Nine Best ETFs in 2011

Among the year's nine top-performing ETFs, three were in the utilities sector, two in health care, two in financials, one in consumers staples, and one in consumer discretionary

There were 192 U.S.-traded ETFs/ETNs with a positive total return through the year-to-date at the end of October, including about nine ETFs that were up more than 10%, according to equity analyst Tom Graves, CFA, of S&P Capital IQ in a report released Friday. In comparison, 402 had a negative total return, 186 of which were down more than 10%.

Also though the year-to-date, S&P Capital IQ's MarketScope Advisor (MSA) database shows 163 domestic ETFs/ETNs with positive total returns, while 155 were in negative territory. In comparison, there were only 20 international or global ETFs/ETNS with a total return above 0%, while 234 had a negative return, according to Graves.

Furthermore, among the 275 ETFs/ETNs with a 12-month yield of more than 2%, only about 28% of them had a positive total return, the analyst says.

Among the year's nine top-performing ETFs, three were in the utilities sector, two in health care, two in financials, one in consumers staples, and one in consumer discretionary.

The largest of the top-ranked ETFs (based on market capitalization), was the Utilities Select Sector SPDR Fund (XLU), at $4.6 billion, and the smallest was PowerShares Active U.S. Real Estate Fund (PSR), at $18 million.

Four of the top-performing ETFs had a 12-month trailing yield of at least 3.4%, but two of them had a yield of less than 2%, according to S&P Capital IQ.

Based on S&P Capital IQ Equity Research's proprietary ETF rankings, two of 2011's top performing equity ETFs -- XLU and iShares Dow Jones U.S. Pharmaceuticals Index Fund (IHE) -- currently have an overall ranking of Overweight.

S&P Capital IQ explains that year to date, these two ETFs had positive total returns of 15% and 11% respectively.

The seven other top-performing ETFs in the first 10 months of 2011 include the following ETFs with a Marketweight ranking are: Vanguard Utilities Sector Index Fund (VPU); iShares Dow Jones US Utilities Sector Index Fund (IDU); iShares FTSE NAREIT Residential Plus Capped Index Fund (REZ); PowerShares Dynamic Pharmaceuticals Portfolio (PJP); and First Trust Consumer Staples AlphaDex Fund (FXG).

The two Underweights are PowerShares Dynamic Retail Portfolio (PMR) and PSR.

Reprints Discuss this story
We welcome your thoughts. Please allow time for your contribution to be approved and posted. Thank you.

Most Recent Videos

Video Library ››