Wall Street Sees Worst Day In 8 Months: ETF Winners & Losers

Market Impact

The hot and soaring technology segment went into a freefall with the S&P Technology sector tumbling 4.8%. Investors have been shifting their focus away from growth-fueled strategies to value and defensive stocks. Amazon AMZN has been the biggest drag plunging 6.2%, its worst one-day loss since 2016 while Apple AAPL dropped 4.8% in yesterday session.

While all the tech ETFs saw terrible trading, Advisorshares New Tech and Media ETF FNG stole the show, tumbling 6.8%. Global X Fintech Thematic ETF FINX and 3D Printing ETF PRNT saw decline of 5.8% each.

The communications services, consumer discretionary, energy and industrial sectors also dropped more than 3%. Energy ETFs saw steep declines as SPDR S&P Oil & Gas Equipment & Services ETF XES and Invesco Dynamic Oil & Gas Services Fund PXJ dropped 6.1% and 5.8%, respectively. XES has a Zacks ETF Rank #3 (Hold) while PXJ carries a Zacks ETF Rank #4 (Sell) (read: ETFs That Tend To Win & Lose When Rates Rise).

The CBOE Volatility Index (VIX), also known as the fear gauge, jumped 44% to 22.96 — the highest close since April 2. This is the first time since April 11 that the fear index has gone above 20. As a result, volatility ETFs outperformed in yesterday’s trading session with iPath Series B S&P 500 VIX Short-Term Futures ETN VXXB gaining 16.7%. VelocityShares Daily Long VIX Short-Term ETN VIIX and ProShares VIX Short-Term Futures ETF VIXY was also up 16.5% each.  

Gold and gold-mining ETFs were up on investors’ drive to safe haven assets. Acting as leveraged plays on underlying metal price, gold miners witnessed more gains than their bullion cousins. That said, iShares MSCI Global Gold Miners ETF RING gained the most, rising 1.8%, while Market Vectors Gold Mining ETF GDX climbed 1.3% (read: Gold in Longest 4-Year Losing Streak: Go Short with ETFs).

Defensive sector such as utilities and consumer staples lose less as these act as a safe haven amid market turmoil. Stocks in these sectors generally provide higher returns in troubled times. Utilities fell 0.5% while consumer staples lost more than 1%.

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