The Baltic Dry Index is a shipping price index created by the London based Baltic Exchange. It measures changes in prices of transporting dry bulk cargo such as grain, cocoa, phosphates, fertilizers, animal feed, oil, coal, iron ore and metal by sea. The Baltic Dry Index is calculated by taking the time charter components of the Baltic’s capesize, panamax, supramax and handysize indices (Baltic Exchange). Multiple geographic routes are taken into consideration in the calculation of all indices.

The Baltic Dry Index is considered an excellent gauge of global trade. The Baltic Dry Index measures the demand and supply of dry bulk shipping capacity. An increase in demand for dry bulk shipping capacity indicates growth in trade of bulk cargo which is often raw material for intermediate or finished goods. This points to growth in consumption and general economic health. The Baltic Dry Index is considered an impartial leading indicator (predictor of future economic activity) because it is free from speculation. Nor is it subject to many adjustments and revisions. The Baltic Dry Index indicates the real demand and supply for dry bulk cargo space. Only those who have cargo to ship will buy space and anyone with the available space would supply it because it’s very costly to keep an idle ship.

With just over a month in the books for 2010, equity markets have already been taken on a wild ride. After an initial jump, concerns over a government-imposed slowdown in China weighed on global stocks, particularly emerging markets and commodity-intensive businesses. As we enter February, many equity ETFs find themselves in the red for the year, attempting to claw back to break-even.

But we profile a seven funds that are off to a hot start in 2009. Many of 2009’s best performers–such as emerging markets and technology ETFs–are clustered far down the list, while many of the laggards of 2009.

With barely more than a month in the books, 2010 is shaping up to be a bipolar year for global equity markets. After surging ahead in the first week and a half of January trading, a sharp pullback handed many benchmarks one of their worst monthly performances since the recovery began. But when the calendar turned to February, equities took off again on a mini-rally.

January’s big sell-off has left many equity ETFs trying to get back to break-even on the year. Of the 559 non-leveraged, non-inverse ETFs in the ETF screener, only about 100 are up year-t0-date, and there are some surprising names at the top of the list. Banking funds have surged in the first month of the year, as have certain emerging and frontier markets (Turkey and Colombia are among the top performing equity markets so far). Also near the top of the list is the Claymore/Delta Global Shipping Index ETF (SEA), an ETF designed to offer exposure to the global shipping industry.