December's Best And Worst Performing ETFs

By Investopedia Staff | January 03, 2011 AAA

On a day-to-day basis, most industries/sectors tend not to have dramatic price movements. However, material news/information that is fundamental to an industry/sector's business does get released periodically. This type of news has the potential to move a tracking exchange traded fund (ETF) by several percentage points (in either direction).
But even if an ETF has already moved, it might still warrant a look. After good news, an industry/sector may increase in value, but this momentum can often continue on for more upside. Likewise, bad news often knocks down an ETF's price more than is warranted, causing it to sell at bargain levels until the price moves back up.

Check out which ETFs made the biggest moves in December. By comparison, the S&P 500 was up +5.19% and the DJIA was up +6.53% over the same period. (For related reading, see How Now, Dow? What Moves The DJIA?)

IN PICTURES: 5 Tips To Reading The Balance Sheet

December's Best-Performing ETFs

Company %Change
ProShares Ultra KBW Regional Banking (NYSE:KRU) +38.17%
Direxion Daily Financial Bull 3x Shares (NYSE:FAS) +30.10%
First Trust ISE Global Copper Index (Nasdaq:CU) +18.07%
SPDR KBW Regional Banking(NYSE:KRE) +17.44%
SPDR KBW Bank (NYSE:KBE) +16.39%

December's Worst-Performing ETFs

Company %Change
Direxion Daily Financial Bear 3x Shares (NYSE:FAZ) -24.76%
Direxion Daily Small Cap Bear 3x Shares (NYSE:TZA) -21.55%
ProShares UltraShort Financials(NYSE:SKF) -18.08%
ProShares UltraShort DJ-UBS Crude Oil (NYSE:SCO) -15.81%
ProShares UltraShort Telecommunications (NYSE:TLL)
-14.25%

Bottom Line

It appears that financials were hot in December. It will be interesting to see what will be performing the best in January!

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