Weekly ETF Report: These ETFs are Rocking as the Market Rolls over

The U.S. stock market, as well as the European equity market, has done a bearish roll over in the past week and a half, and that’s sent the major averages down about 3% since July 28. The selling last week actually erased the year-to-date gains on the Dow Jones Industrial Average, and the bellwether index now is in negative territory for the year.

European equities also are in the red now for 2014, with the benchmark regional exchange-traded fund (ETF), the iShares Europe (IEV), now breaking down below its 200-day moving average. The chart here shows IEV’s rapid descent since hitting a new 52-week high in early July.

The fall of European equities, as well as the recent downtrend in U.S. markets, might make you think that the bear has invaded the entire globe. Well, if you thought that, then you haven’t been looking far enough to the east.

Take a look at the table below of the top-performing ETFs in July.

Top 10 ETF Winners in July

Ticker Name % Gain
UAE iShares MSCI UAE Capped ETF 15.97
QAT iShares MSCI Qatar CP ETF 13.14
CHIX Global X China Financials 11.85
CHIM Global X China Materials ETF 11.15
CHNA PowerShares China A-Share 10.79
VIXY ProShares VIX Short-Term 10.67
PEK Market Vectors China ETF 10.51
CHXX Emerging Global Shares Index 10.49
ASHS DB Harvest CSI 500 Ch A Sh 10.47
MES Market Vectors Gulf States ETF 10.38

As you can see, the frontier markets of the United Arab Emirates and Qatar were the two top-performing markets. That performance was followed closely by five China sector funds, including a relatively new China A-shares fund. The volatility we witnessed in July helped boost the VIX, and that was reflected in the gains in the ProShares VIX (VIXY).

The July top 10 ETF list clearly shows that frontier markets, emerging markets and China funds are rocking while their domestic and European brethren are rolling over. The outperformance of the Chinese market is of particular interest to readers of my Successful ETF Investing newsletter, as we are currently recommending several China-focused ETFs for inclusion in our model portfolios.

If you’d like to find out how to make your portfolio rock alongside China, then I invite you to check out Successful ETF Investing today.

Rand on Choice

“Every man builds his world in his own image. He has the power to choose, but no power to escape the necessity of choice.”

--Ayn Rand

The novelist/philosopher reminds us here that choice is not an option in life, it’s a requirement. Remember that the next time life confronts you with a difficult or important decision, because the choices you make really do determine your existence.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Weekly ETF Report readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

In case you missed it, I encourage you to read my e-letter column from last week on Eagle Daily Investor about how the Federal Reserve affects gross domestic product. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

All the best,

Doug Fabian

San Francisco MoneyShow, Hilton Union Square Hotel, Aug. 21-23: I’ll be speaking at the San Francisco MoneyShow this August, and I hope to see you there. Other speakers at this year’s event include Dr. Mark Skousen, Rich Karlgaard (publisher, Forbes), Roger Conrad, Elliot Gue and John Ransom. Admission is complimentary to my subscribers, but you must register: For details, call the Money Show at 800-970-4355 and mention priority code 035777.

P.S. My colleagues and I just finished putting together a FREE special report to help investors of all stripes navigate the markets – and profit handsomely – through the rest of 2014.

Click here now to claim your free copy of The Top 12 Stocks You Should Buy Right Now.

Doug Fabian has continued to uphold the reputation of the Successful ETF Investing newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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