Strength in financial and energy sectors was offset by weakness in health care. Meanwhile, emerging markets country ETFs in Asia and Latin America continued to climb toward their 200-day moving averages.
Here are 7 ETFs You Need to Know for Monday.
Among the most widely traded exchange-traded funds providing exposure to the financial sector, the Financial Select Sector SPDRS ETF ( XLF | Quote | Chart | News | PowerRating) was up by more than 2% late in trading on Friday. Gains in Wells Fargo ( WFC | Quote | Chart | News | PowerRating), Goldman Sachs ( GS | Quote | Chart | News | PowerRating) and Bank of America ( BAC | Quote | Chart | News | PowerRating) were especially responsible for sending the XLF deeper into overbought territory below the 200-day moving average.
One often overlooked option for hedging investments or trades in financial stocks is the ProShares Short Financials ETF ( SEF | Quote | Chart | News | PowerRating). SEF provides inverse exposure to the Dow Jones U.S. Financials Index.
Continuing to move lower below the 200-day moving average and increasingly oversold is the ProShares UltraShort Oil & Gas ETF ( DUG | Quote | Chart | News | PowerRating). The ETF was down as much as 4% late in trading on Friday before rallying to a decline of less than 2%. Strength in variety of oil and gas stocks - from Halliburton ( HAL | Quote | Chart | News | PowerRating) to Nabors Industries Ltd. ( NBR | Quote | Chart | News | PowerRating) - helped drive the short ETFs pullback.
Despite heavy selling in Microsoft ( MSFT | Quote | Chart | News | PowerRating) on Friday, traders and investors were bidding technology ETFs higher. One beneficiary was the Technology Select Sector SPDRS ETF ( XLK | Quote | Chart | News | PowerRating), which closed at its highest levels of the year and is increasingly overbought below the 200-day moving average.
Health care stocks continued to face strong selling pressure during Friday trading, leading to lower levels for health care related ETFs like the Vanguard Health Care ETF ( VHT | Quote | Chart | News | PowerRating) and the Health Care Select Sector SPDRS ( XLV | Quote | Chart | News | PowerRating), both of which closed lower for a second consecutive session.
Pulling back for a sixth consecutive session above the 200-day moving average was the iShares Barclays TIPS Bond ETF ( TIP | Quote | Chart | News | PowerRating). The ETF is now more oversold than at any point since breaking out above the 200-day moving average in mid-March.
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