Broad Gains In ETFs
The exchange-traded funds had a good
day, with financial and technology-related funds managing gains along with basic
industry funds. Pressure remained on the utilities.
The Morgan Stanley Internet Index Fund
(
MII |
Quote |
Chart |
News |
PowerRating) gained 9.4%, the day’s largest gain among the exchange-traded
funds. The Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) rose 4.4% and the
Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) rose 3.2%.
The tradable funds got a lift from
eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating). Shares rallied 9.4% after the Internet auction site Tuesday
said it would raise listing fees and tack on a new fee of 10 cents for sellers using
the 10-day listing option. The move follows a move by Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) to start
charging fees for its auctions.
Among the other ETFs, the Dow Jones
Basic Materials iShares
(
IYM |
Quote |
Chart |
News |
PowerRating) added 3.1%, the Dow Jones Chemical iShares
(
IYD |
Quote |
Chart |
News |
PowerRating)
2.9%, the Internet Infrastructure HOLDRs
(
IIH |
Quote |
Chart |
News |
PowerRating) 2.5%, and the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) were up 2.5%.
The rate-sensitive tradable funds had
a decent day. The Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) rose 2.1%, the Banking HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating)
1.4%, and the Dow Jones Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating) rose 1.3%.
On the downside, the Utility HOLDR
(
UTH |
Quote |
Chart |
News |
PowerRating)
lost 3.9%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 3.7%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating)
3.5%, and the Dow Jones Utilities iShares
(
IDU |
Quote |
Chart |
News |
PowerRating) dropped 1.9%.
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 in black with a 50-day moving average in blue for volume.
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.
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.