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Five days of advancing markets on low volume ending on Friday have resulted in some aggressive profit-taking on Monday. Weakness in technology stocks, especially semiconductors, was marked. We include a number of technology ETFs in our report below.
Here are 7 ETFs You Need to Know for Tuesday.
Among the most widely traded technology ETFs is the SPDRS Technology Sector ETF, XLK (XLK | Quote | Chart | News | PowerRating), which provides traders with exposure to some of the biggest tech stocks such as Microsoft (MSFT | Quote | Chart | News | PowerRating), Apple (AAPL | Quote | Chart | News | PowerRating) and IBM (IBM | Quote | Chart | News | PowerRating).
Weakness on Monday was particularly pronounced in semiconductor stocks. Avoid sector risk with semiconductor ETFs such as the ProShares UltraSemiconductor ETF, USD (USD | Quote | Chart | News | PowerRating), a two-to-one leveraged fund. Traders looking to bet against semiconductor stocks - or to hedge a technology heavy portfolio - may want to consider the leveraged inverse or leveraged short fund, the ProShares UltraShort Semiconductor ETF SSG (SSG | Quote | Chart | News | PowerRating).
The SPDR KBW Regional Bank ETF, KRE (KRE | Quote | Chart | News | PowerRating), tracks many of the smaller, lesser known local banks around the country. Compare its holdings to those of an exchange-traded fund like the iShares Dow Jones U.S. Financial Sector ETF, IYF (IYF | Quote | Chart | News | PowerRating), which tracks the largest financial institutions such as Bank of America (BAC | Quote | Chart | News | PowerRating) and Goldman Sachs (GS | Quote | Chart | News | PowerRating).
Falling energy prices continue to encourage traders to sell energy stocks. While the iShares Dow Jones U.S. Energy Sector ETF, IYE (IYE | Quote | Chart | News | PowerRating) is one popular option for ETF trading and investing, traders looking for more specific exposure can turn to the SPDR S&P Oil & Gas Exploration and Production ETF, XOP (XOP | Quote | Chart | News | PowerRating), which tracks smaller exploration companies as well as the larger ones.
According to a recent report, eight out of ten securities traded are exchange-traded funds. Want to learn how to trade them? Click here to find out what traders are saying about Larry Connors' new book, Short Term Trading Strategies That Work: A Quantified Guide to Trading Stocks and ETFs!
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