2 ETFs to Watch for Outsized Volume on Small-Cap and Tech

In the last trading session, U.S. stocks ended lower on worries over the outlook for interest rates and the economy. Among the top ETFs, SPY lost 1.6% and DIA shed 1%, while QQQ moved 3% lower 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 the ones to watch out for in the days ahead to see if this trend of extra-interest continues.

VB: Volume 5.02 Times Average

This small-cap ETF was in the spotlight as around 1.8 million shares moved hands compared with an average of a million shares a day. We also saw some price movement as VB lost 2.1% in the last session.

The move was largely the result of a strong dollar that could have a big impact on the healthcare stocks like the ones we find in this ETF portfolio. A strengtehning dollar provides an edge to the domestic-focused companies as small caps do not have much exposure to the international market. VB has plunged 10.9% over the past month and carries a Zacks ETF Rank #2 (Buy).

VGT: Volume 2.76 Times Average

This technology ETF was under the microscope as nearly 1.7 million shares moved hands. This compares with an average trading volume of roughly 865,000 shares and came as VGT plunged 3.4% in the last trading session.

The movement can largely be blamed on the inflation data, which signals further rate hikes that would continue to  hit growth stocks. VGT is down 11.4% in a month’s time and has a Zacks ETF Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.