Active and Unleveraged: 5 ETFs Before The “Jobs Report”
03 December 2009 at 2:02 pm by Gary Gordon
On Thursday, 12/3/09, at “High Noon” on the West Coast, the markets had been straddling the flat line. I turned to my colleague and said, “I’m going for a short lunch. I’ll be back well before 1:00 p.m. to get a feel for the severity of the selling pressure at the close of market.”
It wasn’t arrogance that led me to suggest that a “fade” was imminent; rather, the active trading participants that move major indexes were not about to be caught holding the bag with a strong possibility of unemployment ticking higher in the “Jobs Report.”
Here, then, was the ”Price Range Volatility” for 5 of the most actively traded ETFs on 12/3/2009:
| 5 Actively Traded ETFs And Their Respective Intra-Day Price Range Volatility | ||||||
| High | Low | % | ||||
| SPDR S&P 500 Trust (SPY) | 112.18 | 110.29 | 1.7% | |||
| SPDR Select Financials (XLF) | 14.94 | 14.33 | 4.1% | |||
| PowerShares Nasdaq 100 (QQQQ) | 44.50 | 43.88 | 1.4% | |||
| iShares Emerging Markets (EEM) | 42.31 | 41.39 | 2.2% | |||
| iShares Russell 2000 (IWM) | 60.37 | 58.93 | 2.4% | |||
In truth, there’s very little out-of-whack with regard to volatility expectations. SPDR Select Financials Fund (XLF) continues to be a crap shoot… with 2x the volatility of other benchmarks. In fact, the one-day movement of XLF is not at all dissimilar to the 3-month, 6-month and 1-year standardized volatility that one might encounter at RiskGrades.com.
If you’d like to learn more about ETF investing… then tune into “In the Money With Gary Gordon.” You can listen to the show “LIVE”, via podcast or on your iPod.
Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. The company and/or its clients may hold positions in the ETFs, mutual funds and/or index funds mentioned above. The company does not receive compensation from any of the fund providers covered in this feature. Moreover, the commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.
Tags | "active etf", "etf volatility", "trade etf"
