Inverse U.S. Equity & Long-Term Treasury: Two ETFs Trading With Outsized Volume

In the last trading session, U.S. stocks were in the red as China-led growth worries and massive crashes in oil prices handicapped the market. Among the top ETFs, investors saw SPY and DIA lose about 2.4% each and QQQ move lower by more than 3.1% on the day.

Two more specialized ETFs are worth noting in particular though 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 ones to watch out for in the days ahead to see if this trend of extra interest continues:


ProShares Short S&P500 (SH - ETF report): Volume 4.24 times average

This U.S. inverse equity ETF was under the microscope yesterday as nearly 19 million shares moved hands. This compares to an average trading day of 4.51 million shares and came as SH added about 2.3% in the session.

The movement was due to the bloodbath in the market caused by the ripple effect of the hard landing fear in China and the oil price plunge. SH was up over 5.6% in the past one-month period.

iShares 10-20 Year Treasury Bond (TLH - ETF report): Volume 4.17 times average

This long-term U.S. treasury ETF was in focus yesterday as roughly 168,000 shares moved hands compared to an average of roughly 40,300 shares. We also saw some stock price movement as shares of TLH advanced over 0.2% yesterday.

A significant plunge in long-term bond yields following a flight to safety favored the long-term U.S. treasury bonds like what we find in this ETF portfolio. The fund has a Zacks ETF Rank #3 (Hold). However, in the last one month, TLH was up about 0.8%. 

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