Daily ETF Roundup: VXX Continues Higher, IWO Tumbles

by on May 7, 2010 | ETFs Mentioned:

Equity markets fell sharply again to finish the week, as the Dow posted another triple digit loss after one of the wildest trading days in history on Thursday. The tech heavy Nasdaq sank by 2.3% while European equities also fell as Greek debt issues remained in focus and Britain’s general election vote ended in a hung parliament (also read Britons Vote, UK ETF Loses). Among the biggest losers abroad were France and Japan, which both saw their major indexes tumble by more than 3%. In more positive news for the economy, oil prices slid further and the Labor Department reported that employers added 290,000 jobs; however, the jobless rate rose to 9.9% as more people looked for work.

The ETFdb 60 Index lost another 6.38 points, or 0.6%, on Friday to close the week at 1,012.97. The ETFdb 60 has now lost 4.7% on the week and is down 2.0% for the year.

The biggest loser in the ETFdb 60 was iShares Russell 2000 Growth Fund (IWO) which sank by 2.9% to finish the week. This was largely due to investors seeking more stable and larger names in an attempt to avoid the often riskier nature of small cap equities. Despite outperforming the market over the past 52 weeks, small cap funds have been especially hard hit this past week; IWO has posted an 11% loss since Monday (see more fundamentals of IWO).

Among the biggest winners on the day was iPath S&P 500 VIX Short-Term Futures ETN (VXX), which soared higher by 12% in Friday trading. This boost came on the back of the continued spread of fear in the market and another volatile session; markets dipped sharply to start the day, reached into positive territory, and ultimately slipped lower by more than 1.5%. In addition to continued worries about Greece and the debt crisis brewing throughout Europe, the uncertainty surrounding the ultimate outcome of the British election helped to add fear to the markets and push VXX higher by an astounding 49.4% for the week (see more charts of VXX here).

Disclosure: No positions at time of writing.