The ETF 50 Index™, the industry's leading measure of ETF performance, spurted 4.8% in April, its biggest gain in the last year.

The swagger is back on Wall Street. Risk has become yesterday's problem. Investors are convinced the bear market is over, and the recession will be, soon.

Markets rallied broadly, in terms of regions as well as sectors. SPDR S&P 500 Trust (SPY) gained 4.8%, PowerShares QQQ (QQQQ) 8.0%, iShares MSCI Emerging Markets Index (EEM) 9.3% and Financial Sector SPDR (XLF) 7.1%.

Bonds were lower as investors reacted to a shift in interest-rate policy from lavish cuts to looming hikes. iShares Lehman Aggregate Bond Index (AGG) slipped 0.1%, and iShares Lehman 7-10 Year Treasury (IEF) ebbed 1.1%.

Precious metals continued the retreat they began in March. StreetTracks Gold Trust (GLD) declined 4.1%, and iShares Silver Trust (SLV) was off 1.9%.

Two bear-market ETFs that had bulked up on assets in the first quarter to join the 50 largest got creamed, both because they represent the inverse of winning indices and because they are leveraged to twice the scale. UltraShort S&P 500 ProShares (SDS) sank 10.0%, and UltraShort Financials ProShares (SKF) tumbled 14.1%.

The ETF 50 Index™ is ahead 2.1% in the last three months, down 3.9% year to date, and behind 0.9% over the last 12 months.

The ETF 50 Index™ represents the price-only asset-weighted price performance of the 50 largest exchange-traded funds. The index consists of a broadly diversified universe of funds representing domestic and foreign stocks, bonds and commodities, and is a better indicator of actual investor returns than indices tied to particular markets.