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Large-Cap Value and Short-Term Treasury: 2 ETFs to Watch on Outsized Volume

Zacks Equity Research

In the last trading session, U.S. stocks rose for a third day, as investors expect more accommodative policies from global central banks post Brexit vote. Among the top ETFs, investors saw SPY gain 1.36%, DIA move higher 1.34% and QQQ rise 1.16% on the day.

Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both 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 out for in the days ahead to see if this trend of extra-interest continues:

VONV: Volume 6.98 times average

This U.S. large-cap value ETF was in focus yesterday as roughly 265,000 shares moved hands compared to an average of roughly 38,000 shares. We also saw some stock price movement as VONV gained 1.6%.

The movement can largely be attributed to risk-on trade sentiment brought on by the rise in U.S. stocks that can have a big impact on the large-cap value stocks like what we find in this ETF’s portfolio. VONV was up 0.7% in the past one month and has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook.

SHV: Volume 5.27 times average

This short-term Treasury bond ETF was under the microscope yesterday as about 3.6 million shares moved hands. This compares to an average trading day of around 689,000 shares and came as SHV remained broadly flat in the session.

The big move was largely the result of treasury yields still remaining near multiyear low in an uncertain global economy. SHV gained 0.1% in the past one month and currently has a Zacks ETF Rank #3 with a Medium risk outlook.

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