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Treasury ETFs Fall on Week as S&P 500 Sets New High


Treasury ETFs were among the worst performers this week as investors continue to favor riskier assets and the S&P 500 pushes to fresh record highs in the wake of the April jobs reprt.

Vanguard Extended Duration Treasury ETF (EDV) lost 3% this week to close below its 50-day moving average.

Meanwhile, sector ETF performance in May reveals investors are favoring cyclical stocks in place of defensive industries, a change from the dominant trend in 2013. [Some Sector ETF Charts Pointing to a Cyclical Rotation]

In the major U.S. indices, the S&P 500 gained 1.2% this week, the Dow added 1% and the Nasdaq Composite climbed 1.7%. The stock market enjoyed its third straight week of gains.

“People are seeing light at the end of the tunnel,” Larry Kantor, head of research at Barclays, told Bloomberg. “We would not be surprised to see a correction but we would be a buyers on dips because of the tremendous monetary policy and the fact that the economy is growing.”

The top three unleveraged ETFs this week were Market Vectors Rare Earth/Strategic Metals (REMX), Global X Uranium (URA) and Guggenheim Global Solar Energy (TAN) with gains of 5% or more.

The bottom three unleveraged ETFs this week were Teucrium Corn (CORN), U.S. Natural Gas (UNG) and Active Bear ETF (HDGE) with setbacks of over 3%.

Next week’s economic data features reports on retail sales, business inventories, import and export prices, producer prices, industrial production, consumer prices, homebuilder confidence, housing starts and consumer sentiment.

Vanguard Extended Duration Treasury ETF