I know it’s not year end or even month end, but I was just randomly looking at the ETF sector and was quite surprised to see which ETF currently has the best year-to-date return on US markets. You probably could never guess and no it’s not a leveraged ETF. There are a few that are doing quite well but I would expect leveraged ETF’s to not own the top 10 at year end as volatility eats into their returns over time.
Without further wait, here are the Top 10 2010 ETF’s ranked by return:
#10 – Market Vectors – Indonesia Index ETF (IDX) +20,77%
As discussed in our post about Single Country ETF’s, Indonesia has been by far the top performing ETF in the past year or so and even more. The country’s strong economy certainly was a major part.
#9 – iShares MSCI Thailand Index Fund (THD) +22,23%
We have written a bit about REIT ETF’s this year and having a non-leveraged REIT ETF in the top 10 is one good reason why for now the world economy continues its recovery
#7 – Internet Infrastructure HOLDRs Trust (IIH) +24,52%
This is one of the more surprising results although this ETF is not very diversified. In fact, VeriSign (VRSN) and Akamai Technologies (AKAM) represent over 90% of the weight in this 8 stock ETF, one of the main characteristics of “holdrs ETF’s” which do not rebalance over time
#6 – Direxion Daily 10-Year Treasury Bull 3X (TYD) +28,94%
This is the first of 4 leveraged ETF’s to make it on this list as treasuries have continued to gain popularity in this uncertain economic outlook
#5 – ProShares Ultra Real Estate (URE) +29,02%
Not a huge surprise to see a leveraged real estate ETF in this list given the fact that REZ, a non leveraged ETF returned 22,82%.
#4- B2B Internet HOLDRs Trust (BHH) +33,37%
This ETF is even more concentrated than IIH as there are only 2 different stocks that compose it, Ariba Inc (ARBA) and Internet Capital Group Inc (ICGE). Needless to say that the ETF return is very volatile!
#3 – Direxion Daily Real Estate Bull 3x Shares (DRN) +37,32%
Another leveraged ETF near the top of the list, and a second real estate one!
#2 – Direxion Daily 30-Year Treasury Bull 3X (TMF) +37,32%
So…4 leveraged ETF’s made the list, two of them are long Real Estate and the other two are long Treasuries. I guess you know what has been doing well so far this year. Hint towards the #1? Maybe… Maybe not!
#1 – Global X/InterBolsa FSTE Colombia 20 ETF (GXG) +37,82%
Wow, honestly I do not remember hearing about this ETF or about Columbia’s markets at all so far this year and yet here this ETF sits, on top of over 1000 other ETF’s as the undisputed king. What had you guessed? Don’t tell me it was GXG, there is no way I will believe you! Now, I must say, the lead is very slim and it might not hold on to the top position for very long…but I just felt like I needed to write about this! Let me know your thoughts!