We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bank and Short-Term Junk Bonds: 2 ETFs to Watch for Outsized Volume
Read MoreHide Full Article
In the last trading session, Wall Street was in the red due to rising rate worries. Among the top ETFs, (SPY - Free Report) shed 0.09%, (DIA - Free Report) lost 0.5% and QQQ moved 0.1% lower on the day.
Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most-recent trading session. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra-interest continues.
This bank ETF was in the spotlight as around 7.45 million shares moved hands compared with an average of 2.45 million shares a day. We also saw some price movement as KBE gained 3.40% in the last session.
The move was largely the result of rising bond yields on a hawkish Fed. Banks are a beneficiary of rising rates. As banks seek to borrow money at short-term rates and lend at long-term rates, a steepening yield curve earns more on lending and pay less on deposits, thereby leading to a wider spread. This expands net margins and increases banks’ profits. KBE has gained 7% over the past month and carries a Zacks ETF Rank #2 (Buy) with a High risk outlook.
This short-term junk bond ETF was under the microscope as nearly 12.18 million shares moved hands. This compares with an average trading volume of roughly 4.20 million shares and came as SJNK lost about 0.1% in the last trading session. Rising rate worries have hurt SJNK. SJNK has lost 0.1% in a month’s time.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bank and Short-Term Junk Bonds: 2 ETFs to Watch for Outsized Volume
In the last trading session, Wall Street was in the red due to rising rate worries. Among the top ETFs, (SPY - Free Report) shed 0.09%, (DIA - Free Report) lost 0.5% and QQQ moved 0.1% lower on the day.
Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most-recent trading session. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra-interest continues.
(KBE - Free Report) : Volume 2.45 Times Average
This bank ETF was in the spotlight as around 7.45 million shares moved hands compared with an average of 2.45 million shares a day. We also saw some price movement as KBE gained 3.40% in the last session.
The move was largely the result of rising bond yields on a hawkish Fed. Banks are a beneficiary of rising rates. As banks seek to borrow money at short-term rates and lend at long-term rates, a steepening yield curve earns more on lending and pay less on deposits, thereby leading to a wider spread. This expands net margins and increases banks’ profits. KBE has gained 7% over the past month and carries a Zacks ETF Rank #2 (Buy) with a High risk outlook.
(SJNK - Free Report) : Volume 2.90 Times Average
This short-term junk bond ETF was under the microscope as nearly 12.18 million shares moved hands. This compares with an average trading volume of roughly 4.20 million shares and came as SJNK lost about 0.1% in the last trading session. Rising rate worries have hurt SJNK. SJNK has lost 0.1% in a month’s time.