Monday’s market sell-off caused investors significant pain, though it seems the market has recovered. The sell-off hit all types of investors and strategies given how much tech in particular lost ground. That said, not all strategies suffered Monday. Indeed, four particular ETFs won the volume battle Monday amid that global sell-off, with a variety of approaches that could intrigue the ETF investing crowd.
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According to YCharts, four specific ETFs saw the largest jump in volume relative to their 30-day average daily volume on Monday amid the chaos. That group includes the following: the Nationwide Nasdaq-100 Risk-Managed Income ETF (NUSI ), the VictoryShares Free Cash Flow ETF (VFLO ), the Invesco S&P 500 Momentum ETF (SPMO ), and the SPDR Portfolio S&P 500 Value ETF (SPYV ).
NUSI, which charges a 68 basis point fee, saw the biggest gains relative to its 30-day volume average. That represents a 1,294% difference. The strategy’s average daily trading volume of 92,261 spiked to a whopping 1,286,686 on Monday. NUSI actively invests in the Nasdaq-100 Index with an options collar that combines call and put options to generate income hedging against downside risk.
The other three ETFs that spiked during the market sell-off saw eye-popping jumps of their own. VFLO beat its 30-day average of 385,133, with a total of 3,162,032 in trading volume, a 721% increase. VFLO charges a 39 bps fee to track the Victory U.S. Large Cap Free Cash Flow Index. VFLO looks for firms based on strong fresh cash flow yields and growth metrics.
SPMO tracks the S&P 500 Momentum Index for a 13 bps fee. The strategy looks for firms whose stock prices have changed notably by percentage over the last year, excluding the prior month. It then weights firms based on size and a separate momentum score. SPMO saw 6,035,798 moves for its volume Monday during the market sell-off compared to its 30-day average of 909,261. It can also tout 21.8% YTD total returns as of Monday, per YCharts.
Finally, SPYV takes a value view into the S&P 500. The strategy saw its volume spike from its 3,120,115 average to 20,048,339 on Monday. SPV charges 4 bps.
The market sell-off Monday caused quite a bit of pain, and investors noticed. Intriguingly, only NUSI offers an explicit focus on risk. Investors’ love for NUSI and the other ETFs’ factor approaches could speak to a chastised, but persistent, sense of positivity. Whatever the cause, investors may want to keep an eye on these four ETFs regarding further volatility.
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VettaFi LLC (“VettaFi”) is the index provider for VFLO, for which it receives an index licensing fee. However, VFLO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of VFLO.
