Technology and volatility: 2 ETFs to watch for excessive volume
IIn the last trading session, Wall Street saw tumultuous trading, with all three benchmarks recording the biggest daily loss in months. Growth concerns have intensified along with a host of challenges. Among the major ETFs, SPY lost 1.7%, DIA lost 1.8% and QQQ was down 2% on the day.
Two other specialist ETFs are worth noting, as they both recorded well-outside-normal trading volume. In fact, both of these funds experienced volume levels that were more than double their average for the most recent trading session. This could make these ETFs the ones to watch in the days ahead to see if this trend of additional interest continues.
VGT: volume 4.17 times the average
This technology ETF was in the spotlight as around 2.3 shares were traded for an average of 530,000 shares per day. We also saw some price movement as VGT lost 1.9% in the last session.
This move was largely the result of a negative news flow that could have a big impact on tech stocks like the ones we find in this ETF portfolio. VGT has lost 1.3% in the past month and carries a Zacks Rank # 1 (strong buy) ETF with a medium risk outlook.
VXX: volume 3.64 times the average
This volatility ETF was under the microscope as nearly 101.8 million stocks changed hands. This compares to an average trading volume of around 27 million shares and came as VXX jumped almost 11% in the last trading session.
The move can largely be blamed on concerns over financial contagion from the potential default of Chinese real estate group Evergrande, which suffers a hefty $ 150 million bond payment debt later this week. VXX gained 7.1% in one month.
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Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average (DIA) ETF: ETF Research Reports
iPath Series B S&P 500 VIX Short Term Futures ETN (VXX): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
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