Following last week’s positive performance on Wall Street, investors returned this Monday with profit taking on their mind. Selling pressures kicked in right from the opening bell as looming uncertainty in Europe resurfaced over the weekend, bringing debt woes back into the headlines. To top it off, the World Bank warned of a slowdown in Asia as the region’s powerhouse, China, continues to face a slowdown in economic growth. Quarterly corporate performance results will come into the spotlight this week as Alcoa kicks off earnings season tomorrow after the closing bell [see Free Seven Simple & Cheap All-ETF Model Portfolios].
At home, shares of Apple encountered heavy selling pressures, dragging down the tech-heavy QQQ 0.91% on the day. Blue chip names held their ground best amid the profit taking, helping DIA turn in the best performance, although the ETF was still down 0.23% for the day. Asian markets turned south after the World Bank issued a deteriorating outlook regarding the region’s economic growth while political gridlock caused for Euro zone debt woes to resurface.
Bond ETF Roundup
U.S. Treasuries led the way higher as “risk off” trading proved to be the dominant theme throughout the day. As such, it’s not terribly surprising to see riskier junk bonds fall lower alongside broad stock benchmarks.
Commodity ETF Roundup
Resurfacing debt woes in Europe sparked a flight to safety and the U.S. dollar ended the session with gains. Amid growing concerns of a global economic slowdown, natural resource futures prices edged lower with silver leading the way south. Natural gas deviated from the pack today as futures prices for this fossil fuel managed to clinch gains during an otherwise lackluster session for commodities.
ETF Chart Of The Day #1: VXX
The Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX) was one of the best performers, gaining 1.17% on the day. The Volatility Index popped higher at the open, gaining upwards of 5% on the day as profit taking pressures permeated virtually every corner of the global equity market. Although selling pressures eased up in the final hours of trading, the VIX still managed to close above the 15 mark for the day [see our Low Volatility ETFdb Portfolio].
ETF Chart Of The Day #2: FXI
The iShares FTSE China 25 Index Fund (FXI) was one of the worst performers, shedding 1.07% on the day. The bears attacked this ETF right from the opening bell in response to the overnight announcement made by the World Bank which lowered its growth rate forecast for the entire East Asia region. Experts cited that the Chinese economy is plagued by a drop off in manufacturing driven by weaker exports as well as a slowdown in domestic demand and investment growth [see also Billionaires Dump Equity Holdings, Time To Panic?].
ETF Fun Fact Of The Day
The best performing themed portfolio is our 2012 ETFdb Portfolio in the trailing 4-week period; this strategy is up 4.07%.
Disclosure: No positions at time of writing.