Dion’s Monday ETF Winners and Losers
Welcome to Don Dion’s Daily ETF Winners and Losers. Be sure to stop by each day to get a feel of who’s winning and who’s losing when it comes to ETFs.
Winners
SPDR S&P Biotech ETF (XBI) 3.7%
A slew of biotechnology focused ETFs are topping today’s list of winners. XBI is among one of the biggest gainers as top holdings Genzyme (GENZ) and Biogen (BIIB) jump more than 5% in afternoon trading.
Due to wild swings in individual companies, playing the biotech industry can be an exciting, albeit tricky endeavor. ETFs like XBI however, reduce this volatility thanks to owning a basket of stocks.
iShares Dow Jones U.S. Home Construction Index Fund (ITB) 2.6%
Today’s new home sales numbers were up today, providing the home construction ETF with some fuel to move higher.
Real estate and housing remain risky areas of the market. However, in recent days, ITB has managed to carve out a new July high, the first positive sign for the fund this month.
iShares Dow Jones Transportation Average Index Fund (IYT) 2.5%
Last week a collection of top IYT holdings released analyst-beating earnings reports, providing the fund with the momentum needed to retest June highs.
On Monday, top holding FedEx (FDX) added to the transportation industry’s positive outlook by increasing its earnings prediction for the third quarter. Strength can also be found from rail companies including Union Pacific (UNP) and CSX (CSX) , which were both up more than 2%.
ETFS Physical Palladium Shares (PALL) 2%
Precious metals with many industrial uses such as palladium, platinum and silver, are treading higher today as U.S. markets remain in positive territory.
Today’s increase brings PALL through its 50-day moving average for the first time since breaking below it in early May.
Losers
iPath S&P 500 VIX Short Term Futures ETN (VXX) -3.2%
The VIX-based ETN topping today’s list of losers has reverted back to early May levels as strong earnings help investors regain some confidence in the global economic recovery.
The iPath S&P 500 VIX Mid Term Futures ETN (VXZ) is seeing weakness today as well, dipping 1.1%.
iPath Dow Jones-UBS Grains Total Return Subindex ETN (JJG) -1.6%
Although it staged an impressive rally heading into the start of July, the grain ETN is taking a hit today, leading broader agricultural ETFs such as PowerShares DB Agriculture (DBA) and iPath Dow Jones-UBS Agriculture Total Return Subindex ETN (JJA) lower.
Market Vectors Gold Miners ETF (GDX) -0.7%
Gold prices are starting off the week on a weak note as investors flee the metal in favor of riskier asset classes. In response to the slumping commodity, gold miners are taking a hit. Several major holdings in GDX will report earnings later this week.
