IJR

Great Year for Small Caps

If a strong move in the last four months of 2010 meant a good year for stocks in general, it was great for small cap stocks. The S&P SmallCap 600 (IJR) finished up 26% in 2010 compared to a 14% gain for the large cap S&P 500.

XRT

Retailers Finish Strong

Retail stocks had a strong holiday season, outpacing the broader market in the 4th quarter and for the full year. The SPDR S&P Retail ETF (XRT) is up 16% in Q4 and 36% year-to-date.

HYD

Munis Under Fire

Investors have recently sold off municipal bonds and there could be more selling on the way. On yesterday’s U.S. television news magazine “60 Minutes”, reporter Steve Kroft lead a segment that focused on the growing financial woes of state and local governments.

netflix

Netflix Shorts

Hedge fund managers who like to short overvalued stocks have their sights set on Netflix (NFLX). Whitney Tilson of T2 Partners makes the case in his article Why We’re Short Netflix, pointing out the company’s lofty valuation and competitive vulnerabilities.

CMG

Chipotle and Midcap Growth Stocks

Chipotle (CMG) and other midcap growth stocks have recently outpaced the broader market adding to their already impressive performance in 2010. Despite today’s 5% decline, Chipotle Mexican Grill is up nearly 160% in 2010, gaining 26 points since late October.

RALS

ProShares Introduces First Long/Short RAFI ETF

ProShares recently launched the ProShares RAFI Long/Short (RALS) exchange traded fund. RALS is the first dedicated ETF that offers a long/short strategy based on Research Affiliate’s pioneering Fundamental Index (RAFI®) methodology.

IYT

Transports Roll to New High

The Dow Transportation Index hit a new high for the year on Friday as transport stocks continue to outperform the broader market in 2010. The Dow Jones Transportation Average Index Fund (IYT) is up 25% on the year compared to plus 10% for the S&P 500.

financial services

Invesco Launches Four KBW Portfolios

Invesco PowerShares recently introduced four new ETF portfolios based on Keefe, Bruyette & Woods, Inc. (KBW) indexes. The ETFs provide investors with access to the real estate investment trust (REIT), financial services, and property & casualty insurance market sectors.

tips

Short Term TIPS ETF Starts Trading

BlackRock’s iShares has launched the iShares Barclays 0-5 Year TIPS Bond Fund (STIP) on the NYSE Arca. The new exchange traded fund offers targeted exposure to the short end of the domestic Treasury Inflation Protected Security (TIPS) curve through TIPS with less than five years to maturity.