Daily ETF Roundup: Street Edges Lower As European Gridlock Persists

by on September 24, 2012 | ETFs Mentioned:

Profit taking pressures from last week spilled over as investors continued to express their concerns over looming Euro zone debt drama. Clouds of uncertainty gathered over Wall Street on Monday morning after a frustrating lack of progress overseas kept confidence levels on edge; stocks stumbled lower out of the gates on both sides of the Atlantic ocean after German and French officials failed to agree on a proper timeline for initiative oversight of the region’s banking sector coupled with ongoing worries that Greece would not qualify for further financial aid [see Free Report: Seven Simple & Cheap All-ETF Model Portfolios].

Global Market Overview: Street Edges Lower As European Gridlock Persists  

Shares of Apple sank lower after a less-than-stellar iPhone 5 launch, which inevitably weighed down on the tech-heavy QQQ throughout the day. The Dow Jones Industrial Average ETF fared slightly better than the S&P 500 ETF, shedding 0.11% versus 0.15% respectively as the trading session drew to a close. Nick Raich, director of research with Key Private Bank in Cleveland, commented “Europe keeps throwing lifeboats at the problem. What they are really doing is buying time for an orderly breakup of some of the countries leaving the euro zone”.

Bond ETF Roundup 

U.S. Treasuries took on safe haven appeal as gridlock in Europe spooked many out of the equity market. Junk bonds edged lower alongside stocks throughout the day as investors broadly decreased their risk exposure in the fixed income markets to start off the week.

Commodity ETF Roundup

Commodity futures tanked lower across the board as resurfacing worries in Europe welcomed deteriorating economic growth expectations, which inevitably took their toll on industrial metals, energy prices, and agricultural goods alike. Strength in the U.S. dollar index also added to the headwinds plaguing resource prices on the day.

ETF Chart Of The Day #1: XLU

The State Street Utilities Select Sector SPDR (XLU) was one of the best performers, gaining 0.94% on the day. Bullish pressures permeated shares of XLU right from the opening bell; momentum continued to push this ETF higher throughout the day as investors largely jumped shipped to this traditionally safe haven corner of the stock market in light of the continuing gridlock in the debt burdened currency bloc overseas [see our Simple Safe Haven ETFdb Portfolio].

ETF Chart Of The Day #2: GDX

The Van Eck Market Vectors Gold Miners (GDX) was one of the worst performers, shedding 3.38% on the day. Gold miners stumbled lower out of the gates and went onto increase their losses as profit taking pressures persisted for most of the day [see also How To Play $10,000 Gold].

ETF Fun Fact Of The Day

Four ETFs track the Barclays Capital U.S. Aggregate Bond Index; Vanguard’s BND and Schwab’s SCHZ are the cheapest offerings charging 0.10% in annual expenses.

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Disclosure: No positions at time of writing.