Business
ETFs held up remarkably well during the sale
Effectiveness of the ETF.
This became a notable theme during last week's sales wave, according to industry leaders. The action marked the worst week of performance in the US stock market since the depths of the 2008 financial crisis, fueled by fears surrounding the global spread of the coronavirus.
"There are 2,400 ETFs," Chris Hempstead, director of institutional business development at IndexIQ, told CNBC "ETF Edge" on Monday. "They all held up remarkably well. … Everything has stood up really well in this market, and the verbiage that was communicated to me by the liquidity providers was" orderly ", and that is important."
Orderly trading has indeed been rare since the market entered correctional territory last week, with the Dow Jones Industrial Average posting its biggest one-day loss at a point in history Thursday, 96 % of the S&P 500 going into correction on Friday and trading platforms such as Robinhood. system-wide failures.
Stocks rebounded Monday to try to recover from the pain, with the Dow closing 5.1% or 1,293.96 points more, its biggest gain in a day, and the S&P and the Nasdaq Composite climbing 4 respectively , 6% and 4.5%.
Amid all the confusion and fear with $ 986 billion of US stocks changing hands on Friday, the largest dollar value ever traded, according to Goldman Sachs ETF, has become a particularly effective trading vehicle, a said Hempstead.
"(The) highest theoretical trading day of all time, … these products held up perfectly, exactly as they should," he said, wearing his hat on volatility trading products such as the short-term daily 2x VIX ETN from VelocityShares. (TVIX) and iPath Series B S&P 500 VIX Short Term Term Futures (VXX) from Barclays as well as its own firm IQ Merger Arbitrage ETF (MNA).
Nick Colas, the co-founder of DataTrek Research, agreed with Hempstead, noting that even though high-yielding ETFs such as the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) sold weekly last, the stock "did not have a profound effect on the high-yield market" as a whole. HYG hit a new 52-week low on Monday.
"Trading has held up very well," Colas said in the same interview with "ETF Edge".
Now he advises clients to monitor two key levels of the Cboe volatility index, also known as the VIX or market fear indicator.
"We have given our customers two levels to test on the VIX. The first is 42," said Colas. "(If) the VIX exceeds 42, you buy."
The VIX hit 49.48 on Friday, the highest level in the index since 2009. On Monday, it fell to close to 32 at the close.
"This is one of the reasons why we are getting the rebound today," Colas said of Friday's VIX spike.
"The second level where you stack up is 55 and over. It's a real crisis, down 5%," he said. "It shouldn't happen, but it did happen for most of the fourth quarter of 2008. You buy at these levels, you wait three to six months, you have a gain. So those are the two levels at watch for a bounce. "
Warning
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
picture credit
to request, modification Contact us at Here or [email protected]
 |
 |
 |
