Both Direxion Daily Small Cap Bull 3x Shares (NYSEArca: TNA) and ProShares Ultra Russell 2000 (NYSEArca: UWM) saw healthy creation activity, and these leveraged ETFs which reset daily reflect sentiment that we may have a short term trading rally in the small-cap Russell 2000.
On the mild pullback last week from recent highs, investors also seemed to use this opportunity to gain exposure to the fixed income ETF space as iShares iBoxx Investment Grade Corporate Bond (NYSEArca: LQD), iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG) and Vanguard Total Bond Market (NYSEArca: BND). HYG took in assets on healthy volumes. LQD notably finished the week trading at a multi-year high.
Finally, after an early week surge following the MF Global announcement as well as the ongoing unsteadiness in Greece, the VIX surged suddenly from the mid 20s to trade as high as 37.53 before settling in at 30.16 to close the week. VIX options and VIX related ETFs and ETNs traded with little event this past week, but flows from recent weeks in the options marketplace suggest that institutional players are positioning for a decrease in the VIX (and thus more overall stability in the equities markets heading into year’s end), so we will monitor short term flows there to see if this sentiment is reinforced or changes suddenly.
SPDR S&P 500
For more information on Street One ETF research and ETF trade execution/liquidity services, contact [email protected].