Interesting Business and Investment Stories That You Missed

Over the past few days i came across some interesting news/facts which deserves some limelight.

Basic Material ETFs
ETFs that focus on large-cap companies with exposure to basic materials have had nice returns for the year. Why is that so ? Analyst believe U.S. economy is growing and a growing economy needs materials. Returns on the 2 popular ETFs are

Vanguard Materials ETF (VAW) = 8.3%

Materials Select Sector SPDR (XLB) = 7.5%Top companies in both of these ETFs are: Du Pont, Dow Chemical, Alcoa, Monsanto, and Phelps Dodge.

Tax Efficient ETFs
Many of the newer ETFs are more specialized which could effect their tax efficiency in different ways.
Here are 5 funds that are top-rated for consistent returns and tax efficiency:

iShares MSCI Austria Index (EWO): 5-year return of 36% and over that time lost 0.4% to tax costs.

iShares Russell 2000 Value Index (IWN): 5-year return of 13% and over that time lost 0.5% to tax costs.

Vanguard Small Cap Value Index (VBR): 3-year return of 14% and over that time lost 0.5% to tax costs.

iShares Russell Mid Cap Value Index (IWS): 5-year return of 15% and over that time lost 0.7% to tax costs.

Vanguard Value Index (VTV): 3-year return of 13% and over that time lost 0.5% to tax costs.

China Raise Interest Rates
China's central bank said it would raise both its lending and deposit rates by 0.27 % points to bring investment and credit growth in check and help balance the economy. The one-year benchmark yuan deposit rate would rise to 2.79% from 2.52%. The one-year benchmark lending rate is to rise to 6.39% from 6.12%.

Energy Market
John Segner, manager of the AIM Energy fund, which has 17% average returns over the last decade said that the energy market will see a temporary improvement in the supply-demand balance in 2007, but will then return to a supply shortage in 2008 and 2009. Demand will continue to rise, driven by India and China, but supply from non-OPEC countries, particularly Venezuela, Nigeria, Iran and Iraq, won't rise sufficiently.