Net ETFs Rally
The Net-focused tradable funds
rebounded off their lows Thursday, leading a rally in nearly all the
exchange-traded funds.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
bounced 21.2%, the day’s biggest gain among the exchange-traded funds. Volume,
while above average, was dwarfed by activity in the prior-session sell-off.
Among its component stocks, Akamai
(
AKAM |
Quote |
Chart |
News |
PowerRating) ran up 25.0%, BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating)
31.1%, Exodus Communications
(
EXDS |
Quote |
Chart |
News |
PowerRating) 25.3%, VeriSign
(
VRSN |
Quote |
Chart |
News |
PowerRating) 10.8%.
The Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
jumped 15.4%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 15.1%, the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating)
12.7%, the Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 10.5%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating)
10.4%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 10.0%, the Nasdaq 100 Tracking
Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 9.4%, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) 6.2%.
The Industrial SPDR
(
XLI |
Quote |
Chart |
News |
PowerRating) rose
5.9%, the Dow Jones Industrial iShares
(
IYJ |
Quote |
Chart |
News |
PowerRating) 5.5%, the Diamonds
(
DIA |
Quote |
Chart |
News |
PowerRating)
4.3%.
The Financial SPDR
(
XLF |
Quote |
Chart |
News |
PowerRating) picked up
4.1%, the Dow Jones Financial Services iShares
(
IYG |
Quote |
Chart |
News |
PowerRating) 3.9%, the Dow Jones
Financial iShares
(
IYF |
Quote |
Chart |
News |
PowerRating) 3.3%.
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.