Tech ETFs Move Ahead

  • April 19, 2001
  • Loren Fleckenstein

The tech-focused tradable funds forged
further ahead Thursday while volume contracted. The downside was limited,
although the utility-focused exchange-traded funds ran into headwinds.

The Internet Infrastructure HOLDR
(
IIH |
Quote |
Chart |
News |
PowerRating)
gained 19.1%, the day’s sharpest gain among the ETFs. Among its component
stocks, Akamai Technologies
(
AKAM |
Quote |
Chart |
News |
PowerRating) 39.4%, BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating) 18.1%,
Broadvision
(
BVSN |
Quote |
Chart |
News |
PowerRating) 23.7%, Inktomi
(
INKT |
Quote |
Chart |
News |
PowerRating) 29.6%, Verisign
(
VRSON |
Quote |
Chart |
News |
PowerRating)
8.3%.

The B2B Internet HOLDR
(
BHH |
Quote |
Chart |
News |
PowerRating) moved
ahead 15.8%, the Broadband HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) 9.4%, the Software HOLDR
(
SWH |
Quote |
Chart |
News |
PowerRating)
9.4%, the Internet Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 9.4%, the Dow Jones Technology
iShares
(
IYW |
Quote |
Chart |
News |
PowerRating) 8.5%, the Nasdaq 100 Tracking Stock
(
QQQ |
Quote |
Chart |
News |
PowerRating) 8.1%, the
Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating) 6.9%, the Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) 6.4%.

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 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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