Tag Archives: CurrencyShares Japanese Yen Trust

Quake Shakes Japan, Nuclear ETFs

Fears over the impact Friday’s earthquake and tsunami will have on Japan’s economy sent the benchmark Nikkei 225 stock average plunging 6.2% in its first day of trading since the 9.0-magnitude quake struck. This led U.S. investors to sell stocks. At Monday’s close, the Dow Jones Industrial Average recovered from its lows, to post a decline of 0.43% to 11993 and the S&P 500 slid 0.54% to 1296.

Here’s a brief look at how ETFs affected by the crisis reacted on Monday The iShares MSCI Japan Index Fund (EWJ) sank 7% to $10.05. The WisdomTree Japan Total Dividend ETF (DXJ) tumbled 7% to $35.620. The Rydex CurrencyShares Japanese Yen Trust (FXY) advanced 0.26% to $120.92.

Meanwhile, the trouble at Japan’s Fukushima Daiichi nuclear complex sent fears rippling through the U.S. nuclear industry. Officials said an explosion occured at the site’s Unit 3 reactor, while the fuel rods at the Unit 2 were fully exposed, causing fears of a nuclear meltdown at the reactor. PowerShares Global Nuclear Energy Portfolio (PKN) plunged 11% to $18.97 and the Market Vectors Uranium + Nuclear Energy ETF (NLR) plummeted 12% to $22.46.

UPDATE: Tuesday 12:09 am. The New York Times has reported the Nikkei index has plunged 13% on worries about the radiation fallout from a potential nuclear disaster. It looks like Tuesday will be a clustercuss.


Discussing Best ETFs on the Radio

I will be discusshing the four ETFs found in this year’s Best List 2010 on the “Financial $pectrum” Show with host Bill Kearney tomorrow, Wednesday, on radio station WKXL-AM in Concord, N.H. The live phone interview will be about 20 minutes at 11:35 a.m.

To hear over the Internet, go to WKXL-AM and click Listen Live.

The best ETFS in the categories of currency, bonds, water and emerging markets are:

CurrencyShares Japanese Yen Trust (FXY)
Three-year annualized return: 12.2%

iShares iBoxx $ Investment Grade Corporate Bond Fund (LQD)
Three-year annualized return: 8.5%

First Trust ISE Water Index Fund (FIW)
Three-year annualized return: -4.4%

WisdomTree Emerging Markets SmallCap Dividend Fund (DGS)
Annualized return since inception: 3.4%