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Top ETFs roundup:Although the U.S. markets started strong in April, they closed the month in the red. To blame was a major selloff in various momentum stocks, like social media, Internet, biotechnology, and more. In addition to this, the ongoing turmoil in Ukraine-Russia conflict had its toll on broad equity markets.
However, commodities were able to perform exceptionally well in April. They were able to improve demand-supply dynamics and favor the global trends.
As a result, many commodity ETFs emerged as strong winners in last month, and were some of the top ETFs across all sectors.
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Here are five of the top ETFs in April 2014 from the surging commodities sector…
Five of April's Top ETFs From The Booming Commodities Sector
UBS Nickel Subindex Total Return ETF (JJN)
This exchange-traded fund was a top ETF for April. Up 16.79% that month, the fund provides excellent returns through a futures contract on the metal.
The Indonesian export ban and high geopolitical tension in Russia (the second largest nickel product in the world) are fueling JJN's gains. If there are more penalties on Russia for intervening in Ukraine, JJN could benefit further.
UBS Coffee Subindex Total Return ETF (JO)
With a 15.59% gain in April and more than 83% gains year-to-date, JO isn't just one of the top ETFs of April – it's a top ETF of 2014. The fund delivers through a futures contract on coffee. On daily basis, the average volume is 259,000 shares, and the fund has been able to attract assets worth $113.8 million.
Fueling JO's rise is drought concern in Brazil contributing to increased coffee prices this year.
UBS Natural Gas ETF (GAZ)
GAZ, up 12.37% in April, comes with a futures contract combined with the interest on treasury bills (T-bills). The fund has been able to attract around $34.4 million in assets. The average volume has been 121,000 shares per day.
The fund benefited from the long, cold winter that sent heat demands soaring.
Vanguard Dividend Appreciation ETF (VIG)
VIG made its debut in 2006, and currently manages over $23 billion worth of assets. With an expense ratio of about 0.10%, this ETF was one of the cheapest in the market.
Although the fund only gained 1.01% in April, it has a dividend yield of 2.2% and its ability to be suitable for long-term capital appreciation make it one of the top ETFs in April.
Schwab U.S. Large-Cap Value ETF (SCHV)
This exchange-traded fund was launched in 2009. It has been able to attract around $810 million worth of assets that have been invested in 359 holdings. Major sectors the fund has invested in include Financials, Consumer Staples, Energy and Consumer Discretionary.
SCHV's annual fee for the fund is 7 basis points. That makes it one of the cheapest options in the large-cap value space. In addition to this, the dividend yield is attractive at 2.3%. Despite the fact that SCHV gained only 0.9% in April and 13.73% over the last 12 months, its discount value and income stream through dividends make it a top ETF in April.
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