Tech ETFs Ride Accumulation Day
Another accumulation day on the Nasdaq
propelled the tech-focused exchange-traded funds higher.
The B2B Internet HOLDR
(
BHH |
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Chart |
News |
PowerRating)
advanced 8.3%, the day’s sharpest gain among the exchange-traded
funds. Among its largest components, Commerce One
(
CMRC |
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PowerRating) rose
9.2%, Ariba
(
ARBA |
Quote |
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PowerRating) 8.2%, Internet Capital Group
(
ICGE |
Quote |
Chart |
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PowerRating) 19.4%.
The Internet Infrastructure HOLDR
(
IIH |
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News |
PowerRating)
rallied 5.6%, the Dow Jones Internet iShares
(
IYV |
Quote |
Chart |
News |
PowerRating) 4.4%, the Internet
Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) 4.2%, the Dow Jones Technology iShares
(
IYW |
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News |
PowerRating)
3.1%, the Technology SPDR
(
XLK |
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PowerRating) 2.5%, the Internet HOLDR
(
HHH |
Quote |
Chart |
News |
PowerRating) 2.3%.
The Biotech HOLDR
(
BBH |
Quote |
Chart |
News |
PowerRating) moved
ahead 4.7%. The basket of biotechs got a boost from Affymetrix
(
AFFX |
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PowerRating) which ran up 32% after news that a British appeals court had
reversed an earlier ruling and found in favor of the company of its rights to
use certain gene research technology.
The positive market breadth was
reflected in the small-cap index ETFs. The Russell 2000 Growth iShares
(
IWO |
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News |
PowerRating)
added 3.2%, the Russell 2000 iShares
(
IWM |
Quote |
Chart |
News |
PowerRating) 2.4%.
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.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 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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