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Consumer and Leveraged Treasury: 2 ETFs to Watch on Outsized Volume

In the last trading session, U.S. stocks closed in the green, posting the highest gain in the last couple of weeks, driven by a decline in the dollar. Among the top ETFs, investors saw SPY gain 0.79%, DIA move up 0.63% and QQQ rise 0.95% on the day.

Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most recent trading session. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra-interest continues:

IYK: Volume 7.93 times average

This consumer ETF was in focus yesterday as around 617,000 shares moved hands compared with an average of roughly 78,000 shares a day. We also saw some price movement as IYK added nearly 0.9% in the last session.

The big move came in as the Institute for Supply Management (ISM) data showed that U.S. manufacturing activity expanded for the second consecutive month in April albeit at a slightly slower pace. This can have a big impact on the consumer stocks like what we find in this ETF portfolio. In the past one-month period, IYK was down 0.5% and has a Zacks ETF Rank of 3 or ‘Hold’ rating with a Medium risk outlook.

UBT: Volume 4.35 times average

This leveraged long-term government bond ETF was in focus yesterday as almost 79,000 shares moved hands. This compares to an average trading day of 19,000 shares. UBT lost about 1.5% in the session.

The movement can largely be blamed on the rise in long-term treasury yields. Funds with leveraged factor tacked on them provide outsized returns in a very short period of time. UBT was down over 3.4% in the past one-month period.

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ISHARS-US CN NC (IYK): ETF Research Reports
 
PRO-ULT 20+YT (UBT): ETF Research Reports
 
SPDR-SP 500 TR (SPY): ETF Research Reports
 
NASDAQ-100 SHRS (QQQ): ETF Research Reports
 
SPDR-DJ IND AVG (DIA): ETF Research Reports
 
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