Sunday, April 17, 2011

Most Traded ETFs

Exchange Traded Funds are becoming more and more popular. High liquidity and ability to trade the funds like stocks attract many retail and institutional traders. The interesting thing about the most traded ETFs is that the investors are focusing their attention on more volatile funds. The high-tech crash in 2000 has pushed QQQ (Nasdaq 100 tracking stock) on the first place among other ETFs by average trading volume. The couple of years ago SPY (S&P 500 tracking stock) has become the most popular traded fund. 2008 stock market crash has pushed XLF (S&P 500 Financial tracking stock) close to the leading trading funds - crash was caused by the housing bubble in the financial industry. 2011 earthquake in Japan has pushed EWJ (japan Index tracking stock) into the top leading ETFs. As you may see the investors are going to the funds and stocks that are promising more volatile movements, where you potentially can earn higher profit, yet, where you potentially can lose more as well.

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