Net ETFs Sink, Manufacturing ETF Strong
The Net-focused tradable funds tumbled
with their component stocks Thursday after Yahoo’s overnight report that Q1
results failed to meet previously lowered expectations.
The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
shed 8.7%, the days sharpest loss among the exchange-traded
funds. Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 8.7%, the B2B Internet
HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 8.5%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 3.7%, the
Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 3.2%.Â
Elsewhere, the Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating)
declined 3.0%, the Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 1.9%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 1.8%, the Wireless HOLDR
(
WMH |
Quote |
Chart |
News |
PowerRating) 1.7%.
On the upside (if you can call it
that), the Software HOLDR
(
SWH |
Quote |
Chart |
News |
PowerRating) rose 4.0%. The defensives edged up, the Dow
Jones Consumer Non-Cyclical iShares
(
IYK |
Quote |
Chart |
News |
PowerRating) 1.9%, the Utilities SPDR
(
XLU |
Quote |
Chart |
News |
PowerRating)
1.9%, the Pharmaceutical HOLDR
(
PPH |
Quote |
Chart |
News |
PowerRating) 1.6%, the Dow Jones Healthcare iShares
(
IYH |
Quote |
Chart |
News |
PowerRating).
The Dow Jones Basic Materials iShares
(
IYM |
Quote |
Chart |
News |
PowerRating) added 1.9%, a move in line with the move in Phase 2 stocks discussed
in my Trading
The News commentary.
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.
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.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.
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