What a month it’s been for exchange traded funds (ETFs)! Most ETFs reached new highs by mid-month only to fall as much as 10% off those high. Large-cap ETFs outperformed mid- and small-caps and small-caps dipped below their trend lines.
Asian and emerging market ETFs outperformed domestic and European ETFs. China was up about 9% for the month, emerging markets ended up roughly 2.5% and Europe was down on average 3%.
Among the sector ETFs, oil was the top performer with USO rising 10% in July. Continued concerns in the housing sector put pressure on the homebuilder ETFs, which lost about 12%.
The general market barely remains above its long-term trend line. If there is more downward movement, the trend could change. Currently, the S&P 500 is 0.4% above the line.
Click here to view the July ETF performance report, and see how ETFs did in each area.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.