5 ETFs (And 1 Stock) Hitting a High Note

A number of stocks and ETFs were able to outperform the overall market today and rally to fresh 52-week highs. Several caught my attention and I wanted to share them with you.

• SPDR High Yield Bond ETF (JNK) - Our firm has been high on junk bonds for the better part of a year and JNK has been a big winner not only by continuing its uptrend and 54% rise from the March low, but also because the ETF currently pays  a 10.9% annual dividend. The huge moves in JNK are most likely over, but there is still more upside and with an attractive yield and diversification bonuses, it could be a core holding. (PFG owns shares of JNK)

• iShares Dow Jones US Medical Devices ETF (IHI) - Fears that a new health care bill will hurt the medical device firms is clearly not something Wall Street is worried about as IHI hits a new yearly high. The ETF is composed of big name stocks in the industry such as Medtronic (MDT), Stryker (SYK), and Zimmer Holdings (ZMH). (PFG owns shares of IHI)

• Fiduciary/Claymore MLP Opportunity Fund (FMO) - Composed of a basket of master limited partnerships (MLPs) that are highly concentrated in the energy sector. A rise in the price of energy commodities along with a strong stock market and the fact it pays a 15% annual dividend make the fund very attractive. (PFG owns shares of FMO)

• BONUS: Copa Holdings (CPA) - I had to throw in one stock!! A Panama-based airline that offers flights in the Americas. The company has an alliance with Continental Airlines (CAL). In the last 12 months CPA is up 85% as CAL is down 4%. If you want to invest in the airlines you need to fly your portfolio out of the US and look at several located in South America.

• iShares Chile ETF (ECH) - Speaking of South America, the Chile ETF continues its dominance as it gains 4.5% in the first three trading days of 2010. This follows an 83% gain in 2009! I would not chase the ETF at current levels, but any healthy pullbacks could be bought.

• PowerShares Base Metals ETF (DBB) - The ETF is composed of copper, aluminum, and zinc futures and has been the strongest metals ETF in the market. Thankfully DBB is one of our firm’s largest holdings and with inflation on the rise and the economy turning the future looks promising. Add in a weak US Dollar and DBB could hit the trifecta and become a big winner in 2010. (PFG owns shares of DBB)