This weekly column of SchaeffersResearch.com highlights leading and lagging Exchange Traded Funds (ETF) and is designed to supplement the data you can find our ETF center. The graphs below are based on a select list of ETFs that I follow and reflect the returns from last Friday's close through this afternoon.
Note: If you are not familiar with the advantages that ETFs offer, make sure you read the information in our Education and FAQ sections.
Last week we saw that selling pressure was showing signs of subsiding but that the utilities and energy groups were still struggling. This week we see a much more balanced picture as some signs of buying demand have returned...
Last week I said that the oil- and energy-related ETFs needed to show some signs of stabilizing as they neared support. Here we see that this did happen as the OIH, IGE, and XLE took the top slots on graph with moderate gains for the week. At the bottom of the chart we find that in general technology, retail and bonds were weak. For a longer-term perspective, the bullets below show the year-to-date returns for the ETFs listed above.
Year-to-Date Returns for This Week's Top Performing Sector Exchange Traded Funds:
Year-to-Date Returns for This Week's Bottom Performing Sector Exchange Traded Funds:
As I looked over these numbers I was surprised by how many were near breakeven. Given that the SPX is within two percent of last year's close I know it makes sense that many sectors would show similar results. But it struck that we are entering the last two months of the year with little in the way of trends for traders and fund managers to jump on.
To see what groups were moving the most on a year-to-date basis I went back to my list and found that utilities, biotech, natural resources, energy, and oil service have been the best performers. With the clock ticking on 2005, some may look to pile into these groups on the hopes that the uptrends will continue. While following this sort of momentum is not a long-term investing strategy, nimble traders might find it offers some opportunity. It will be worthwhile to keep an eye on the daily action to see if signs of increased activity pickup. And for those curious, the pharmaceuticals, telecom, software, consumer discretionary, and internet groups have struggled the most...
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