Technology and Volatility: 2 ETFs to Watch for Outsized Volume
In the last trading session, Wall Street saw tumultuous trading with the three benchmarks logging in the largest daily loss in months. Growth worries intensified with a host of challenges. Among the top ETFs, SPY shed 1.7%, DIA lost 1.8% and QQQ moved 2% lower 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.
VGT: Volume 4.17 Times Average
This technology ETF was in the spotlight as around 2.3 shares moved hands compared with an average of 530,000 shares a day. We also saw some price movement as VGT lost 1.9% in the last session.
The move was largely the result of a negative news flow that could have a big impact on technology stocks like the ones that we find in this ETF portfolio. VGT has shed 1.3% over the past month and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
VXX: Volume 3.64 Times Average
This volatility ETF was under the microscope as nearly 101.8 million shares moved hands. This compares with an average trading volume of roughly 27 million shares and came as VXX surged nearly 11% in the last trading session.
The movement can largely be blamed on concerns over the financial contagion of the potential failure of China’s Evergrande property group, which is under a major debt burden of $150 million in bond payments later this week. VXX has gained 7.1% in a month’s time.
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