GDP Lifts Financial ETFs

• October 27, 2000
• Loren Fleckenstein

Evidence of
slowing growth buoyed financial stocks, levitating the
financial exchange-traded funds while most of the tech funds
pulled back.

The Financial SPDR
(
SPDR |
Quote |
Chart |
News |
PowerRating) gained 3.3%, the Dow Jones Financial Services
iShares
(
IYG |
Quote |
Chart |
News |
PowerRating) 2.5%, the Dow Jones Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating)
2.5%, the Banking HOLDR
(
RKH |
Quote |
Chart |
News |
PowerRating) 1.7%.

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I am somewhat
skeptical of these moves. When you look at the actual stocks
lifting the rate-sensitive href=”/.site/funds/feducation/basicknwg/02292000-4509.cfm”>exchange-traded
funds, you’ll notice that most of the moves came on
middling to anemic trading volume. For more on this angle,
check out my href=”/.site/stocks/commentary/lfatshow/10262000-9564.cfm”>Trading
The News.

Most of the tech
ETFs headed south. Exceptions were the Dow Jones Internet
iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) added 5.0%, the Telecom HOLDR
(
TTH |
Quote |
Chart |
News |
PowerRating)
3.4%, the Dow Jones Telecommunications
(
IYZ |
Quote |
Chart |
News |
PowerRating) 2.9%.

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On the downside,
the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) fell 6.0%, the Internet
Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) 5.7%, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating)
3.1%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 1.8%.

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If you’re new to
exchange-traded funds, be sure to visit TradingMarkets’ color=”#0000FF”>Knowledge Center, dedicated to
explaining the basics of trading and active investing in
ETFs and mutual funds. Just click on the color=”#0000FF”>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 href=”/.site/stocks/education/strategies/05262000-6129.cfm”>Moving
Average Crossovers. I also recommend newcomers read my
tutorial, href=”/.site/stocks/education/strategies/06272000-6815.cfm”>Trading
HOLDRs: Unique Opportunity And Risk.

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you have a follow-up question about something in this column
or other questions about trading stocks, futures, options or
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