The Top 10 ETFs in 2014
A third of the year is already in the books, and 2014 has been a year of surprises so far.
I mean, who would have predicted that long-term Treasury bonds would be so strong this year, with the value of the iShares 20+ Year Treasury Bond ETF (TLT) up more than 11% year to date?
Another big surprise this year is the gains, particularly last month, in both energy and emerging markets. The table below shows the best-performing (non-leveraged) exchange-traded funds (ETFs) in April.
| Ticker | Name | April % Gains |
|---|---|---|
| TUR | ISHARES MSCI TURKEY ETF | 9.31 |
| FCG | FIRST TRUST ISE-REV NAT GAS | 9.18 |
| UNG | US NATURAL GAS FUND LP | 8.72 |
| XOP | SPDR S&P OIL & GAS EXP & PR | 8.05 |
| IPW | SPDR S&P INTL ENERGY SECTOR | 7.99 |
| UNL | UNITED STATES 12 MONTH NATUR | 7.50 |
| PXE | POWERSHARES DYN ENRG EXP PRO | 7.42 |
| FILL | ISHARES MSCI GLOBAL ENERGY P | 7.34 |
| EPU | ISHARES MSCI ALL PERU CAPPED | 7.03 |
| FRAK | MARKET VECTORS OIL & GAS FRACKING | 6.88 |
As you can see, emerging market standout Turkey topped the list of ETF performers, but the rest of the best (save for Peru) were all in the energy space. To be certain, there’s been a pronounced move higher in the energy space, and that’s a trend all investors should be watching closely.
As for the top-performing ETFs year-to-date, we’ve also seen a rotation toward emerging markets, energy and commodities. The table below shows the best of the best through the first four months of the year.
| Ticker | Name | YTD% (as of 4/30) |
|---|---|---|
| EGPT | MARKET VECTORS EGYPT INDEX | 30.89 |
| UNG | US NATURAL GAS FUND LP | 28.32 |
| GGGG | GLOBAL X PURE GOLD MINERS ET | 26.29 |
| GLDX | GLOBAL X GOLD EXPLORERS ETF | 25.09 |
| MES | MARKET VECTORS GULF STATES | 22.40 |
| EIDO | ISHARES MSCI INDONESIA ETF | 21.19 |
| DBA | POWERSHARES DB AGRICULTURE F | 20.70 |
| IDXJ | MARKET VECTORS INDONESIA SMA | 20.67 |
| USAG | UNITED STATES AGRICULTURE IN | 20.37 |
| SILJ | PUREFUNDS ISE JUNIOR SIL-ETF | 19.54 |
I doubt that very many market mavens thought that Egypt would be the best-performing sector in the market through the first third of the year, but that’s what’s happened. I also doubt that many had selected gold mining stocks as potential big winners.
The results here show that the most unloved sectors of years past often are the ones ripe and ready for new money flows and for outstanding performance. The key for you as an investor is to identify these trends, and then allocate accordingly.
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
