The steep drop in the markets this week was a wake-up call for
investors who might have become accustomed to a sense of
complacency in stocks this summer.
The SPDR S&P 500 ETF (NYSE:
) fell 1.97 percent on Thursday amid heavy selling pressure and
followed that up with additional weakness on Friday as well.
The following ETFs represent a sample of the best and worst
performing funds over the last five trading sessions:
BEST: Volatility Indexes
Not surprisingly, this uncharacteristic drop in the markets
prompted traders to hedge their positions with aggressive options
bets that led to a jump in the CBOE VIX Volatility Index. As a
result, the ProShares VIX Short-Term Futures ETF (NYSE:
) jumped more than 15 percent this week.
VIXY is designed to track near-term VIX futures contracts,
which are a measure of expected volatility in the S&P
500. The fund charges an expense ratio of 0.85 percent, and
currently has more than $110 million in total assets.
Argentina ETF Drops On Sovereign Default
This ETF is different than other exchange-traded products that
invest in volatility futures, because it is backed by tangible
assets in a commodity pool rather than being organized as an
exchange-traded note. However, this structure does require the
issuance of a K-1 for tax reporting purposes.
The iPath S&P 500 VIX Short-Term Futures ETN (NYSE:
) also moved significantly higher as a result of this jump in
WORST: Solar Stocks
Solar energy stocks were one of the hardest-hit sectors of the
week, with the Market Vectors Solar Energy ETF (NYSE:
) falling nearly 9 percent. The fund is now treading water near
the flat line for the year in total return as well.
This ETF tracks 34 global companies engaged in the production,
installation and maintenance of solar products. KWT currently has
over $27 million in assets and charges a net expense ratio of
The Guggenheim Solar ETF (NYSE:
) is s similar ETF in this space, that also endured a significant
drop this week.
Both solar and volatility indexes are known for being fast
movers, which is why a rebound next week may lead to another big
divergence in these high beta sectors.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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