Tech ETFs Slump Again
The Nasdaq bear continued Thursday to gnaw away at the tech-focused tradable funds, although most of the
session’s moves came on inconsequential volume.
The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) fell
11.6%, the day’s biggest loss among the exchange-traded
funds.Â
Among the HOLDR’s component stocks,
Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) dropped 15.4%, PurchasePro.com
(
PPRO |
Quote |
Chart |
News |
PowerRating) 15.3%, Agile
Software
(
AGIL |
Quote |
Chart |
News |
PowerRating) 12.5%, VerticalNet
(
VERT |
Quote |
Chart |
News |
PowerRating) 10.8%.
The Dow Jones Internet
iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) lost 6.5%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 5.9%, the Nasdaq 100
Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 5.8%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 5.4%, the
Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) 4.6%.
All charts in this commentary use a
logarithmic scale. Daily charts display 50-day moving averages of price (in red)
and of volume (in blue). Some daily charts may also display a 200-day moving
average (in black).
Exchange-traded funds combine traits
of stocks and mutual funds. Like mutual funds, an ETF represents diversified
ownership in a number of different stocks, greatly reducing company-specific
risk. Like stocks, ETFs trade on exchanges, nearly all of them in fact trade on
the American Stock Exchange at present. They quote throughout the day, enabling
traders to take advantage of intraday price moves.
If you’re new exchange-traded funds,
be sure to visit TradingMarkets’ Knowledge Center,
dedicated to explaining the basics of trading and active investing in ETFs and
mutual funds. Just click on the Funds tab
near the top of this page, then click on the Knowledge
Center tab.Â
You also will find lessons on trading
exchange-traded funds in the Stocks Education area of TradingMarkets.com. In
particular, check out my three-part series on trading ETFs, starting with
Average Crossovers. I also recommend newcomers read my tutorial,
HOLDRs: Unique Opportunity And Risk.
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