iShares Dow Jones Select Dividend Index posted a one week gain of 9.10%. Since hundreds of billions of our tax dollars are going to bail out many of the companies held by this fund, it stands to reason that investors want a piece of the action. Investors' tax burden has shrunk profoundly with Capital gains tax changes over recent years, taking tax money paid by everyone and redistributing it to investors through bailouts is just gravy.
Small caps and real estate also posted solid gains. Real Estate has seen a slow but steady rise as our tax dollars have also gone toward bailing out home owners who bought more house than they could afford. Not sure why small caps are up.
The big losers this week were emerging and foreign markets and bonds. Vanguard Emerging Markets Stock ETF VWO lost 8.08%. I guess investors feel that countries that do not have the will or the means to bail out companies that do stupid things aren't as tempting these days.
It is worth noting that VWO lost 8.08% while the Emerging Market fund I picked SSEMX (and actually own) only lost 0.35%. It is odd, that the Vanguard Mutual Fund only lost 0.77%.
The big emerging markets news last week was the collapse of the Russia's Mafia, I mean Market.
Maybe the Vanguard ETF office did not get the memo that the Vanguard mutual fund office got about selling Russian positions as commodities fell over the last few weeks...