February's Best And Worst ETFs

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The month of February put the S&P 500 back into positive territory for the year after a dismal 2015 start. The subsequent 5.5 percent gain was the best for the index since October 2011. The majority of sector ETFs closed in the green; however, there were a few that really struggled. Some of the best and worst of the month are listed below.

First Trust Dow Jones Internet Index ETF

The
First Trust DJ Internet Index Fund (ETF)FDN
consists of 42 Internet-related companies that generate at least 50 percent of their sales/revenue from the Internet.
The top individual holdings include:
  • Amazon.com, Inc. AMZN making up 8.2 percent
  • Facebook Inc FB with a 7.8 percent holding
  • Priceline Group Inc PCLN coming in at 5.4 percent
FDN is up 4 percent over the last 12 months, up 6 percent over the last six months and up 10 percent in the month of February. The ETF has an expense ratio of 0.57 percent.

iShares U.S. Home Construction ETF

The
iShares Dow Jones US Home Const. (ETF)ITB
is made up of 37 U.S. companies that are in some way involved with the construction of residential homes.
The top-weighted sectors in the ETF are household durables at 70 percent and building products at 13 percent.
The top individual holdings include:
  • D.R. Horton, Inc. DHI with a 10.9 percent holding
  • Lennar Corporation LEN(NYSE: LEN-B) making up 10.8 percent
  • PulteGroup, Inc. PHM at 9.3 percent
Over the last 12 months ITB is up 6 percent and 5 percent over the last six months. The ETF was one of the best performers in February, up 9 percent. ITB has an expense ratio of 0.43 percent.
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iShares U.S. Pharmaceuticals ETF

The
iShares Dow Jones US Pharm Indx (ETF)IHE
consists of 39 pharmaceutical companies listed in the U.S.
The top individual holdings include:
  • Johnson & Johnson JNJ at 7.7 percent
  • Pfizer Inc. PFE making up 7.6 percent
  • Merck & Co., Inc. MRK coming in at 6.5 percent
IHE is up 29 percent over the last 12 months and 23 percent over the last six months. Through the month of February, the ETF has rallied 9 percent. The ETF has an expense ratio of 0.43 percent.

Related Link: Dan Nathan Sees Unusual Options Activity In PowerShares QQQ Trust, Series 1 (ETF)

Highlighted below are the worst performing ETFs through February.

Utilities Select Sector SPDR Fund

The
Utilities SPDR (ETF)XLU
follows 32 companies across five sub-sectors in the utilities industry.
Electrical utilities at 57 percent and multi-utilities at 40 percent make up the majority of the portfolio.
The top individual holdings include:
  • Duke Energy Corp DUK at 9.1 percent
  • NextEra Energy Inc NEE coming in at 8.1 percent
  • Dominion Resources, Inc. D totaling 7.5 percent.
XLU is up 10 percent over the last 12 months and up 3 percent over the last six. The ETF struggled through February, however, down 6 percent. XLU has an expense ratio of 0.15 percent.

Related Link: Dennis Gartman Is A Buyer Of iShares FTSE/Xinhua China 25 Index (ETF)

iShares Cohen & Steers REIT ETF

The
iShares Cohen & Steers Realty Maj. (ETF)ICF
is made up of 30 of the largest U.S. real estate companies.
The top holdings include:
  • Simon Property Group Inc SPG with a 7.9 percent holding
  • Public Storage PSA making up 7 percent
  • Equity Residential EQR at 6.8 percent
ICF is up 22 percent over the last 12 months and up 11 percent on the last six months. The interest-rate sensitive ETF was down 4 percent in February. ICF has an expense ratio of 0.35 percent.
Keep in mind that one month does not make a market, but it is important to note that the two biggest sector ETF losers tend to underperform when interest rates are on the rise.
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