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Emerging Markets and Grain: 2 ETFs to Watch on Outsized Volume

Indradip Ghosh

In the last trading session, U.S. stocks gave up most of their early gains to end the session almost flat as investors remained cautious amid Fed’s two-day policy meeting, which is scheduled to start today. Among the top ETFs, investors saw SPY rise a meagre 0.02%, DIA gain only 0.01% and QQQ fell about 0.4% 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:

DVYE: Volume 3.62 times average

This emerging market ETF was under the microscope on Monday as nearly 528,051 shares moved hands. This compares to an average trading volume of 153,480 shares and came as DVYE gained about 1.5% in the session.

A persisting low-yield environment and growing popularity of emerging market securities played a major role in boosting DVYE. Moreover, its focus on investing in stocks with favorable dividend yields also had a positive impact on the ETF. However, in the last one-month period, DVYE declined nearly 0.4%. DVYE has a Zacks ETF Rank #3 (Hold).  

JJG: Volume 3.22 times average

This grain ETF was in focus yesterday as roughly 225,260 shares moved hands compared with an average of roughly 69,950 shares. JJG rose about 0.6% on the day.

Possibility of supply disruptions played a major role in lifting JJG on Monday. It is speculated that significant volume of rains in major grains producing region may result in a delay in harvesting crops. However, in the last one-month period, JJG was down 4%.

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SPDR-DJ IND AVG (DIA): ETF Research Reports
 
SPDR-SP 500 TR (SPY): ETF Research Reports
 
NASDAQ-100 SHRS (QQQ): ETF Research Reports
 
IPATH-BB GRNS (JJG): ETF Research Reports
 
ISHARS-EM DIV (DVYE): ETF Research Reports
 
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