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Pacific & Short-Term Corporate Bond: 2 ETFs Trading with Outsized Volume

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In the last trading session, the U.S. stocks were in the green. New-found optimism on solid U.S. job data for the month of June after a gloomy May lifted investors’ mood. Plus, extremely low levels of long-term U.S. Treasury yields once again spurred investors to join the stock market rally. Among the top ETFs, investors saw SPY gain about 0.4%, DIA move higher by over 0.5% and QQQ advance about 0.6% 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, in the most recent trading session, both these funds experienced volume levels that were more than double their average. This could make these ETFs ones to watch out for in the days ahead to see if this trend of extra interest continues:

VPL:Volume 4.19 times average

This pacific ETF was under the microscope on yesterday as nearly 1.64 million shares moved hands. This compares to an average trading volume of 390,000 shares and came as LEMB gained about 1.8% in the session.

The movement can largely be credited to the surge in Japanese stocks on new stimulus hopes following prime minster Abe’s landslide victory in the upper house election on Sunday. Since the fund invests about 60% assets in Japan, the latest gathering around the fund is self-explanatory. In the last one-month period, VPL was up about 3.7%. The fund has a Zacks ETF Rank #3 (Hold).

(VCSH - Free Report) : Volume 2.72 times average

This short-term U.S. corporate bond ETF was in focus yesterday as roughly 2.7 million shares moved hands compared to an average of roughly 980,000 shares.

The movement was because of the rising short-term U.S. Treasury yields. This is why investors turned their face from short-term bond ETFs like VCSH as there is an inverse relationship between bond yields and prices. However, in the last one-month period, VCSH was up over 0.5%. The fund has a Zacks ETF Rank #3.

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