Best/Worst Weekly ETF Returns: DXJ Rises

December 28, 2012

In a QE-addled Land of the Rising Sun, a hedged ETF like 'DXJ' looks like a king.

The $1.10 billion WisdomTree Japan Hedged Equity ETF (NYSEArca: DXJ) was one of the best-performing funds in the past week, gaining 3.3 percent, as Japan shows it is willing to use some muscle in the form of monetary easing to deal with a stagnant economy.

DXJ's performance is particularly impressive given that the Dow Jones industrial average actually slipped 1.6 percent in the same period, bleeding some 215 points in the week. What's more, the fund's price action came accompanied by net inflows of some $200 million.

Behind DXJ's performance is an improving outlook for Japan, as the country's recently elected Prime Minister Shinzo Abe pushes forward an economic stimulus plan designed to pump money into the economy and clear the country's way out of its fourth recession since 2000 and decades of deflation.

That stance has already caused the yen to weaken—the currency slipped to a two-year low against the U.S. dollar this week—benefiting local exporters and the local equities market.

That's where DXJ comes in. For U.S. investors who own Japanese equities, a stronger dollar hurts returns, which would explain why DXJ—a Japanese stock portfolio that hedges the currency exposure—has been resonating with investors.

"Investors have been burned time and time again betting on a low in Japanese equities, but the recent developments in Japan and Abe's plans to battle deflation and the strong yen are some of the most aggressive we've seen," IndexUniverse ETF analyst Dennis Hudachek said.

Other country-focused ETFs that ranked high in the past five-day period ended Thursday, Dec. 27, include the Global X FTSE Greece 20 (NYSEArca: GREK), which rallied 3.5 percent, and the Market Vectors China ETF (NYSEArca: PEK), with gains of 3.1 percent.

On the flip side, a pair of silver funds topped the list of worst-performing strategies this past week.

The $9.60 billion iShares Silver Trust (NYSEArca: SLV)—the market's largest silver trust—slipped 5.1 percent amid hefty trading volume of nearly 8 million shares, on average, daily.

The $547 million ETFS Physical Silver ETF (NYSEArca: SIVR) saw losses of 5.1 percent.

Other metals strategies to sprinkle this week's bottom performers' tally included the iPath Dow Jones-UBS Platinum Total Return ETN (NYSEArca: PGM) and the ETFS Physical Platinum ETF (NYSEArca: PPLT), each of which tallied losses of roughly 4 percent.


Top 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
VIXY ProShares VIX Short-Term 11.46% 3,690,695 153.51
VIIX VelocityShares VIX Short Term ETN 11.43% 1,869,357 10.84
VXX iPath S&P 500 VIX Short-Term Futures ETN 11.42% 119,608,299 1,111.89
GREK Global X FTSE Greece 20 3.53% 73,104 23.09
VIIZ VelocityShares VIX Mid Term ETN 3.52% 93,580 5.09
VXZ iPath S&P 500 VIX Mid-Term Futures ETN 3.52% 1,964,385 68.29
VIXM ProShares VIX Mid-term 3.51% 1,854,065 87.59
DXJ WisdomTree Japan Hedged Equity 3.36% 4,718,788 1,099.80
PEK Market Vectors China 3.17% 84,926 28.76
ZROZ PIMCO 25+ Year Zero Coupon U.S. Treasury 2.59% 30,490 102.29

Bottom 10 Weekly Performers, Excluding Leverage/Inverse Funds and <1,000 Shares Traded

Ticker Name Weekly Performance Weekly Volume AUM ($, mm)
SLV iShares Silver Trust -5.18% 39,278,581 9,603.89
SIVR ETFS Physical Silver -5.17% 926,806 547.77
TAN Guggenheim Solar -4.87% 218,443 44.16
NIB iPath Dow Jones-UBS Cocoa Total Return ETN -4.57% 132,222 29.40
CHOC iPath Pure Beta Cocoa ETN -4.33% 19,711 3.05
WITE ETFS Physical WM Basket -4.15% 20,233 37.56
PGM iPath Dow Jones-UBS Platinum Total Return ETN -3.96% 20,230 26.70
PPLT ETFS Physical Platinum -3.83% 165,014 777.03
KWT Market Vectors Solar Energy -3.73% 8,587 10.65
PSCC PowerShares S&P SmallCap Consumer Staples -3.53% 12,007 27.46

Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

Find your next ETF

Reset All