Over a year ago we took a look at the two most popular solar ETFs, Claymore’s Global Solar Energy Index (TAN) and Van Eck’s Market Vectors Solar Energy ETF (KWT). At first glance these two funds look to be quite similar, and in many aspects they are. However, a closer look reveals many of their differences in structure, size, and value.

The first solar energy ETF to hit the market was Claymore’s TAN, which tracks the MAC Global Solar Energy Index. This index has grown from 25 securities a year ago, to 30 today. The market cap size over the past year has drifted lower to small (51%), mid (38%), and large cap (11%) companies. Shortly after the launch of TAN, Van Eck’s KWT hit the market, which tracks the Ardour Solar Energy Index. This index is comprised of 29 securities, up from 27 a year ago, covering small (38%), mid (53%), and large cap (9%) companies. When looking at the top five holdings of the two funds as a percentage of the total fund, TAN’s top five have dropped from 34% to 25%, whereas KWT’s top five has dropped from 47% to 31% of the fund. Also worth noting is MEMC Electronic Materials (WFR) was previously absent from KWT, but is now the fund’s third largest holding.

Yesterday we released our complete list of Exchange Traded Funds for the first quarter ending March 31, 2009. During the first quarter ETF and ETN assets totaled approximately $475 billion, down from the $541 billion at year end 2008, representing a 12% drop in assets. The number of issues also decreased from 845, to 839 during the same period.

Listed below are the ten largest ETFs by net assets, and the change since December 31, 2008. By analyzing the change in asset value, and performance of the fund over the quarter, you can start to see where investors’ money is flowing.

The Claymore/Zacks Sector Rotation ETF (XRO) recently rebalanced the fund’s holdings, on April 2^nd. The ETF is based on the Zacks Sector Rotation Index, which uses a quantitative methodology to overweight sectors with “potentially superior risk-return profiles”. The sector allocation is done on a quarterly basis.

In the most recent rebalancing, there was a shift away from Technology and Computers, and Energy, and new allocations in the Finance and Medical sectors. Allocations have also been also been increased in Retail/Wholesale, and reduced in Business Services, Industrial Products, and Aerospace. Listed below are the current allocations of the fund, and the increase or decrease compared to the last rebalancing that took play on January 5^th.

By Jason Neault

As we predicted, the Direxion 3X bull and bear ETFs have been a huge success, and are now awash in volume daily. Traders love the big daily moves in these funds with the market’s current volatility. Wednesdasy was the launch of six more 3X funds from Direxion, with bull and bear MSCI EAFE, Emerging Markets, and Technology shares. Here is a rundown of the new 3X funds that Direxion has added to their lineup:

By Jason Neault

The biggest name in short and leveraged funds has released a new group of ETFs, with the promise of more to come. Having wide success with their more traditional style and sector leveraged and short funds, ProShares has now launched a series of double long and double short currency funds, covering the Yen and Euro, as well as two natural resource funds, covering the DJ-AIG commodity, and DJ-AIG crude oil indexes. Similar funds from other sponsors are already trading, but I doubt ProShares will have any problems gaining attention with their new ETFs. Here is a rundown of the new funds that ProShares now offers:

Last week was an historic moment in American history as the United States elected its first African American president, but it was also an historic day for the ETF investing enthusiast.

Shortly after the ballots were counted, and America knew who their next commander-in-chief was going to be, Direxion finally launched their newest investment products, a family of 3X Leveraged ETFs. A lineup that includes both bull and bear strategies for the Russell 1000 and 2000 indexes, and the energy and financial sectors, should grab the attention of traders and investors in the coming weeks and months. With volatility at an all time high recently, the daily returns of these funds should both excite, and scare onlookers.

The new Claymore Global Shipping Index ETF (SEA) has been trading for a little over a month now, and a lot has changed since this new fund set sail. The top holdings of the fund are now more concentrated, the prior second largest holding is now the 14th largest, and the energy sector allocation of the fund has gained about a 4% additional weighting. The Global Shipping fund is based on the Delta Global Shipping Index, including companies that derive at least 80% of their revenues from the seaborne transport of goods or the operating and leasing of ships. The minimum market cap for a company to be included in the fund is $250 million, and a 30 day trading volume of $2 million.

SEA is country heavy in Greece (34%), the United States (17%), Bermuda (16%), and the Bahamas (11%).

 by Jason Neault

Global energy demand is on the rise and nations, businesses and individuals are looking more than ever for new renewable, clean sources of energy. This new surge of interest in the clean, renewable energy space has many people looking to the sun, the wind, the ocean, ethanol & bio fuels, and other more obscure technologies. Investors are pouring money into new projects such as wind farms, solar farms, and other breakthrough technologies. Even T. Boone Pickens, a lifetime oil man, is getting behind the revolution.

The new Market Vectors Gulf States Index ETF (MES) launched on July 23rd, the most recent region specific ETF to hit the market. The Gulf States fund is based on the Dow Jones GCC Titans 40 Index, which is comprised of public companies that are headquartered in countries that belong to the Gulf Cooperation Council [GCC] or that generate most of their revenues from countries belonging to the council. In addition to being part of the GCC, companies in the index must have market caps greater than $100 million, a 3-month average daily turnover of $1 million, and trade on recognized stock exchanges. MES is country heavy in Kuwait (52%), the United Arab Emirates (26%), Qatar (15%), and Oman (4%).

The Gulf States Index ETF is the most recent of a slew of Middle East, Africa, and frontier market ETFs to become available. PowerShares recently launched a similar, but more diverse MENA Frontier Countries Portfolio ETF (PMNA) which also has top country exposure in Kuwait, and exposure in Qatar, the United Arab Emirates, and Oman. Other similar ETFs include State Street's Emerging Middle East and Africa Fund (GAF), Market Vectors Africa Index Fund (AFK), and Claymore's Frontier Markets ETF (FRN).

The moment that many investors, and all consumers have been waiting for has finally come, the possibility that oil could finally be topping out. Today the United States Oil ETF (USO) broke its upward trendline that was set back in February.

In order to hold the February trend, USO would have needed to hold the $110 mark. Whether or not this will lead to a significant drop in oil, or a sideways trading range remains to be seen. Either way, the break of this trend puts significant doubt in investors and traders that the rally in oil can continue.

by Jason Neault

The eagerly awaited PowerShares MENA Frontier Countries ETF (PMNA) launched on July 9th, the second frontier ETF to hit the market. Claymore's Frontier Markets ETF (FRN) started trading in June.

by Jason Neault

MacroMarkets new paired oil ETFs launched last week, replacing the previous oil ETFs (UCR and DCR) that were liquidated in June after reaching their termination triggers. Unlike the popular United States Oil (USO), these paired ETFs hold cash instruments and transfer funds between each other, instead of holding oil futures contracts. The paired ETFs will track the price of crude on the NYMEX, and will transfer funds dollar-for-dollar with the price of crude. The securities will use a “reference price” of $100 crude, and the funds NAV at inception is one quarter of the reference price. The funds have a 95 basis point expense, for essentially holding cash.

By Jason Neault

Another quarter has come and gone, the dust has settled, and now its time to see who made our top ten best and worst ETFs year to date. To avoid duplication, we've eliminated the lesser known ETFs that essentially track the same assets as the more popular issues, as well as funds with built in leverage.

The iShares S&P Global Timber and Forestry ETF (WOOD) launched this week, with very light volume of 7,000 shares traded on its opening day. The fund seeks to replicate the performance of the S&P Global Timber and Forestry Index, which Standard and Poors created back in August of 2007.

The index is comprised of roughly 25 of the largest public companies dealing with the management, ownership, or upstream supply chain of forests and timberlands. Many of the companies are REITs, paper product companies, and paper packaging companies.

By Jason Neault

The much anticipated First Trust ISE Global Wind Energy ETF (FAN) launched this week with healthy trading volume and a tight spread. Renewable energy has been a hot topic as of late, especially wind energy because of its low cost, and high efficiency. With the launch of this new fund, investors now have a chance to profit from companies in the wind energy business, as well as companies that will be entering the space.

By Jason Neault

With global energy demand on the rise, nations, businesses and individuals are looking more than ever for new, and more importantly, renewable sources of energy. This new surge of interest in the renewable space has many looking to the mother of all renewable resources, the sun. Now that the world is starting to take solar power seriously, investors are taking a second look at now profitable solar companies and the ETFs that track them.

There is new blood in the ETF universe, and its not commodities or leveraged funds; it is the blood of the new frontier of investing, known as the frontier markets. On Thursday June 12, Claymore launched its Frontier Markets ETF (FRN), which will attempt to track the Bank of New York Mellon New Frontier DR Index [BKNFR]. Here is a brief snippet from Claymore on what comprises the index:

The Frontier Index tracks the performance of depositary receipts in American depositary receipts ("ADR") or global depositary receipts ("GDR") form that trade on the London Stock Exchange ("LSE"), New York Stock Exchange ("NYSE"), American Stock Exchange ("AMEX") and Nasdaq Stock Market ("NASDAQ") of companies from countries that are part of the Frontier Market, as defined by the Index Provider.