There Are ETFs You Can Use To Hide From The Bear
By Tom Lydon on September 12, 2008 | More Posts By Tom Lydon | Author's Website
The markets are ugly, and many exchange traded funds (ETFs) are reflecting that. But as we always say, even as some areas are down, there are other areas that are performing well. You just have to take the time to look.
Jim Wiandt for Index Universe gets started with some ETFs that have so far stood up to the bear. Among them:
- iShares Biotechnology (IBB): up 2.5% year-to-date; 2.4% above its trend line; up 15.4% in the last six months
- iShares Dow Jones Transportation (IYT): up 8.8% year-to-date; 0.8% below its trend line; up 9.1% in the last six months
- HealthShares Cardio Devices (HHE): up 12.7% year-to-date; 9.4% above its trend line; up 27.1% in the last six months

One should note that HHF is among those slated for closing by HealthShares on Sept. 19. Four others are going to remain open, however.
A number of other funds we track are performing well against the bear, as well:
- Vanguard Consumer Staples (VDC): down 0.3% year-to-date; 3% above its trend line; up 4.5% in the last six months
- Consumer Staples Select Sector SPDR (XLP): up 0.9% year-to-date; 4.1% above its trend line; up 5.6% in the last six months
- Retail HOLDRs (RTH): up 5.6% year-to-date; 4.7% above its trend line; up 11.5% in the last six months
- SPDR S&P Retail (XRT): down 0.1% year-to-date; 2.2% above its trend line; up 9.6% in the last six months

- KBW Regional Banks (KRE): down 5.7% year-to-date; 3.4% above its trend line; up 1.7% in the last six months
- PowerShares DB US Dollar Index Bullish (UUP):up 4.3% year-to-date; 6.4% above its trend line; up 10% in the last six months

Bonds are attractive to investors in troubled times, too, as they look for the relative safety offered by government debt and even municipal bonds.
For full disclosure, some of Tom Lydon’s clients own shares of IBB, XLP and UUP.
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