More Tech Gains
The tech-focused tradable funds moved
further ahead Thursday, with some of the exchange-traded funds nearing their
50-day moving averages.
The Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) gained
9.6%, the day’s biggest gain among the exchange-traded funds. Among its
components, Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating) rose 14.6%, Applied Micro Circuits
(
AMCC |
Quote |
Chart |
News |
PowerRating)
13.5%, Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating) 14.4%, Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) 11.3%, Comverse Technology
(
CMVT |
Quote |
Chart |
News |
PowerRating) 8.8%.
The Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
added 7.2%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 5.1%, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating)
4.8%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 3.6%, the Software HOLDR
(
SWH |
Quote |
Chart |
News |
PowerRating) 3.4%, the
Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating) 3.3%, the Dow Jones Technology iShares
(
IYW |
Quote |
Chart |
News |
PowerRating)
3.1%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 3.1%.
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.
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.