ETF Winners and Losers During the Shutdown

by on October 21, 2013 | ETFs Mentioned:

Late last week, President Barack Obama signed a bill to end the 16-day U.S. government shutdown and avoid a default. Over that period, stocks were anything but calm, as speculation as to whether or not the nation would avoid default, and when that deal may come, sent markets into a frenzy. Below we outline some of the best and worst performing ETFs during the government shutdown.

The Worst Performing ETFs

A number of funds suffered at the hands of a bickering Congress, but none more than the following three, which shaved off more than 20% of their share price:

Four more ETFs lost between 15% and 20%, three of which carry a 3X leverage:

Seventeen more funds lost between 10% and 15% – the vast majority of which apply a leverage of some kind:

The Best Performing ETFs

While some ETFs struggled to stay afloat, others used the government fiasco to their advantage, turning in some impressive performances. Thirteen funds were able to gain between 10% and 15% over the 16-day stretch:

Six more products fell into the 15% to 20% category, with the majority being focused on emerging economies:

Finally, three funds were able to crack the 20% barrier, all of which utilize a 3X leverage:

Technically, the best performing ETF during the shutdown was the SPECTRUM Lg Cap U.S. Sector ETN (EEH, B-), gaining 108% during that period. We omitted it from this list given its extremely thin volume and over 500% premium to its current NAV.

 The Big Four

A quick glance at four of the biggest funds in the space may surprise some. SPY was actually able to gain 2.4% during the period while GLD lost 3.6%, a surprising result for some, given its safe haven appeal. Clearly, emerging markets stepped up, allowing EEM to jump 5.5%.

The Full Results

The table below displays each fund from the above charts. Click on a ticker to learn more about that particular ETF.

ETF Shutdown Performance
Long Extended Russell 1000 TR Index ETN (ROLA, C+) -30.16%
Daily Natural Gas Related Bear 3x Shares (GASX, C) -22.29%
Daily Gold Miners Bull 3x Shares (NUGT, C+) -20.97%
Ultra VIX Short-Term Futures ETF (UVXY, B-) -15.93%
3x Inverse Natural Gas ETN (DGAZ, C) -15.83%
Daily Emerging Markets Bear 3X Shares (EDZ, B+) -15.78%
Daily Russia Bear 3x Shares (RUSS, C+) -15.31%
Daily 2x VIX Short-Term ETN (TVIX, C+) -14.53%
C-Tracks ETN Citi Volatility Index Total Return (CVOL, C+) -14.11%
Direxion Daily Brazil Bear 3x Shares (BRZS, n/a) -13.79%
2x Gold Bull/S&P 500 Bear (FSG, C+) -13.39%
Market Vectors Junior Gold Miners ETF (GDXJ, B+) -13.25%
Daily Real Estate Bear 3x Shares (DRV, B-) -12.78%
Direxion Daily South Korea Bear 3X Shares (KORZ, n/a) -11.77%
3x Long Gold ETN (UGLD, B-) -11.45%
Daily Financial Bear 3X Shares (FAZ, A-) -11.24%
Gold Explorers ETF (GLDX, C+) -11.16%
UltraPro Short Financials (FINZ, B+) -10.80%
Daily Energy Bear 3X Shares (ERY, B) -10.66%
UltraShort MSCI Emerging Markets (EEV, B+) -10.57%
Daily China Bear 3x Shares (YANG, B+) -10.37%
UltraShort MSCI Brazil (BZQ, A-) -10.30%
UltraShort DJ-UBS Natural Gas (KOLD, C+) -10.03%
DB Base Metals Short ETN (BOS, B-) -10.01%
FTSE Greece 20 ETF (GREK, B-) 10.05%
3x Long Brent Crude ETN (UOIL, C) 10.08%
Daily Energy Bull 3X Shares (ERX, B) 10.47%
3x Inverse Gold ETN (DGLD, B+) 10.54%
India Infrastructure ETF (INXX, C) 10.57%
Solar ETF (TAN, C+) 10.72%
Daily Financial Bull 3X Shares (FAS, B+) 10.82%
Market Vectors Solar Energy ETF (KWT, C+) 10.87%
Ultra MSCI Emerging Markets (EET, B-) 10.97%
UltraPro Financials (FINU, B) 11.37%
MSCI Indonesia ETF (EIDO, B-) 11.49%
Daily Real Estate Bull 3x Shares (DRN, B+) 12.34%
Daily Latin America 3x Bull Shares (LBJ, C+) 14.27%
3x Long Natural Gas ETN (UGAZ, C+) 15.54%
Daily Russia Bull 3x Shares (RUSL, C+) 15.72%
Daily Emerging Markets Bull 3X Shares (EDC, B) 16.60%
Direxion Daily Brazil Bull 3x Shares (BRZU, n/a) 16.61%
VelocityShares Emerging Asia DR ETF (ASDR, n/a) 17.30%
Direxion Daily South Korea Bull 3X Shares (KORU, n/a) 18.21%
Daily Gold Miners Bear 3x Shares (DUST, B-) 20.99%
Daily India Bull 2x Shares (INDL, C) 25.06%
Daily Natural Gas Related Bull 3x Shares (GASL, C) 25.79%
SPDR S&P 500 ETF (SPY, A) 2.42%
SPDR Gold Trust (GLD, A-) -3.62%
iShares MSCI Emerging Markets ETF (EEM, A-) 5.50%
20+ Year Treasury Bond ETF (TLT, B) -0.25%