Daily ETF Roundup: SPY Hits 2011 Low, GLD Soars On Market Fear

by on October 3, 2011 | ETFs Mentioned:

Today marked the opening of the fourth quarter and represented a blank slate for some investors. The third quarter of this year erased all of the progress accumulated through the first half, leaving investors frustrated with markets that refuse to follow a stable pattern. Today saw losses across the board, as the Dow Jones Industrial Average lost 2.4% and the NASDAQ suffered a 3.3% blow. Oil had a rough day as well, finishing up the session down $2.49/barrel, leaving the trading day at roughly $74.7/barrel, the lowest prices seen this year. Interestingly enough, October is historically a bad month for stocks, as a number of infamous crashes have occurred during the month, most notable being the beginning of the Great Depression with the 1929 Market Crash [see also ETF Insider: Yet Another Up-Down Week].

In times like these, it can be nearly impossible to pick the right investment, as asset classes are extremely unstable. Here at ETFdb, we are dedicated to helping investors find the right fund for them, and as such, will be offering a free Webinar this Wednesday, October 5th. Admission is free and applicants are eligible for 1 hour CE Credit as approved by the CFP Board. This session, entitled “How To Find The Right ETF” will offer investors with a number of factors to consider to help them pick the best fund for their objectives in the current environment. But for now, we outline two of the most notable ETF performances from today’s hectic trading day.

One of the biggest ETF losers on the day came from the SPDR S&P 500 (SPY) which hit its 2011 low along with the underlying S&P 500 Index. Today’s big hit was spurned by Greece, as they yet again brought unfortunate news to markets, putting global markets in something of a headlock. The indebted nation announced that it will miss deficit reduction targets that were originally agreed upon for the bailout deal which once again brought up the prospect of default for the highly indebted country. Today was so harsh that nine stocks fell for every one that rose on the New York Stock Exchange while volume was also robust as the NYSE had a total volume of 5.8 billion shares and SPY saw volumes of nearly 360 million shares, a 21% increase from its normal trading figures. Overall, the popular fund dipped 2.85% today, helping to start the fourth quarter on a very sour note.

One of the biggest ETF winners on the day came from the SPDR Gold Trust (GLD), another product from ETF giant State Street. Gold’s rise came from uncertain markets, as is the typical result from a rocky day. Lately, however, gold has been paralleling the crushing losses in equities, so investors will be happy to see the metal re-establish its inverse relationship. What some may find surprising is that GLD had a daily volume of 13.8 million, which is nearly half of what the fund normally trades. When equities put up bad numbers, gold usually sees heavy inflows, but with the last week putting pressure on the shiny commodity, it seems investors are apprehensive to jump back in with both feet. Overall GLD surged1.85% today and was one of the few asset classes to start the week in the green [see also 50 Ways To Invest In Gold].

Disclosure: No positions at time of writing.