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Top ETF Trends for 2011

With investors pouring $1 trillion into ETF's in 2010, we thought you might want to get ahead of the big themes for next year.

For insights we turned to Matt Hougan, IndexUniverse Global Head of Editorial and President of ETF Analytics. Here's what he tells us.

(1) COPPER COP-OUT.

"Everyone thinks the new physically backed copper ETFs are going to be as popular as the GLD, but I think they’re wrong for 3 reasons," Hougan says.

"1) They’re going to be expensive because the fee for storing copper is sky high." ($1000 in gold is the size of a finger while $1000 in copper is the size of a car.) "2) JJC is a perfectly good alternative without the storage fee and 3) I just don’t see that much investor demand."

(2) ACTIVE ETFS - ALL SMOKE, NO FIRE

"Big names on Wall Street are launching active ETFs," Hougan says, "but investors don’t buy ETFs to gain access to managers. They buy ETFs to manage money themselves."

(3) BUY OFF-LABEL

"Too many people buy ETFs because of the ticker," Hougan says. "Lots of investors buy GLD for that reason. But investors can get the same exposure for half the fee in IAU ."


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Trader disclosure: On Dec. 23, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Matt Hougan owns (VWO). Jon Najarian owns (ADBE), is short (ADBE) calls. Jon Najarian owns (BBT), is short (BBT) calls. Jon Najarian owns (BBY), is short (BBY) calls. Jon Najarian owns (CSCO), is short (CSCO) calls. Jon Najarian owns (GS), is short (GS) calls. Jon Najarian owns (MSFT), is short (MSFT) calls. Jon Najarian owns (ODP) calls. Jon Najarian owns (POT), is short (POT) calls. Jon Najarian owns (RHT), is short (RHT) calls. Jon Najarian owns (VZ) call spreads. Jon Najarian owns (EXC) puts. Jon Najarian owns (ANW). Jon Najarian owns (IBM), is short (IBM) calls. Jon Najarian owns (SD), is short (SD) calls. Jon Najarian owns (V), is short (V) calls. Jon Najarian owns (DF). Karen Finerman owns (AAPL), (BAC), (GOOG), (JPM) and (MSFT).

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DENNIS GARTMAN
Funds Managed by Dennis Gartman are short the Euro
Funds Managed by Dennis Gartman are short the Yen
Funds Managed by Dennis Gartman are long Gold
Funds Managed by Dennis Gartman are long Crude

KAREN FINERMAN
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (ARO)
Finerman's firm owns (AVP) calls
Finerman's firm owns (BBY)
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (YUM)

ANTHONY SCARAMUCCI
Scaramucci and Skybridge Capital own (AAPL)
Scaramucci and Skybridge Capital own (C)
Scaramucci and Skybridge Capital own (DELL)
Scaramucci and Skybridge Capital own (EBAY)
Scaramucci and Skybridge Capital own (GS)
Scaramucci and Skybridge Capital own (NKE)
Scaramucci and Skybridge Capital own S&P 500
Scaramucci and Skybridge Capital own USD
Scaramucci and Skybridge Capital Own (JNJ)
Scaramucci and Skybridge Capital Own (KIRK)

ZACAHRY KARABELL
Karabell and River Twice Capital own (AAPL)
Karabell and River Twice Capital own (C)
Karabell and River Twice Capital own (FCX)
Karabell and River Twice Capital own (FXI)
Karabell and River Twice Capital own (GE)
Karabell and River Twice Capital own (GS)
Karabell and River Twice Capital own (POT)
Karabell and River Twice Capital own (RIMM)
River Twice Capital Owns (SQM)
River Twice Capital owns (CF)
River Twice Capital owns (CSCO)
River Twice Capital owns (GS)
River Twice Capital owns (MSFT)
River Twice Capital is short (SPY)

STEPHEN WEISS
Weiss has no disclosures in Gold

MATT HOUGAN
Hougan has no disclosures on GLD, IAU

BORIS SCHLOSSBERG
Sclossberg has no disclosures

BRIAN STUTLAND
Stutland Equities is a market maker holding hedged positions in VIX, SPX, and SPY options
Stutland Equities is a market maker holding positions in VIX futures

EMMA SUGARMAN
Emma Sugarman has no disclosures

JON NAJARIAN FAST FIRE SOT
Jon Najarian has no disclosure in (DF)

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