BY Billy Fisher:

Contributor, Stock Traders Daily

Real Time Trading Reports:  Included are detailed trading reports designed to help investors realize opportunities in these companies.  The reports are linked to the stock symbols in the article below.

 Performance - Click Here

(La Jolla, CA)  This past year produced some interesting trends in the world of ETFs. Many of the top performing ETFs in 2008 experienced significant pullbacks in 2009. Several of the basement dwellers in 2008 emerged at the top of the heap in 2009. Will similar patterns occur in 2010? Only time will tell.

For traders looking to make some contrarian bets going into the New Year, here are some of the worst performing ETFs from 2010. For the purpose of this analysis, we looked at one inverse ETF. The other funds are non-leveraged long ETFs.

The Financial Rollercoaster

Of the 881 ETFs tracked by Morningstar, the Direxion Daily Financial Bear 3X Shares Fund (NYSE: FAZ) has been the worst performing ETF in 2009. Year-to-date, FAZ has fallen 94.7%. This slide marks a dramatic turnaround for traders who were selling financial stocks short in 2008 and did quite well in doing so.

Since bottoming out in March, the financial sector has not only regained its footing, but it has also retraced a decent chunk of its previous losses. The largest recipients of TARP funds have already repaid these loans and are hoping to keep this dark chapter in the past. However, the sector’s biggest players will now be turning their attention to Congress as it attempts to overhaul financial regulation and the potential impact any legislation could have on the sector’s current momentum. For traders looking to use this ETF as a way to put money behind their sentiment, it would be worthwhile to check out our free FAZ trading report.

Not all ETFs in the financial sector have torn the cover off the ball in 2009. On the contrary, the iShares Dow Jones U.S. Regional Banks Fund (NYSE: IAT) has been quite underwhelming this year. IAT is actually down 9.8% this year. For traders who think that this ETF is ready to breakout, it would be beneficial to review our free IAT trading report for additional input.

Running on Empty

On the commodity front, the biggest disappointment of 2009 has been the Unites States Natural Gas Fund (NYSE: UNG). Although most other commodities have experienced resurgence, UNG has not participated in the movement. Plummeting natural gas prices have caused this ETF to lose 55.5% year-to-date. This has been the worst performance in 2009 among non-inverse ETFs.

Last week a stockpile report from the U.S. Energy Department showed that natural gas inventories have declined less than was previously expected. This reality caused natural gas for January delivery to shed 3.1% and settle at $5.643 per million British thermal units on the New York Mercantile Exchange. Whether you are a trader expecting natural gas to reverse course in 2009 or are expecting a continued downward spiral, our free UNG trading report will assist you in knowing when to pull the trigger.

Another notable underperformed in 2009 has been the iShares Barclays 20+ Year Treasury Bond Fund (NYSE: TLT). As the Treasury yield curve has approached record levels, this ETF has declined 22.2% year-to-date. After an epic performance in the closing weeks of 2008, this fund has dropped off the table. Whether you are looking to take a long or short position in this ETF, you will find our free TLT trading report helpful in making your final decision.

Looking for the best ETFs for 2010? Check out dynamic real-time trading reports published by Stock Traders Daily CEO, Tom Kee Jr., with a Free Trial.YTD 2009, Kee's Position Trades are up +56% on 4 trades.

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