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Commodity & Qatar: 2 ETFs to Watch on Outsized Volume

Indradip Ghosh

In the last trading session, the major U.S. benchmarks ended in the red following a decline in oil prices amid a rise in crude inventories and a stronger dollar. Moreover, better-than-expected private jobs data fueled rate hike chances further, which in turn had a negative impact on investor sentiment. Among the top ETFs, investors saw SPY lose about 0.3%, DIA decline around 0.3% and QQQ decrease about 0.1% on the day.

Two more specialized ETFs are worth noting in particular though as both saw trading volume that was far outside of normal. In fact, in the most recent trading session, both these funds experienced volume levels that were more than double their average. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra interest continues:

DBC: Volume 5.94 times average

This commodity ETF was under the microscope on Wednesday as nearly 13 million shares moved hands compared to an average trading volume of 2.3 million shares. We also saw some share price movement as shares of DBC lost 1.8% today.

The movement came largely on the back of a decline in oil prices due to its significant exposure to this commodity. Rising rate hike possibilities, which led the greenback to increase against major currencies recently, and rise in crude inventory, played a major role in dragging oil prices down. However, for the month, DBC gained 2.6%.

QAT: Volume 3.88 times average

This Qatar ETF was under the microscope on Wednesday as more than 22,700 shares moved hands. This compares to an average trading day of 5,860 shares and it came as QAT gained around 1.8% on the session.

The big move was largely the result of a decline in broader Qatar indexes. Overvaluation concerns emerged as the main factor behind the decline in Qatar stock market.  Despite the decline, QAT was up 5.5% over the past one month.

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