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EAFE and China: Two ETFs Trading with Outsized Volume

Zacks Equity Research

In the past trading session, U.S. stocks managed to hold onto gains in what was overall a rocky session. Among the top ETFs, investors saw SPY gain 0.89%, DIA move higher by 0.88% and QQQ gain 0.83% 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, both these funds experienced volume levels that were more than triple the average for the most recent trading session. This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra-interest continues:


EFO: Volume 8.35 times average.


Leveraged EAFE ETF was in focus yesterday as roughly 16.4 thousand shares moved hands compared with an average of roughly 1.85 thousand. We also saw some share price movement as shares of EFO gained 0.88%.


The fund is heavy on Japan, with 24.1% allocation to the country. The movement can largely be attributed to U.S. Vice President Mike Pence’s visit to Japan and expectations of trade talks. Moreover, the fund has 10.2% exposure to France. A recent Elabe poll on April 17, 2017 showed Emmanuel Macron ahead of Marine Le Pen by a percentage point in the French elections, thus increasing confidence in the economy. For the month, EFO is down 0.98%.


MCHI: Volume 3.73 times average.


This China ETF was under the microscope yesterday as nearly 5.03 million shares moved hands. This compares to an average trading day of 1.35 million shares. MCHI gained over 0.5% in the session.


The big move was largely the result of better-than-expected first-quarter 2017 growth data of 6.9%. For the month, MCHI is down 1.27%. The fund currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.


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ISHARS-MS CH IF (MCHI): ETF Research Reports
 
PRO-ULT MSCI EA (EFO): ETF Research Reports
 
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