Bernanke and Housing Give ETFs a Boost

Major indexes hit year-to-date highs Friday afternoon as investors reacted positively to stronger housing sales data and a key Fed speech that pointed to global stabilization.

Dedicated short-bias exchange traded funds using varying degrees of leveraged led the losers for the week, moving in the opposite direction to the market.

The Dow Jones Industrial Average climbed 156 points to close at 9506, a 1.7% gain, after earlier peaking at 9511. The Nasdaq was up 32 at 2021 and the S&P 500 rose 19 to 1026.

Investors were cheered by positive data on July existing-home sales, which rose 7.2%, the fourth monthly consecutive increase, according to the National Association of Realtors.

During a keynote speech in Jackson Hole, Wyo., earlier in the day, Federal Reserve Chairman Ben Bernanke said the global economy is approaching stability, but that economic recovery "is likely to be relatively slow at first, with unemployment declining only gradually from high levels."

"Since we last met here, the world has been through the most severe financial crisis since the great Depression," he said. "Critical challenges remain" in reaching a return to growth, he said, indicating the Fed will not be raising interest rates soon.

Oil hit $74.25 a barrel -- a 2009 high -- in the Friday session. For a detailed rundown on Friday’s trading session see our market story.

The energy-weighted Market Vectors Russia fund (RSX) climbed 9.1% for the week on surging energy prices, while the United States Oil fund (USO) rose 8.2%. The SPDR S&P Homebuilders fund (XHB) climbed 6.2% on positive housing data.

The United States Natural Gas fund (UNG) fell 9.1% for the week after it stopped issuing new shares and started trading more like a closed-end fund. The Short S&P 500 ProShares fund (SH) shed 4.1% for the week.

Earnings Note

Launching Pad
Global X Funds launches its FTSE Nordic 30 fund (GXF) Wednesday, offering a direct play on an index of major Scandinavian companies. It is the first ETF for Nordic names in the United States. The fund will charge an expense ratio of 0.5%.

ProFunds Group on Thursday launched a short-exposure ETF designed to replicate the inverse performance of long-term U.S. Treasury bonds. The ProShares Short 20+ Year Treasury (TBF) seeks to provide the opposite results of the Barclays Capital 20+ Year U.S. Treasury Index. The fund has an expense ratio of 0.95%.