidelity, investors who purchased the top performing ETFs based on 60 day returns did quite well (click here to read the full results). For more detailed momentum strategies, visit my blog or pick up a copy of Mebane Faber's The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets. Now, the list:
| Ticker | Company | Performance (Quarter) | Half Year | Year | 200-Day SMA | Price |
| RZV | Rydex S&P SmallCap 600 Pure Value | 25.70% | 198.68% | 4.57% | 56.40% | 31.6 |
| IDX | Market Vectors Indonesia ETF | 17.76% | 150.85% | 43.44% | 52.98 | |
| KOL | Market Vectors Coal ETF | 8.89% | 142.92% | -39.11% | 48.37% | 27.45 |
| PGF | PowerShares Financial Preferred | 7.18% | 142.53% | -12.24% | 25.37% | 14.77 |
| RWW | RevenueShares Financials Sector | 23.21% | 139.23% | 40.74% | 28.33 | |
| TUR | iShares MSCI Turkey Invest Mkt Index | 32.85% | 138.12% | -4.14% | 59.86% | 48.41 |
| RPV | Rydex S&P 500 Pure Value | 19.64% | 132.33% | -10.98% | 42.08% | 21.56 |
| RFV | Rydex S&P Midcap 400 Pure Value | 23.46% | 131.49% | -11.43% | 43.72% | 25.58 |
| KIE | SPDR KBW Insurance | 23.59% | 125.72% | -17.08% | 42.04% | 35.1 |
| RYF | Rydex S&P Equal Weight Financials | 18.10% | 122.91% | -26.67% | 36.48% | 22.38 |
| PKOL | PowerShares Global Coal | 4.03% | 119.84% | 42.68% | 22.69 | |
| IXG | iShares S&P Global Financials | 18.53% | 119.17% | -20.49% | 38.01% | 45.74 |
| DRF | WisdomTree International Financial | 18.25% | 118.38% | -14.92% | 41.01% | 15.68 |
| PFF | iShares S&P U.S. Preferred Stock Index | 9.39% | 118.10% | 1.17% | 28.22% | 34.7 |
| CUT | Claymore/Beacon Global Timber Index | 10.03% | 116.77% | -7.94% | 39.17% | 16.63 |
| IPF | SPDR S&P International Financial Sector | 17.00% | 115.16% | -10.61% | 39.43% | 20.72 |
| KBE | SPDR KBW Bank | 29.43% | 114.10% | -26.19% | 32.61% | 23.53 |
| PSP | PowerShares Listed Private Equity | 17.98% | 113.83% | -49.68% | 27.62% | 8.66 |
| INP | iPath MSCI India Index ETN | 1.44% | 113.70% | -3.31% | 39.16% | 52.89 |
| XLF | Financial Select Sector SPDR | 21.49% | 113.66% | -28.61% | 33.73% | 14.7 |
No disclosures

