A Bounce For The ETFS
Among the exchange-traded funds, the
bloodied Nets got an overdue bounce Friday while the defensives gave back a tad.
The financial-focused tradable funds held up.
The Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
gained 15.7%, the day’s biggest rise among the ETFs.  Â
Among the index share’s largest
components, Verisign
(
VRSN |
Quote |
Chart |
News |
PowerRating) moved ahead 18.1%, America Online
(
AOL |
Quote |
Chart |
News |
PowerRating)
1.7%, Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) 15.4%, BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating) 19.4%, Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating)
14.1%.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
rose 12.7%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 12.2%, the B2B Internet
HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 11.0%, the Dow Technology Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 10.4%,
the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 7.9%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating)
6.8%, the Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 6.8%.
On the downside, the Pharmaceutical
HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) gave up 2.0%.
The top field of all charts in this
commentary uses a logarithmic price scale and displays a 50-day price average in
red. In the second field, a
blue relative strength line represents the displayed security’s price
performance relative to the S&P 500. The third field displays vertical daily
volume bars with a 50-day moving average in blue for volume.
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 to 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.