Tech ETFs Lead Broad Gains Among Peers

  • May 21, 2001
  • Loren Fleckenstein

ETF Land continued Monday to enjoy
broad upside with the downside limited to moves well within the recent trading
ranges of the affected exchange-traded funds. Tech led again.

The Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating)
jumped 9.7% on active trade, the day’s biggest gain among the exchange-traded
funds. Among its components, VeriSign
(
VRSN |
Quote |
Chart |
News |
PowerRating) rallied 11.4% after the
federal government approved a deal allowing the Internet addressing company to
keep control of the “.com”  Web domain. Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) rose
11.1%, BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating) 8.2%, Ariba
(
ARBA |
Quote |
Chart |
News |
PowerRating) 5.5%.

 

The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
gained 8.8%, the Morgan Stanley Internet streetTRACKS
(
MII |
Quote |
Chart |
News |
PowerRating) 7.5%, the
Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 6.7%, the B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) 6.6%, the
Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 6.6%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 6.3%,
the Software HOLDR
(
SWH |
Quote |
Chart |
News |
PowerRating) 5.3%.

On the downside, the Dow Jones
Consumer Non-Cyclical iShares
(
IYK |
Quote |
Chart |
News |
PowerRating) gave up 1.0%, the only tradable fund to
lose 1% or more Monday.

Exchange-traded
funds combine traits
of stocks and mutual funds. Like mutual funds, an ETF represents diversified
ownership in a number of different stocks. 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 can find further information, including
component stocks, at the following sites: www.amex.com
(click on the HOLDRS and Exchange-Traded Funds links), www.ishares.com
and www.holdrs.com.

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