Diversification didn't do much for you today

Posted by: Aaron Pressman on February 27, 2007

Apropos of my previous entry — and perhaps equally amazing for fans of diversification — only 9 out of 289 exchange-traded funds tracked at Yahoo Finance had positive returns today, led by the iShares Lehman 20+ Year Treasury Bond Fund (TLT), up 1.3%, and the CurrencyShares Swiss Franc Trust (FXF), up 1.1%. All of the winners listed by Yahoo were either bond or currency funds. Commodity funds all fell as the scare in China could lead to lower demand from the Asian giant. The iShares GSCI Commodity Indexed Trust (GSG) lost 2.4%, for example. And international funds took it hardest of all. The iShares MSCI Emerging Markets Index fund (EEM) lost 8.1% and its European counterpart (EZU) fell 5.6%.

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Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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