Daily ETF Roundup: VNQ Edges Higher, VXX Dips On Falling Volatility

by on April 24, 2012 | ETFs Mentioned:

Equity markets drifted sideways for the most part on Tuesday, managing to post a positive performance as the trading session drew to a close, despite weaker-than-expected economic data. On Wall Street, the Dow Jones Industrial Average took the lead, gaining 0.58% on the day, while Apple’s lackluster pre-earnings performance dragged the Nasdaq down 0.30% on the day. Gold futures finished largely unchanged while crude oil crept higher, settling at $1,640 an ounce and $103.60 a barrel respectively [see Free Report: 7 Simple And Cheap ETF Model Portfolios].

Stocks were surprisingly positive on the day considering the shaky economic data. Consumer confidence came in at 69.2, falling short of the 70 estimate as well as last month’s reading of 69.5. New home sales data for March was also sour; the figure came in at 328,000, beating estimates of 325,000, but falling short of last month’s reading of 353,000. In international news, Australian CPI came in lower-than-expected; inflation fell to 1.6% from the previous reading of 3.1% [see also Easy-As-ABC ETFdb Portfolio].

The Vanguard REIT ETF (VNQ) was one of the best performers, gaining 1.50% on the day, bolstered by surprisingly bullish price action despite the concerning consumer confidence and housing market data. This ETF climbed higher right from the opening bell on Wall Street, posting a multi-year high at $64.33 a share; VNQ is up 10% from a year-to-date performance perspective [see VNQ Holdings].

The Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX) was one of the worst performers, shedding 2.45% on the day. The VIX Index sank lower by over 4.5% on the day, settling near the 18 mark, as improving confidence over earnings overshadowed lackluster economic data [see also Low Volatility ETFdb Portfolio].

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Disclosure: No positions at time of writing.