Thanksgiving Turkey to Santa Claus Rally
Equity investors continue to experience a roller coaster ride as a terrible run up to Thanksgiving was followed by a week significant gains in stock prices.
SPY
Does Volume Matter? Evaluating ETF Liquidity
An ETF does not require a certain amount of trading volume in order to be liquid. The underlying securities of the ETF determine its liquidity. Many within the industry do not grasp this reality and are missing out on a lot of quality ETFs.
ETF Assets Climb $21 billion in August
ETF assets grew $20.8 billion or 3% in August according to State Street Global Advisors. ETF assets now total $661 billion across 755 ETFs. Market Cap ETFs saw the biggest growth in August, increasing $9.6 billion or 6.0%.
Equities Rally on Earnings
US equities rallied 7% last week on stronger than expected earnings reports. The largest broad market ETF, the SPDR S&P 500 (SPY), finished last week at $94.13, up $6.17 or 7% from the prior week’s close.
ETF Assets Grow $31 Billion in March
Assets in the U.S. ETF industry ended March at $482 billion, up $31 billion or 6.8%. In the March ETF Snapshot report, State Street Global Advisors found that the biggest driver of growth were International ETFs with assets up $10 billion or 12.5%.
Stocks Rally off a New Low
After closing at a new multi-year low on Monday, stocks rallied through the rest of the week on the back of reassuring remarks from bankers and administration officials. The broad market ETF SPDR S&P 500 (SPY) closed the week at $76.09, up 12% from Monday’s low of $68.11.
Credit Markets Show Signs of Thawing
Monday’s annoucement that Cisco successfully raised $4 billion at low interest rates is another sign that the credit markets are beginning to unfreeze.
Financials Back from the Brink
After the Federal Government threw a lifeline to Citigroup (C) at the beginning of last week, the large cap financials have recovered nicely. The Financial Select Sector SPDR Fund (XLF) is up 35% from the close on November 20. Over the same time period, the S&P 500 (SPY) is up 19%.
Looking for a Bottom – Part 2
The day after we posted Looking for a Bottom? Start with Sectors, the market tested a new 52-week low and sector performance was telling.
ETF Assets Fall in Line with Market
ETF industry assets fell $97 billion or 16.7% in October, in line with the 16.7% decline in the S&P 500 for the month.