February 13, 2008

Investing in Exchange Traded Funds (ETFs):

DIAMONDs, SPDRs, Qubes, HOLDRs, VIPERs, iShares

They are simple and valuable investments with strange sounding names! Exchange Traded Funds (ETFs) essentially are mutual funds that trade like a stock. They are baskets of securities held in a trust (just like mutual funds) and can be traded as a listed security on a stock exchange (just like a stock).

Differences between mutual funds and ETFs

  • Securities held in most mutual funds are actively managed. Securities held in ETFs track an index established by a stock exchange. Selection of securities is predetermined (i.e. passively managed). Accordingly, the cost of managing Exchange Traded Funds and their corresponding Management Expense Ratios (MERs) are significantly less than mutual funds.
  • Mutual funds are priced once a day based on their net asset value at the end of the trading day. ETFs are priced in the market during the trading day based on their tracking value of the index that they represent.
  • Mutual funds hold securities that are actively bought and sold during the year by managers who are using their expertise and experience to improve portfolio returns. ETFs, by definition, hold securities that are infrequently changed, and therefore tend to have lower capital gains distributions at the end of the year.

Differences between listed securities and ETFs

  • Buying a diversified portfolio of individual securities, that approximately represents the market, can be time consuming and expensive. In contrast, buying an ETF, that holds a diversified portfolio of securities representing the market, can be completed easily in one trade.
  • Transaction costs normally are lower for ETFs than for individual securities (particularly on broadly based ETFs) because bid/ask spreads for ETFs frequently are less.

Why the strange sounding names?

The names frequently are an acronym for an Exchange Traded Fund:

  • SPDRs (also called SPDRS): Standard & Poor’s 500 index Deposit Receipts
  • DIAMONDS:Dow Jones Industrial Average tracking unit.
  • VIPERS:Vanguard Index Participation Equity Receipts
  • Qubes: based on symbol for the NASDAQ 100 tracking units: QQQQ.
  • HOLDRs: Holding Company Depositary Receipts

An Example using SPDRs

SPDRs are an Exchange Traded Fund that tracks the S&P 500 Index. SPDRs trade approximately at 1/10th the value of the Index. If the S&P 500 Index is trading at 1400, SPDRs (Symbol: SPY) will trade at almost exactly $140 per unit. The cost of 100 units will be $140 x 100 = $14,000 U.S.. If the S&P 500 Index rises to 1500, the price of SPDRs will increase to $150. The value of 100 units will improve to $15,000.

Types of Indices Tracked by ETFs

Six types are available:

  • ETFs on broadly based indices (e.g. S&P 500 Index, Dow Jones Industrial Average, S&P/TSX 60 Index)
  • ETFs on sector indices (e.g. health care, high tech, financial services)
  • ETFs on style indices (e.g. growth, value, small cap, medium cap)
  • ETFs on indices of countries or regions outside of North America (e.g. the Euro 350 Index, the EAFE Index)
  • ETFs on bond indices.
  • ETFs on commodities and currencies
  • Leveraged, inverse and inverse leveraged ETFs

Currently, 392U.S. equity based ETFs, 33U.S.bond based ETFs, 103 international, 18commodity-based ETFs, 8 currency based ETFs, 52 Canadian equity based ETFs and 6 Canadian bond based ETFs trade on North American exchanges. A complete list is provided at the end to this report.

Reasons to own ETFs

  • Easy to understand and to follow. The media frequently comments on events that influence the performance of broadly based indices such as the S&P 500 Index, the Dow Jones Industrial Average and the S&P/TSX 60 Index. Their comments also apply to performance of ETFs that track broadly based indices.
  • A convenient way to build a diversified portfolio. Each ETF owns a basket of securities. For example, iUnits in the S&P/TSX 60 Index holds a diversified portfolio of Canada’s top 60 companies. Risks associated with ownership of individual securities in the basket are reduced.
  • A low Management Expense Ratio (MER) relative to actively managed investments. The average MER on a broadly based Canadian or U.S. mutual fund actively managed by a Canadian based investment firm is 2.50%. In contrast, the MER on iUnits on the S&P/TSX 60 Index is only 0.17% and the MER on SPDRs is only 0.10%. A list of MERs on ETFs is provided at the end of this report.
  • More tax efficient than actively managed investments. Capital gains distributions at year-end from U.S. traded ETFs currently are nil due to their legal structure. Capital gains distributions at year-end from Canadian traded ETFs are low and frequently are nil. The reason: changes in indices are infrequent and, therefore, chances of realizing a capital gain for tax purposes due to index changes are low. In contrast, a portfolio of actively managed investments frequently is adjusted and is more likely to distribute taxable capital gains at the end of the year.
  • Easily bought and sold (particularly ETFs on broadly based indices). SPDRs were the most actively traded equity security in the world in 2007 based on value of trading. Qubes were the most actively traded security in the world in 2007 based on the number of shares that traded. Volumes in both ETFs rose in 2007. Average daily volume in i60s, Canada’s most actively traded ETF was approximately 2.3 million per day in 2007. In addition, bid/ask spreads on broadly based ETFs frequently are $0.10 per unit or less.
  • Better performers relative to most actively managed investments. History shows that most actively managed investments have been unable to exceed the performance of their benchmark index over an extended period of time. On January 1st 2008, Globe Investor released the annual performance of Canada’s top 180 mutual funds by assets. Once again, most of Canada’s mutual funds devoted to investments in Canadian equities underperformed the TSX Composite Index. The TSX Composite Index recorded a 9.3% total return in 2007. The list of 180 top funds was reduced to 108 to exclude fixed income funds, international funds and funds with unknown performance. Only 11 funds (including iShares on the TSX 60 Index) outperformed their benchmark in 2007.

The cost of buying and selling ETFs

Investors can choose between buying and selling ETFs in a transaction-based account or in a fee-based account. Costs in a transaction-based account will be the regular commission charged by your broker for completing an equity trade. Costs in a fee-based account in most cases will be zero for the transaction, but a fee based on the value of the portfolio will be assessed periodically. Investors, who make most of their own investment decisions, probably will prefer a transaction-based account. Investors, who rely on their broker to offer investment advice on a continuing basis, may prefer to complete transactions through a fee-based account. A fee of 1.5% per year for an equity account valued between $100,000 and $500,000 is approximately “the going rate” by Canadian investment dealers.

Other features of ETFs

The following information was obtained from publicly available web sites:

  • ETFs listed on the Toronto Exchange are 100% eligible as Canadian content in tax deferred accounts (e.g. RRSPs and RRIFs).
  • Most ETFs pay a quarterly dividend.
  • Dividends paid by ETFs with Canadian equity content listed on the Toronto Exchange are eligible for the Dividend Tax Credit.
  • Trading hours correspond with the regular trading hours of the Toronto Exchange and U.S. exchanges (normally 9:30 AM – 4:00 PM Eastern time).
  • All ETFs have redemption features. Holders with large positions in ETFs are allowed to exchange their units for shares that underlie the unit. Net result: units consistently trade at or near their net asset value.
  • Many ETFs have listed options and Long term Equity APpreciation Securities (LEAPS). A list of optionable ETFs is provided at the end of this report.
  • Dividend re-investment (DRIP) programs on broadly based ETFs are available through selected brokers.
  • ETFs are marginable.
  • ETFs can be shorted.
  • ETFs are sponsored by well-known financial institutions.

Portfolio Strategies

Core and satellite investing

One of the more popular strategies! Investors place a large portion (i.e. the core) of their equity portfolio into Exchange Traded Funds. This portion acts as the anchor for the portfolio, ensuring that portfolio performance will approximate stock market returns. Size of the core depends upon the amount of stock market risk that the investor is willing to assume. Investors, who are satisfied with realization of returns that approximate “the market”, will place a larger portion of their portfolio into ETFs (say 40%-80%). Investors, who are willing to take more risk in order to improve chances of “outperforming the market”, will place a smaller portion into ETFs. The remainder of the portfolio is invested into “special situations” with the potential to outperform the market. Choices include attractive equities, specialty mutual funds, sector ETFs, hedge funds, etc.

Portfolio Rebalancing

ETF positions can be adjusted easily when equity, fixed income and cash weights in a portfolio need to be rebalanced due to changing market conditions. With one trade in an ETF of a broadly based index, equity positions can be increased or reduced.

Sector Investing

Investors can choose, when timely, to over weight sectors that have better potential. Investors can choose between six Canadian sector ETFs and over 60 U.S. sector ETFs.

Seasonal Trend Investing

North American, European and Japanese equity markets tend to be strongest from the end of October to the end of March /April. Investors can take advantage by owning broadly based ETFs during the period of seasonal strength and by switching into treasury bills during the remainder of the year.

Sectors in equity marketsalso have seasonality and can be traded accordingly. See the Special Report section at for background.

Risks

By definition, an investor holding an Exchange Traded Fund will never outperform the market. The investor will track the market (less a small MER).

Some ETFs have a high percent of their portfolio invested either in a sector or an individual security. Concentrations can influence the volatility and performance of the ETF.

A small number of ETFs hold a basket of securities that are known to be volatile. Most of these hold high tech securities with a history of significant price swings.

Monitoring ETFs through the Internet

The following web sites are useful for investors who are looking for more information about ETFs:

Sites for a quick overview and description of ETFs that trade on U.S. exchanges:

ETF content and weights:

IShares U.S.information:

iShares Canadian information:

Select sector SPDRs information:

StreetTracks ETF information:

Merrill Lynch HOLDRs information:

Vanguard ETF information:

PowerShares ETF information:

FT Portfolios ETF information:

Proshares ETF information:

Rydex Funds ETF information:

Wisdomtree ETF information:

Claymore Investments ETF information:

XShares ETF information:

ETF information:

Index providers:

S&P indices:

Dow Jones indices:

MSCI International indices:

Russell indices:

Wilshire indices:

FTSE group indices:

Index universe:

ETF Information and opinion sources

Exchange Traded Fund List

Equity Index Units Traded in Canada

Name SymbolMER Opt. Volume

(%) Daily

3 months

Jan. 2008

(000)

IShares S&P/TSX 60 IndexXIU0.17yes4,000

IShares Composite Cdn. Eq Capped IndexXIC0.25no 50

IShares S&P 500 C$ Index FundXSP0.25no 150

IShares International C$Index FundXIN0.50no 150

iSharesDividend IndexXDV0.50no 50

IShares S&P/TSX Canadian Capped Energy IndexXEG0.55yes 350

ISharesS&P/TSX Canadian Capped Financial IndexXFN0.55yes 250

ISharesS&P/TSX Canadian Capped Gold IndexXGD0.55yes 500

iShares Income Trust Sector IndexXTR0.55no 100

IShares S&P/TSX Canadian Capped Info.Tech.XIT0.55yes 80

iSharesMaterials Sector IndexXMA0.55yes 150

IShares S&P/TSX Canadian Capped Midcap IndexXMD0.55no 40

ISharesS&P/TSX Canadian Capped REIT IndexXRE0.55no 150

iShares Cdn. Value Index FundXCV0.50no 5

iShares Cdn. Growth Index FundXCG0.50no 10

iShares Cdn. Janzi Social Index FundXEN0.50no 4

iShares Cdn. Small Cap Index FundXCS0.55no 10

iShares Cdn. Russell 2000 Index FundXSU0.35no 10

Merrill Lynch CP HOLDRSHCH*no 1

Claymore FTSE RAFI Canadian Index FundCRQ0.65no 15

Claymore Cdn Dividend and Income AchieversCDZ0.60no 5

Claymore U.S. Fundamental Index (C$ hedged)CLU0.65no 10

Claymore Oil Sands sectorCLO0.60no 10

Claymore BRICCBQ0.60no 60

Claymore International FundamentalCIE0.65no 10

Claymore Preferred SharesCPD0.45no 20

Claymore Japan FundamentalCJP0.65no 5

Claymore Global WaterCWW0.60no 10

Claymore Global MiningCMW0.55no 10

Claymore Global Balanced IncomeCBD0.70no 2

Claymore Global Balanced GrowthCBN0.70no 2

Claymore Global AgricultureCOW0.65no N/A

Claymore Global Monthly Yield HogCYH0.65no N/A

Claymore AECO Natural GasGAS0.80no N/A

Claymore Cdn. Financial ServicesCEW0.65no N/A

Horizon BetaPro 60 Bull +HXU1.15no 500

Horizon BetaPro 60 Bear +HXD1.15no 1500

Horizon BetaPro Financial Bull +HFU1.15no 100

Horizon BetaPro Financial Bear +HFD1.15no 50

Horizon BetaPro Energy Bull +HEU1.15no 50

Horizon BetaPro Energy Bear +HED1.15no 50

Horizon BetaPro Gold Bull +HGU1.15no 300

Horizon BetaPro Gold Bear +HGD1.15no 400

Horizon BetaPro Crude Oil Bull+HOU1.15no N/A

Horizon BetaPro Crude Oil Bear +HOD1.15no N/A

Horizon BetaPro Natural Gas Bull+HGU1.15no N/A

Horizon BetaPro Natural Gas Bear +HGD1.15no N/A

Horizon BetaPro Comex Gold Bullion Bull+HBU1.15no N/A

Horizon BetaPro Comex Gold Bullion Bear +HBD1.15no N/A

Horizon BetaPro S&P/TSX Global Mining Bull +HMU1.15no N/A

Horizon BetaPro S&P/TSX Global Mining Bear +HMD1.15no N/A

Equity Index Units Traded in the U.S.

Major Market ETFsSymbolMEROpt. Volume

(%) Daily

3 months

(000)

Broad Market Jan. 2008

Total Stock Market VIPERsVTI0.07yes 469

IShares Russell 3000IWV0.20yes 472

IShares DJ US Total MarketIYY0.20yes 62

IShares S&P 1500ISI0.20 yes 48

Fidelity NASDAQ Composite Tracking StockONEQ0.30yes 32

Extended Market VIPERsVXF0.08yes 65

StreetTRACKS Total MarketTMW0.20yes 25

FTSE RAFI U.S. 1000PRF0.60 yes 210

Dynamic MagniQuantPIQ0.60yes 28

Large-Cap

Diamond Trust Series 1DIA0.18yes 15,761

NASDAQ 100 Index Tracking StockQQQQ0.20yes 174,386

IShares S&P 100OEF0.20yes 1,773

IShares S&P 500IVV0.09yes 2,972

IShares NYSE 100 NY0.20 yes 13

IShares NYSE CompositeNYC0.25yes 20

Standard and Poors Depository ReceiptsSPY0.10yes 215,368

IShares Russell 1000IWB0.15yes 1,045

Rydex S&P EqualweightRSP0.40yes 834

Large Cap VIPERS VV0.07yes 177

Morningstar Large CoreJKD0.20yes 16

StreetTRACKS DJ Wilshire Large CapELR0.20yes 4

First Trust NASDAQ 100 Equal WeightQQEW0.60yes 46

Rydex Russell Top 50XLG0.20yes 50

Dynamic Large CapPJF0.60yes 12

First Trust Large Cap Core AlphaDEXFEX0.70no 4

Vanguard Mega Cap 300MGC0.13no 18

Mid-Cap

IShares S&P MidCap 400IJH0.20yes 539

S&P Midcap 400 Depository ReceiptsMDY0.25yes 5,764

IShares Russell MidcapIWR0.20yes 321

Mid-Cap VIPERS VO0.13yes 150

Morningstar MidCoreJKG0.25yes 12

StreetTRACKS DJ Wilshire Mid CapEMM0.25yes 7

Dynamic Mid-CapPJG0.60yes 11

First Trust Mid Cap Core AlphaDEXFNX0.70no 3

Small Cap

IShares S&P Small Cap 600IJR0.20yes 1,989

IShares Russell 2000IWM0.20yes 95,299

Small-cap VIPERS VB0.10yes 167

Morningstar SmallCoreJKJ0.25yes 20

iShares MicrocapIWC0.60yes 165

StreetTRACKS DJ Wilshire Small CapDSC0.25yes 7

First Trust MicroCapFDM0.60yes 6

Zacks Small CapPZJ0.60yes 32

Zacks Micro CapPZI0.60yes 90

FTSE RAFI Small – Mid PRFZ0.60no 29

FT Dow Jones Select MicrocapFDM0.60yes 6

Dynamic Small CapPJM0.60yes 10

First Trust Small Cap Core AlphaDEXFYX0.70no 5

Style ETFs

Broad Market Growth

IShares Russell 3000 GrowthIWZ0.25yes 127

First Trust GrowthFPX0.60yes 8

Broad Market Value

IShares Russell 3000 ValueIWW0.25yes 89

First Trust Equity IncomeFDL 0.60yes 21

First Trust Multi Cap Growth AlphaDEXFAD0.70no 7

First Trust Multi Cap Value AlphaDEXFAB0.70no 5

Large-Cap Growth

IShares S&P 500/Barra GrowthIVW0.18yes 887

IShares Russell 1000 GrowthIWD0.20yes 2,355

StreetTRACKS DJ Wilshire Large Cap GrowthELG0.20yes 39

Growth VIPERSVUG0.15yes 333

Morningstar Large GrowthJKE0.25yes 76

Dynamic Large GrowthPWB0.60yes 342

Rydex S&P 500 GrowthRPG0.35yes 26

First Trust Large Cap Growth AlphaDEXFTC0.70no 6

Vanguard Mega Cap GrowthMGK0.13no 15

Large-Cap Value

IShares S&P 500/Barra ValueIVE0.18yes 565

IShares Russell 1000 ValueIWD0.20yes 2,355

StreetTRACKS DJ Wilshire Large Cap ValueELV0.20yes 14

Value VIPERSVTV0.15yes 244

Morningstar Large ValueJKF0.25yes 60

Dynamic Large ValuePWV0.60yes 85

Rydex S&P 500 ValueRPV0.35yes 21

FT DB Strategic ValueFDN0.60yes 49

First Trust Large Cap Value AlphaDEXFTA0.70no 3

Vanguard Mega Cap ValueMGV0.13no 48

Mid-Cap Growth

IShares S&P MidCap 400/Barra GrowthIJK0.25yes 166

IShares Russell MidCap GrowthIWP0.25yes 498

Morningstar Mid GrowthJKH0.30yes 36

Dynamic Mid GrowthPWJ0.60yes 236

StreetTRACKS DJ Wilshire Mid Cap GrowthEMG0.25yes 8

Rydex Midcap 400 GrowthRFG0.35yes 13

Mid-Cap Value

IShares S&P MidCap 400/Barra ValueIJJ0.25yes 118

IShares Russell MidCap ValueIWS0.25yes 501

Morningstar Mid ValueJKI0.30yes 13

Dynamic Mid ValuePWP0.60yes 41

StreetTRACKS DJ Wilshire Mid Cap ValueEMV0.25 yes 2

Rydex Midcap 400 ValueRFV0.35yes 12

Small-Cap Growth

IShares S&P SmallCap 600/Barra GrowthIJT0.25yes 177

IShares Russell 2000 GrowthIWO0.25yes 4,855

StreetTRACKS DJ SmallCap GrowthDSG0.25yes 13

Small-Cap Growth VIPERSVBK0.22yes 133

Morningstar Small GrowthJKK0.30yes 22

Dynamic Small GrowthPWT0.60yes 29

Rydex Small Cap GrowthRZG0.35yes 5

Small-Cap Value

IShares S&P SmallCap 600/Barra ValueIJS0.25yes 148

IShares Russell 2000 ValueIWN0.25yes 3,206

StreetTRACKS DJ SmallCap ValueDSV0.25yes 18

Small-Cap Value VIPERSVBR0.22yes 172

Morningstar Small Cap ValueJKL0.30yes 14

Dynamic Small Cap ValuePWY0.60yes 58

Rydex Small Cap ValueRZV0.35yes 15

Sector ETFs

Consumer Discretionary

Consumer Discretionary Select Sector SPDRXLY0.26yes 3,943

IShares DJ US Consumer Cyclical SectorIYC0.48yes 96

Retail HOLDRSRTH0*yes 5,880

Consumer Discretionary VIPERSVCR0.28yes 46

Dynamic Leisure and EntertainmentPEJ0.60yes 34

Dynamic RetailPMR0.60yes 50

Dynamic Hardware and Consumer ElectronicsPHW0.60yes 29

SPDR RetailXRT0.35yes 3,388

Dynamic Consumer DiscretionaryPEZ0.60yes 37

Market Vector Environmental ServicesEVX0.55yes 10

Rydex Equal Weight Consumer DiscretionaryRCD0.50no 42

Consumer Staples

Consumer Staples Select Sector SPDRXLP0.26yes 3,199

IShares DJ US Consumer Non-Cyclical SectorIYK0.48yes 35

Consumer Staples VIPERSVDC0.28yes 56

Dynamic Food and BeveragePBJ0.60yes 34

FTSE RAFI Consumer GoodsPRFG0.60no 1

Dynamic Consumer StaplesPSL0.60yes 6

Rydex Equal Weight Consumer StaplesRHS0.50no 2

First Trust Consumer Staples AlphaDEXFXG0.70yes 1

Energy

Energy Select Sector SPDRXLE0.26yes 21,563

IShares DJ US Energy SectorIYE0.60yes 172

Vanguard Energy VIPERsVDE0.28yes 38

Oil Service HOLDRSOIH0*yes 7,084

Dynamic Energy Exploration and ProductionPXE0.60yes 46

Dynamic Energy SectorPXI0.60yes 10

Dynamic Oil and Gas ServicesPXJ0.60yes 224

iShares DJ Exploration & ProductionIEO0.48no 91

iShares DJ Oil EquipmentIEZ0.48no 520

SPDR Oil and Gas Equipment and ServicesXES0.35yes 67

SPDR Oil and Gas Exploration and ProductionXOP0.35yes 219

FTSE RAFI EnergyPRFE0.60no 7

Rydex Equal Weight EnergyRYE0.50no 9

First Trust Energy AlphaDEXFXN0.70yes 2

First Trust ISE Revere Natural GasFCG0.70yes 20

Market Vector Nuclear EnergyNLR0.65no 82

Financials

Financial Select Sector SPDRXLF0.26yes 91,518

IShares DJ US Financial SectorIYF0.48yes 575

IShares DJ US Financial ServicesIYG0.48yes 270

Regional Bank HOLDRSRKH0*yes 1,007

Financials VIPERSVFH0.28yes 140

StreetTRACKS KBW BankKBE0.35yes 1,688

StreetTRACKS KBW Capital MarketsKCE0.35yes 677

StreetTRACKS KBWInsuranceKIE0.35yes 230

Dynamic InsurancePIC0.60yes 33

iShares DJ Broker DealerIAI0.48yes 1,345

iShares DJ InsuranceIAK0.48no 24

iShares Regional BanksIAT0.48no 77

SPDR Regional BankingKRE0.35yes 2,179

FTSE RAFI FinancialsPRFF0.60no 13

Dynamic BankingPJB0.60yes 77

Dynamic FinancialPFI0.60yes 11

RydexEqual Weight FinancialsRYF0.50yes 5

First Trust Financials AlphaDEXFXO0.70no 1

Health Care

Biotech HOLDRSBBH0*yes 208

IShares NASDAQ Biotech IBB0.48yes 1,301

iShares Biotech SPDRsXBI0.35yes 36

Amex BiotechFBT0.60yes 36

Dynamic Biotech and GenomePBE0.60yes 42

Health Care Select Sector SPDRXLV0.26yes 2,511

IShares DJ US Healthcare SectorIYH0.48yes 71

iShares PharmaceuticalsIHE0.48no 27

iShares Healthcare ProvidersIHF0.48no 73

iShares Medical DevicesIHI0.48no 74

Pharmaceutical HOLDRSPPH0*yes 761

Health Care VIPERSVHT0.28yes 44

Dynamic PharmaceuticalPJP0.60yes 22

SPDR PharmaceuticalXPH0.35yes 5

FTSE RAFI HealthPRFH0.60no 3

Dynamic Healthcare ServicesPTJ0.60yes 44

Dynamic HealthcarePTH0.60yes 29

Rydex Equal Weight Health CareRYH0.50no 13

HealthShares Cardio DevicesHHE0.75no 1

HealthShares DiagnosticsHHD0.75no 29

HealthShares Emerging CancerHHJ0.75yes 5

HealthShares Enabling TechnologyHHV0.75no 6

HealthShares Patient Care ServicesHHB0.75no 3

HealthShares Metabolic-Endocrine DisorderHHM0.75no 1

HealthShares Autoimmune-InflammationHHA0.75no 1

HealthShares CancerHHK0.75no 8

HealthShares CardiologyHRD0.75no 1

HealthShares CompositeHHQ0.75no 3

HealthShares GI/Gender HealthHHU0.75no 1

HealthShares Respiratory/PulmonaryHHR0.75no 3

HealthShares NeuroscienceHHN0.75no 1

HeathShares OphthalmologyHHZ0.75no 1

HealthShares European DrugHRJ0.75no 2

HealthShares Infectious DiseaseHHG0.75no 1

HealthShares Dermatology and Wound CareHRW0.75no 1

First Trust Health Care AlphaDEXFXH0.70no 3

Industrials

Industrial Select Sector SPDRXLI0.26yes 5,451

IShares DJ Transportation AverageIYT0.48yes 660

IShares DJ US Industrial SectorIYJ0.48yes 59

Vanguard Industrials VIPERsVIS0.28yes 37

DynamicBuilding and ConstructionPKB0.60yes 46

iShares Home ConstructionITB0.48no 499

Homebuilder SPDRsXHB0.35yes 4,613

Dynamic Aerospace and DefensePPA0.60yes 164

iShares Aerospace and DefenceIHE0.48no 27

FTSE RAFI IndustrialsPRFN0.60no 19

Dynamic IndustrialsPRN0.60yes 24

Market Vector SteelSLX0.55yes 161