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In the last trading session, Wall Street delivered upbeat performances probably due to chances of a less-hawkish Fed decision this week as well as the U.S. Treasury Secretary Janet Yellen’s assuring comments related to the country’s banking system (read: ETFs in Focus on Fears of Another Global Financial Crisis).
Financial Times reported that the U.S. Treasury Secretary Janet Yellen hinted at further US government backing for deposits at smaller American banks, should the need be. Yellen said that guarantees offered to all depositors at the failed Silicon Valley Bank could be replicated at other institutions if required.
Among the top ETFs, (SPY - Free Report) added about 1.3%, (DIA - Free Report) gained about 1% while (QQQ - Free Report) moved 1.4% higher yesterday. A few more specialized ETFs are worth noting due to their trading volume that was far outside of normal. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra-interest continues.
ETFs in Focus
SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report) ): Volume 8.93 Times Average
This regional banking ETF was in the spotlight yesterday as about 28.14 million shares moved hands. This compares with an average trading volume of roughly 3.57 shares and came as SPYV gained more than 1.2% in the last trading session.
The Fed is likely to hike rates by a quarter point today despite concerns about stress in the banking system. This will push up bond yields and favor value ETFs as this spectrum of the equity investing fares better in a rising rate environment. Also, the fund puts about 20% weight on the financials sector. The latest recovery in that ailing sector might have led to a huge trading volume in the fund.
iShares U.S. Regional Banks ETF (IAT - Free Report) ): Volume 8.23 Times Average
This regional banking ETF was under the microscope yesterday as about 3.1 million shares moved hands. This compares with an average trading volume of roughly 428,800 shares and came as IAT gained 6.5% in the last trading session.
The regional banking ETF suffered a lot since Mar 8 due to the failures of Silicon Valley Bank and Signature Bank. First Republic Bank has also walked the same route as its peers. Large U.S. banks deposited around $30 billion in First Republic Bank to rescue the latter from a widening credit crisis.
Though the liquidity injection too failed to restore investors’ confidence in First Republic Bank initially, regulators’ steadfast efforts arrested the crisis at the right time. Bank worries appeared to ebb yesterday. Yellen’s remarks shored up investors’ confidence in the beaten-down regional banking ETFs.
Invesco S&P Emerging Markets Low Volatility ETF (EELV - Free Report) ): Volume 6.42 Times Average
This emerging market low volatility ETF came to our attention as about 3.92 million shares moved hands yesterday. This compares with an average trading volume of roughly 670,520 shares and came as EELV added about 1% in the last trading session.
Banking crisis in the United States and Europe probably made many investors look toward the emerging markets (EMs) ETFs for profits. Undervaluation, falling Inflation in some EMs, the likelihood of subdued greenback and the reopening of China made the case for EM investing stronger. Still, EM investing requires high risk appetite. Thus, cautious investors went for low-volatility EM ETF (EELV - Free Report) to stay away from the ongoing baking crisis.
Invesco Taxable Municipal Bond ETF (BAB - Free Report) ): Volume 4.70 Times Average
This municipal bond ETF was under the microscope yesterday as about 2.1 million shares moved hands. This compares with an average trading volume of roughly 475,000 shares and came as BAB lost about 0.7% in the last trading session.
The tax season is round the corner, which is why, this municipal bond ETF has probably become the point of investors’ interests. Municipal bonds are excellent choices for investors seeking a steady stream of tax-free income. Usually, the interest income from municipal bonds is exempt from federal tax and may also not be taxable per state laws, making these especially attractive to investors in the high tax bracket looking to reduce their tax liability.
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4 ETFs to Watch on Huge Investor Attention
In the last trading session, Wall Street delivered upbeat performances probably due to chances of a less-hawkish Fed decision this week as well as the U.S. Treasury Secretary Janet Yellen’s assuring comments related to the country’s banking system (read: ETFs in Focus on Fears of Another Global Financial Crisis).
Financial Times reported that the U.S. Treasury Secretary Janet Yellen hinted at further US government backing for deposits at smaller American banks, should the need be. Yellen said that guarantees offered to all depositors at the failed Silicon Valley Bank could be replicated at other institutions if required.
Among the top ETFs, (SPY - Free Report) added about 1.3%, (DIA - Free Report) gained about 1% while (QQQ - Free Report) moved 1.4% higher yesterday. A few more specialized ETFs are worth noting due to their trading volume that was far outside of normal. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra-interest continues.
ETFs in Focus
SPDR Portfolio S&P 500 Value ETF (SPYV - Free Report) ): Volume 8.93 Times Average
This regional banking ETF was in the spotlight yesterday as about 28.14 million shares moved hands. This compares with an average trading volume of roughly 3.57 shares and came as SPYV gained more than 1.2% in the last trading session.
The Fed is likely to hike rates by a quarter point today despite concerns about stress in the banking system. This will push up bond yields and favor value ETFs as this spectrum of the equity investing fares better in a rising rate environment. Also, the fund puts about 20% weight on the financials sector. The latest recovery in that ailing sector might have led to a huge trading volume in the fund.
iShares U.S. Regional Banks ETF (IAT - Free Report) ): Volume 8.23 Times Average
This regional banking ETF was under the microscope yesterday as about 3.1 million shares moved hands. This compares with an average trading volume of roughly 428,800 shares and came as IAT gained 6.5% in the last trading session.
The regional banking ETF suffered a lot since Mar 8 due to the failures of Silicon Valley Bank and Signature Bank. First Republic Bank has also walked the same route as its peers. Large U.S. banks deposited around $30 billion in First Republic Bank to rescue the latter from a widening credit crisis.
Though the liquidity injection too failed to restore investors’ confidence in First Republic Bank initially, regulators’ steadfast efforts arrested the crisis at the right time. Bank worries appeared to ebb yesterday. Yellen’s remarks shored up investors’ confidence in the beaten-down regional banking ETFs.
Invesco S&P Emerging Markets Low Volatility ETF (EELV - Free Report) ): Volume 6.42 Times Average
This emerging market low volatility ETF came to our attention as about 3.92 million shares moved hands yesterday. This compares with an average trading volume of roughly 670,520 shares and came as EELV added about 1% in the last trading session.
Banking crisis in the United States and Europe probably made many investors look toward the emerging markets (EMs) ETFs for profits. Undervaluation, falling Inflation in some EMs, the likelihood of subdued greenback and the reopening of China made the case for EM investing stronger. Still, EM investing requires high risk appetite. Thus, cautious investors went for low-volatility EM ETF (EELV - Free Report) to stay away from the ongoing baking crisis.
Invesco Taxable Municipal Bond ETF (BAB - Free Report) ): Volume 4.70 Times Average
This municipal bond ETF was under the microscope yesterday as about 2.1 million shares moved hands. This compares with an average trading volume of roughly 475,000 shares and came as BAB lost about 0.7% in the last trading session.
The tax season is round the corner, which is why, this municipal bond ETF has probably become the point of investors’ interests. Municipal bonds are excellent choices for investors seeking a steady stream of tax-free income. Usually, the interest income from municipal bonds is exempt from federal tax and may also not be taxable per state laws, making these especially attractive to investors in the high tax bracket looking to reduce their tax liability.