The Top 20 ETF Melt Up Candidates For Year End

It’s that time of year for holiday music, colder weather and the odd investing phenomenon known as window dressing to take place. For some reason, some money managers begin to purchase the best performing securities of the year towards the end of the year causing these top performers to melt upward in price. This historic trend, dubbed window dressing, is supposed to occur because money managers know that investors review the holdings in their portfolios at year end and compare them to the best performing securities in the marketplace that year. Presumably money managers want to demonstrate they owned the best performers — even if only for a short time. Thus they “dress” their portfolio before the year end portfolio snapshot (window) takes place. Yes Virginia, we live in an odd investment world…

I thought it would be interesting to take a look at the top 20 ETF/ETN melt up candidates this year. Doing so may provide a way to gauge the melt up affect on ETPs (exchange traded portfolios) and even yield a few investment ideas. After the break, I’ve compiled the latest year to date ETP performance report from Index, which I believe has the cleanest ETP data in the industry. This report includes all ETPs, except leveraged and inverse products, and is sorted by year to date performance. Click through the break to view the performance chart and associated observations… Continue Reading

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Gold and Brett Favre: Outperformed by Upstarts?

The last two years have been eventful for Gold and Brett Favre. The value of Gold careened upward as the economic landscape turned cloudy and investors sought the safety of Gold. Brett Favre joined a loaded Minnesota Vikings team that propelled him to his best statistical (QB rating) season ever, leaving him one win short of the Super Bowl. So, if someone asked you to pick the best performers in each category — Metals and QBs — the last two years who would you pick? The choices are Gold versus Silver and Brett Favre versus new Packer QB Aaron Rodgers? Believe it or not, the upstart has outperformed the more well known standard in both cases. Here’s proof:

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