Each week, I like to publish the past week's hottest ETFs to share some new trends and niche ETFs out there and give investors some new ideas. For this week, the triple leveraged ETFs for Tech and Shorting Treasuries continued to be hot. Additionally, some Emerging Market ETFs showed up (see full list of 2009 market returns YTD by country and emerging market region via various ETFs and ETNs).

TNA - Direxion 3X Small Cap - Up 18% - This best-performing ETF of the week is a triple leveraged play on the Russell 2000 Small Cap index. Since this is the first 3X leveraged ETF that appears in the list, I always caveat by sharing that while the near term return can be 3X long or short, over time, daily rebalancing and fees eat away dramatically at the returns - to the point that you can actually lose money on both the long and short ETF regardless of what the underlying sector does - check out 3X ETF risks for more details.

IDX - Market Vectors Indonesia Index - Up 15% - This ETF is up over 120% in the prior 3 month period as Indonesia racks up the gains on a non-leveraged basis. As virtually every emerging market ETF was battered more badly than US shares during the economic downturn, on the rebound, emerging markets have catapulted back. Indonesia in particular has been hot. In May, JPMorgan advised clients to increase their exposure to Indonesia. A key development to watch would be the country's elections on July 8 where a pro-business government win could spell another big jump like we saw a few week's back when the India ETF took off 22% in a week following a pro-business election outcome.


TMV - Direxion 3X Short 30 year Treasury - Up 15% - A few months back, shorting Treasuries seemed like surefire way to capture the optimal risk-adjusted return - since Treasuries really couldn't run much higher with yields approaching zero - and some short dated maturities actually fetching negative yields! Well, the strategy has paid off with another up 15% week and up 50% over the prior 3 months. (See full rationale and other ways to Short Treasuries).


TYH - Direxion Daily Technology Bull 3X Shares - Up 13% - This 3X Tech ETF was on last week's Hottest ETF list as well with a 14% gain for the week. The top 3 underlying holdings are Apple, Cisco and Google. TYH is now up over 150% over the prior 3 month period vs. a 37% return for the S&P500 (not too shabby either, but with higher Beta Tech shares leverage at 3X, well, this is what you get).


Disclosure: While the author does not hold any of the aforementioned ETFs specifically, there is a position in TBT, which is the 2X Short Treasury ETF.

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