Best And Worst ETFs Of April

Among the major soft commodity losers, Teucrium Corn Fund (CORN), Teucrium Wheat ETF (WEAT) and iPath Dow Jones-UBS Grains ETN (JJG) were at the front. U.S. corn supplies hit a 28-year high at the end of March.

WEAT and CORN were off 9% and 8.4% respectively while JJG has shed about 5.8% thanks to its focus over corn (45.84%), soybeans (35.38%) and wheat (18.78%). Expectations of faster corn plantings in the Midwest region and favorable weather in the southern Plains wheat belt took corn and wheat futures to a 6-month low on April 27, 2015. So, the declines in the ETFs are self-explanatory.

Homebuilding

Housing recovery suddenly took a turn for the worst as sales of new single-family home in March slipped from the seven-year peak recorded in February. The March data is now the lowest in four months. Analysts believe that sluggish wage growth appears to be having the upper hand over low interest rates somewhat dampening the start of a busy spring selling season.

Though some other indicators including existing home sales and homebuilding confidence data were favorable for the month, the space could not avoid a sell-off. A new homebuilding ETF, ETRACS ISE Exclusively Homebuilders ETN (HOMX), bore the maximum brunt. HOMX was down over 7% (read: Two New Homebuilding ETFs from UBS Hits the Market).

India

After a lofty run for most of the last one year, India ETFs are finally retreating. A host of issues including profit booking, lower-than-expected earnings from several sector majors, a relatively weaker dollar affecting the Indian export sector and issues over minimum alternate tax appear to weigh on Indian stocks.

The Indian tax officials are demanding Minimum Alternate Tax on capital gains over previous years from foreign institutional investors (FIIs). This step seems to add to the dour sentiments over India investing. India ETFs including iShares MSCI India Small Cap Index Fund (SMIN - ETF report), EGShares India Consumer ETF (INCO) and iPath MSCI India Index ETN (INP) have shed in the range of 5% to 7% in the last one month.
 

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