Exchange traded funds tied to the major U.S. equity indices rebounded this week along with Treasury yields as they try to climb back above their major trendlines.
In afternoon trading Friday, the S&P 500 was on track for a 3.5% weekly gain, the Dow climbed 3.5% and the Nasdaq Composite added 3.8%. All three benchmarks were slightly above their 200-day exponential moving averages.
Stocks enjoyed an oversold bounce this week with bond yields. The iShares Barclays 20+ Year Treasury Bond Fund (TLT) was set for a loss of more than 3% this week.
A pullback in volatility-linked ETFs this week signals fear is receding somewhat after the recent sell-off in riskier assets on Eurozone debt concerns.
Gold ETFs were choppy this week and poised to close with losses of about 2% as the precious metal tests the $1,600 an ounce level.
Gold seems to be moving on speculation of more quantitative easing from the Federal Reserve and other central banks. [Investors Returning to Gold ETFs]
“The Beige Book indicated that the economic condition was better than what was priced in with the weak payrolls data, and that removed some of the premium based on an imminent Fed action,” said Frank McGhee at Integrated Brokerage Services in a Reuters report.
The top three unleveraged ETFs this week were iShares MSCI Spain (EWP), iShares MSCI Poland (EPOL) and Market Vectors Russia (RSX) with gains of at least 7% in afternoon trade Friday.
The bottom three unleveraged ETFs this week were PIMCO 25+ Year Zero Coupon US Treasury (ZROZ), Vanguard Extended Duration Treasury (EDV) and Active Bear ETF (HDGE ) with losses of more than 4%.
Next week’s U.S. economic data features reports on import and export prices, the federal budget, producer prices, retail sales, consumer prices and industrial production.
iShares S&P 500 (IVV)