Large Cap And Short-Term Treasury: 2 ETFs To Watch On Outsized Volume

In the last trading session, the U.S. stocks yet fell again on continued uncertainty about China and the Fed policy. In fact, the Dow Jones logged in the worst monthly losses since May 2010 while the S&P 500 and the Nasdaq Composite Index lost the most in three years. Among the top ETFs, investors saw (SPY – ETF report) lose 0.8%, (DIA – ETF report) shed 0.7% and (QQQ – ETF report) move lower by 1.2% on the day.

Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most recent trading session. This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra-interest continues:

(IWB – ETF report): Volume 3.26 times average

 This large cap ETF was in focus yesterday as about 3.4 million shares moved hands compared to an average of roughly 1.1 million shares. We also saw some price movement as IWB lost 0.8% in the last session.

The movement can largely be blamed on increasing volatility in the stock market that arises from the double whammy of flagging growth in China and the uncertain timing of the Fed rate hike. For the past one-month period, IWB was down nearly 6%. The fund currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

(SHV – ETF report): Volume 3.21 times average

This short-term Treasury bond ETF was under the microscope yesterday as about 2.4 million shares moved hands. This compares to an average trading day of around 782,000 shares and came as SHV added 0.1% in the session.

The big move was largely the result of investors’ taking flight to safety in an uncertain global economy and prospects of a rates hike. SHV was almost flat in the past one month and currently has a Zacks ETF Rank #3 with a Low risk outlook.

Get the latest research report on QQQ – FREE

Get the latest research report on SPY – FREE