U.S. stocks had a choppy session to open up the week as a lack
of news kept investors focused on China growth concerns and worries
over Washington D.C. policies. As a result, the Dow and the Nasdaq
both fell by about 0.4% while the S&P 500 slumped by 0.2% on
No one sector really stood out during Monday's session, although
investors did see strength in the basic materials segment and a
number of pharma and utility names. Meanwhile, some consumer
companies along with a number of industrial goods makers, saw
weakness, while JPM led the financials lower, losing about 2.7% on
the day (see
Beware These Three Volatile Financial ETFs
Investors did see small inflows into the Treasury bill market as
the 10 year saw yields slump by about two basis points on the
session. Commodities, on the other hand, continued to rebound as
strength was seen in oil (but not natural gas), while grains were
solid performers once more, led by 4.0%+ moves in both the corn and
the wheat markets.
For ETF volume, trading levels were depressed once again across
the board. Major equity products traded about half their normal
volume, while investors saw similar levels in many major emerging
market and commodity products as well.
However, a few funds bucked this trend, including several in the
agricultural space such as the
iPath DJ-UBS Grains TR Sub Index ETN (
. The product usually does volume of about 70,000 shares in a
normal session but saw a spike to just over 270,000 shares today
Beat the Heat with These Three ETFs
The reason for this increase in volume was undoubtedly the
continued surge in grain prices, led by corn and wheat once again.
Thanks to these two crops, JJG added another 4.2% today, pushing
the fund higher by over 37% in just the past month alone.
Another segment which saw outsized volume on the day was in the
small cap growth ETF market. A number of products in this space saw
a great deal of interest including the
iShares S&P Small Cap 600 Growth Fund (
which saw volume more than three times the daily average (read
Guide to Small Cap Emerging Market ETFs
Interestingly, most of the volume came due to a few block trades
right after 10:00am when the product was at its low for the day.
These two trades accounted for more than half of the total volume
in the fund, although the ETF did still finish the day lower by
0.4%, the same as the broad market despite the increase in
(see more in the
ISHARS-SP SC GR (IJT): ETF Research Reports
IPATH-DJ-A GRNS (JJG): ETF Research Reports
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