At midday, all three major U.S. stock indices were lower by at
least one percent.
The combination of subpar earnings, weak economic numbers, and
negative news from China were all lending to the big selling.
Other than the precious metal stocks, there was not one major
sector in the green for the day. In other words it was difficult
to find ETFs that were not trading lower.
Difficult, but not impossible.
The WisdomTree Europe Small Cap Dividend ETF (NYSE:
) was slightly higher after being up as much as one percent in
early trading. The diverse small cap ETF has its most exposure to
the U.K., Sweden, and Italy.
With a better than expected Eurozone manufacturing number this
morning, it has helped the stocks across the pond out perform.
The early morning rally in the ETF has it within a few pennies of
a new six-year high. Over the last twelve months the ETF is up 39
What Spooked The Market?
The First Trust ISE Cloud Computing ETF (NYSE:
) was also trading with a small gain at midday as it was able to
distance itself from the market wide selling in technology
stocks. A big move in one of the ETFs top five holdings was the
catalyst for the relative strength today. F5 Networks (NASDAQ:
) was up over 10 percent at one point in the early morning
trading, hitting a new 52-week high.
The Global X SuperIncome Preferred ETF (NYSE:
) was up a couple pennies on the day. The ETF is built for
investors that are seeking income as the daily movements are
minimal. A portfolio of 50 of the highest yielding preferred
stocks in the U.S. and Canada make up the ETF that currently
yield 7.0 percent.
The ETF is at the same level it was seven months ago and in
essence if the ETF continues to move sideways it will generate a
7 percent return annually in dividend payments. SPFF is the type
of investment that works well as a hedge against market sell-offs
and lowers overall risk of a portfolio.
The top performing single-country ETF today is the iShares
MSCI Spain ETF (NYSE:
). The country reported its second straight quarter of GDP growth
with a gain of 0.3 percent in the fourth quarter. While Spain is
officially out of recession, the country is still dealing with an
unemployment rate of 26 percent. But the good news out of the
Eurozone and the GDP were enough to attract buyers on a bearish
day for the global stock markets. The chart for EWP is bullish
and if it continues to hold support at $39, the short-term
uptrend remains intact.
(c) 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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