ETFs on the Rise Despite Recent Giant Market Drop

Exchange traded fund (ETF) investors are still a little nervous after last week’s plunge sent the Dow Jones industrial average and the S&P 500 on their largest drop in five years. The Dow is down about 4.6% from its July 19 record close of 14,000.41, collapsing under the pressure of a possible unsteady lending environment, according to Madlen Read for the Associated Press.

Although the market was shaky today, it ended on a positive note, as you can see from the chart below. The ETFs that track the Dow (DIA), S&P 500 (SPY), Nasdaq (QQQQ) and Russell 2000 (IWM) were all up. However, market watchers say investors should continue to expect high volatility.