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Sizzling Start For These 4 ETFs
With one month of 2011 in the books, the broader equity markets have gotten out of the blocks nicely. The SPDR S&P 500 ETF (NYSE:SPY), an ETF tracking large cap stocks in the United States, has risen 3.8% year-to-date. There have been a number of ETFs that have enjoyed even greater success so far. Here are four ETFs off to a sizzling start in 2011.
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A European Awakening
The iShares MSCI Spain Index (NYSE:EWP) has turned some heads as it has jumped up the charts to the tune of 16.3% since the beginning of the year. Investors in this fund should welcome the fact that Spain's finance minister recently indicated that her country is not in need of any external financial aid. Spain has done a remarkable job of slashing its deficit, but is still saddled with an economy that is suffering from an unemployment rate of 20%.
The top holding of EWP is Banco Santander (NYSE:STD) as it accounts for approximately 20% of the fund's total weight. The bank's strong performance since the inception of the new year has helped drive EWP up the charts. Banco Santander's net interest income has risen 12.4% year-over-year due to improving volumes and better interest rate spreads.
Another ETF that has also been fueled by optimism for pockets of European equities is the iShares MSCI Italy Index (NYSE:EWI). This ETF has surged 13.6% so far this year. Over the next few years, the country's premier is hoping that he can reduce the red tape currently faced by entrepreneurs in Italy and in turn ratchet up GDP growth for the nation's economy.
Power Surge
The semiconductor industry is off to a blazing start so far and in turn the SPDR S&P Semiconductor ETF (NYSE:XSD) has rallied 11.4% year-to-date. Chip stocks have been driven higher as demand from the mobile market has caught fire.
Intel (Nasdaq:INTC), one of the 27 holdings of XSD, has lagged some of the smaller components of this ETF, but it has also been one of the more consistent performers. The company is coming off of a Q4 which demonstrated record revenue and topped analysts' estimates. Intel is performing remarkably well in a choppy consumer market and has enjoyed growth in both its business and server business segments.
One other ETF that has gotten off to an impressive start this year is the Claymore/MAC Global Solar Index (NYSE:TAN). The fund has gained 16.6% since the start of the new calendar year. TAN got a boost last week when a Goldman Sachs research note pointed out that valuations in the sector are at record lows.
The Bottom Line
The ETF world is off to a wild beginning to 2011. Some of the top performers so far this year fell upon some very dark times as recently as last year. Spain, Italy and the solar industry appear to be on the right track as we speak. We will have to check back on some of these ETFs in the coming months to see if they are able to maintain the momentum they have generated in the early weeks of the new year. (For related reading, take a look at How To Reduce Taxes On ETF Gains.)
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IN PICTURES: 5 "New" Rules For Safe Investing
A European Awakening
The iShares MSCI Spain Index (NYSE:EWP) has turned some heads as it has jumped up the charts to the tune of 16.3% since the beginning of the year. Investors in this fund should welcome the fact that Spain's finance minister recently indicated that her country is not in need of any external financial aid. Spain has done a remarkable job of slashing its deficit, but is still saddled with an economy that is suffering from an unemployment rate of 20%.
The top holding of EWP is Banco Santander (NYSE:STD) as it accounts for approximately 20% of the fund's total weight. The bank's strong performance since the inception of the new year has helped drive EWP up the charts. Banco Santander's net interest income has risen 12.4% year-over-year due to improving volumes and better interest rate spreads.
Another ETF that has also been fueled by optimism for pockets of European equities is the iShares MSCI Italy Index (NYSE:EWI). This ETF has surged 13.6% so far this year. Over the next few years, the country's premier is hoping that he can reduce the red tape currently faced by entrepreneurs in Italy and in turn ratchet up GDP growth for the nation's economy.
The semiconductor industry is off to a blazing start so far and in turn the SPDR S&P Semiconductor ETF (NYSE:XSD) has rallied 11.4% year-to-date. Chip stocks have been driven higher as demand from the mobile market has caught fire.
Intel (Nasdaq:INTC), one of the 27 holdings of XSD, has lagged some of the smaller components of this ETF, but it has also been one of the more consistent performers. The company is coming off of a Q4 which demonstrated record revenue and topped analysts' estimates. Intel is performing remarkably well in a choppy consumer market and has enjoyed growth in both its business and server business segments.
One other ETF that has gotten off to an impressive start this year is the Claymore/MAC Global Solar Index (NYSE:TAN). The fund has gained 16.6% since the start of the new calendar year. TAN got a boost last week when a Goldman Sachs research note pointed out that valuations in the sector are at record lows.
The Bottom Line
The ETF world is off to a wild beginning to 2011. Some of the top performers so far this year fell upon some very dark times as recently as last year. Spain, Italy and the solar industry appear to be on the right track as we speak. We will have to check back on some of these ETFs in the coming months to see if they are able to maintain the momentum they have generated in the early weeks of the new year. (For related reading, take a look at How To Reduce Taxes On ETF Gains.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
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