10. Morningstar Dividend Leaders Index Fund (FDL): Up 11.

7% This ETF performed quite well last year as investors flocked towards dividend-pa ying stocks in times of uncertainty. FDL is linked to an index comprised of comp anies that have shown dividend stability and consistency historically, a methodo logy that should result in more stable firms capable of weathering economic stor ms. FDL has a 30-day SEC yield of about 4% a handsome current return in this envir onment [see Dividend ETF Investing: Four Critical Factors To Consider]. 9. Consumer Staples AlphaDEX Fund (FXG): Up 12.4% This ETF also comes from First Trust, utilizing the company s AlphaDEX methodology to tap into a corner of the U.S. market that is generally known for stability. The FXG portfolio consists of about 35 consumer staples stocks, including food a nd beverage retailers, food manufacturers, household products companies, and tob acco companies. Other ETFs in the Consumer Staples ETFdb Category, including the Consumer Staples SPDR (XLP), have also turned in strong performances in 2011. 8. E-TRACS Alerian MLP Infrastructure Index (MLPI): Up 12.4% Similar to some other products on this list, MLPI has likely benefited from the increased interest in high-yielding securities. Thanks to some unique tax advant ages, MLPs generally make hefty dividends to shareholders. And because of the na ture of revenues generated, this asset class also tends to be rather stable; it isn t subject to movements in spot commodity prices in the same way traditional oi l and gas companies are. It is interesting to note the significant performance gap between this ETN and A MLP, an ETF linked to the same index. The ETF was up a less impressive 6.3% thro ugh December 20, the result of the structural differences between the two [see W hat's The Difference? Understanding What Distinguishes Similar ETFs]. 7. FTSE NAREIT Residential Index Fund (REZ): Up 13.5% Some investors have moved away from real estate in recent years, but this member of the Real Estate ETFdb Category has performed quite nicely in 2011. REZ, whic h focuses on real estate firms engaged in the ownership of apartment buildings, storage facilities, and health care property, has thrived as rental prices have been surprisingly firm [see Surprising ETF Standouts of 2011]. 6. Barclays ETN+ S&P VEQTOR ETN (VQT): Up 14.7% This is another quirky exchange-traded note; VQT is dynamic in the sense that it a ctually shifts exposure across various asset classes depending on market conditi ons. Basically, the exposure offered is a blend between equities and volatility futures, with the allocation to each depending on factors such as level of the V IX and recent volatility trends. That methodology has worked out quite nicely, a s VQT held up during the chaotic stretches this year thanks to the position in V IX futures [see Examining "Dynamic" ETFs]. 5. E-TRACS S&P 500 Gold Hedged ETN (SPGH): Up 14.9% This ETN is one of the more unique products out there; SPGH combines equal posit ions in the S&P 500 Total Return Index with long positions in near-term COMEX go ld futures contracts, with a monthly rebalance (so it s technically a hybrid ETN, and not a pure play equity product). The impressive delta relative to SPY is att ributable primarily to the gold exposure, as the precious metal has performed qu ite well on the year (despite some recent weakness) [see Hedge Market Exposure W ith These Innovative ETNs]. 4. Utilities ETF (VPU): Up 15.9% Continuing the trend of high-yielding, low volatility standouts in 2011 is VPU, which offers broad-based exposure to the domestic utilities sector. Utilities mi ght not be quite as sexy as tech stocks or energy companies, but the high divide nd yields and relative stability have been a boon to investors in 2011.

as BHH is neither a true ETF nor is it expected to be around for much longer. 1.7% This product isn t a true ETF at least not for the majority of 2011. Pharmaceuticals Index Fund (IHE): Up 19. (about 94% of assets) and ICG Group (about 6%). With only about $16 million in assets. Prior to it s conversion. some positive regulatory deve lopments. and Gilead ( 24%). and PJP vary dramatically on the year. Pfizer. including Johnson & Johnson. Market Vectors Biotech ETF / HOLDRS Biotech (BBH): Up 17.S. The IHE portfolio consists of about 40 individua l companies. it won t be that difficult to replicate the portfolio this product ma intained. That s too bad for investors who had held this product: BHH has del ivered cumulative returns of more than 400% over the last three years. In other words. BHH is headed for extin ction shortly. Inc. BBH had big allocations to Amgen (35%). including PPH. population continues to age. and Merck. Returns among other pharma ETFs.3. Biogen (29%). Different Returns]. Fortunately. those big concentrations served this fund qu ite well in 2011 [see HOLDRS Conversion Begins: Investor Action Required]. BHH consists of only two stocks: Ariba. . BBH has histori cally been one of the HOLDRS offered by Merrill Lynch. S. some of the less popular HOLDRS products are being shuttered.7% This entry on the list comes with an asterisk. the returns are attributable almost entir ely to a single stock (ARBA). and nearl y 200% over the previous five years. as this corner of the marke t has benefited from a resurgence in M&A activity. highlighting the potentially major impact of seemingly minor differenc es in products covering sectors of the global economy [see The Pharma Four: Simi lar ETFs. XPH.9% Pharmaceutical companies have surged higher in 2011. 2. HOLDRS B2B Internet (BHH): Up 17. and expectations for increased demand for prescription drugs as the U. In conjunction with the conversion of several HOLDRS to Van Eck ETFs. and has only recently bee n converted into a Market Vectors ETF (the ticker remains the same). Dow Jones U. Though the more balanced approach taken under the new structure will no do ubt be appealing to many investors.