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By Scott Burns | 05-20-2010 03:00 PM

Burns: Junk Rally Unwinding

Director of ETF research Scott Burns recaps another ugly day in the market, year-to-date performance trends, and how quality names are holding up.

Jeremy Glaser: I'm Jeremy Glaser with Morningstar.com. After another tough day in the market, I'm here with director of ETF research Scott Burns just to survey which ETFs did well, which ones did badly, and what opportunities there could be for investors looking forward. Scott, thanks for talking with me today.

Scott Burns: Jeremy, thanks for having me.

Glaser: So did anything win on a day like today.

Burns: Well, so you know, we look at the world through 11 different ETF/asset class lenses to really look at what a broad, diversified portfolio would look like. We look at those 11 different securities as a kind of market barometer, a little different from what Morningstar has, but more broad. Really, only one thing has actually survived the day, and that would be the short-term Treasury bond market. So we use the iShares Barclays 1-3 Year Treasury Bond with the ticker SHY, and that was positive for the day, and really just barely so. So today was really an ugly day across the whole spectrum of investments.

Glaser: When was the last time we had a day where it seems like everything was doing badly?

Burns: I'd actually have to say probably the biggest surprise of today, and we've got a lot of selling off in emerging markets, European markets, the U.S., but that gold is down. So the SPDR Gold ETF was down around a half percent today. Really, the last time that I can think of where we just had this blood in the streets, everything down, no real place to hide was October of 2008. So I don't know if today is just a one-off day or maybe foreshadowing of something a little more severe.

Glaser: It certainly seems, over the last couple weeks, we've had a lot of these relatively big selloffs. Have you seen that in the year-to-date performance of a lot of the ETF's that you look at?

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