Market Overview

Best And Worst ETFs Of The Week Amid Crude Oil Collapse

Best And Worst ETFs Of The Week Amid Crude Oil Collapse
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The market lost ground for the third consecutive week as traders hastened to exit stocks and commodities in favor of safe haven assets. The SPDR S&P 500 ETF (NYSE: SPY) experienced a roller coaster of ups and downs that culminated in a decline of nearly 2 percent.

However, the big story of the week was the continued plunge in crude oil futures below $85 per barrel. The United States Oil Fund (NYSE: USO) lost 4 percent this week as wide spread selling left this key commodity in danger of breaching bear market territory.

The following ETFs represent a sample of the best- and worst-performing funds over the last five trading sessions.

BEST: Coffee Prices

For the second week in a row, coffee prices have been giving futures traders a jolt. The iPath Dow Jones-UBS Coffee Subindex Total Return ETN (NYSE: JO) gained nearly 8 percent and is trading near its 2014 highs.

Related Link: REIT ETFs Gain On Interest Rate Tumble

JO tracks an unleveraged basket of coffee futures contracts and charges an expense ratio of 0.75 percent. This ETN has been surging on crop-related data showing constricted supply concerns.

The real test for JO in the weeks ahead will be whether it can break out to new highs or if prices will once again consolidate.

WORST: Natural Gas Stocks

Crude oil and energy stocks weren't the only industry that saw steep declines this week; natural gas stocks also experienced a painful drop.

The First Trust ISE-Revere Natural Gas Index Fund (NYSE: FCG) lost 11 percent during the last five trading sessions. FCG tracks 31 companies engaged in the exploration and production of natural gas. This ETF is now down more than 36 percent from its 2014 highs.

This equal-weighted index includes well-known holdings Chesapeake Energy Corporation and Talisman Energy Inc., which have experienced significant declines over the last two months.

The one hope for natural gas stocks is the looming cold winter months, which typically see an uptick in both commodity and equity prices as heating demand increases.

Posted-In: Sector ETFs Specialty ETFs Commodities Markets ETFs Best of Benzinga


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