Top Four ETFs from Last Week - LVL, TUR, IPF, ERX

Includes: ERX, IPF, LVL, TUR
by: Everyday Finance

Each week, I like to publish the past week's hottest ETFs to share some new trends and niche ETFs out there and give investors some new investing/diversification ideas. For this week, energy, financials and emerging markets continued to rally. Of course, the hot list this week is comprised of 2X and 3X daily return ETFs (see this full Leveraged ETF Ticker List for all of them - long and short), but I also like to include some straight non-leveraged momentum plays as well, given the drawbacks of holding leveraged ETFs for a long period of time (these are trades, not investments).

ERX -Direxion Daily Energy Bull 3X - Up 8% - This ETF seeks to return 300% of the daily performance of the Russell 1000 Energy Index. With oil prices hitting $74 this week and breaching 2009 highs, if the trend continues, ERX could serve as a strong leveraged hedge for another runup in oil and of course, gas prices. If the upcoming hurricane season is not as benign as anticipated or if the global economy continues to pick up steam, an onward march for oil is certainly feasible. However, given the longer term loss in value in leveraged ETFs I pointed out earlier, there are several lower risk/lower cost options out there to hedge energy prices for the retail investor/consumer.

IPF - SPDR S&P International Financial Sector - Up 8% - I was intrigued by this ETF and it hasn't been mentioned here before - it is comprised of Financials, but ex-US only. With US Financials rallying since the March lows, this ETF has rocketed up even faster, and while it isn't leveraged, given the international holdings with a higher Beta than US stocks, expect it to behave like one, minus the long term deterioration in share value due to daily resetting though. For the year, IPF is up 42% vs. 16% for XLF (US Financials ETF).

TUR - iShares MSCI Turkey Index Fund - Up 7% -While Turkey took it on the chin in 2008, shares of this emerging economy have skyrocketed this year, up 84% YTD vs. 14% for the S&P500. Since the March lows that people have been using as a barometer, where US stocks are up 52% from the trough, TUR is up 158%. As noted previously, international banking ETFs have been strong this year and Turkey has a very high proportion of public companies in the sector. A cut in the country's benchmark borrowing rate helped propel shares for the week.

LVL - Claymore/S&P Global Dividend Opp - Up 7% - This is another interesting ETF in that it sports a substantial yield at 7.4% and it has also outperformed the S&P500 on a capital appreciation basis (note the international holdings which have bounced back even quicker). Its holdings are diversified - from Energy and Banking to Pharma and Financials, internationally. The share price return for the year is 40% vs. 14% for the S&P. Since it's an international ETF, it tracks roughly with EEM, the MSCI Emerging Markets ETF, but with a juicy yield to boot. While this is one option, check out some of these other high yield investment options that employ various strategies and investment classes.

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