It was a terrible Tuesday for some of 2013’s best-performing ETFs as the U.S. government shutdown sent investors scampering out of biotech, Internet and social media ETFs.
Even with yesterday’s slack performances, three biotech ETFs still rank among this year’s top-10 non-leveraged ETFs. The Global X Social Media Index ETF (NasdaqGS: SOCL), PowerShares NASDAQ Internet Portfolio (NasdaqGS: PNQI) and the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN) are not far removed from the top-10. [A Hidden ETF for Biotech Declines]
However, Tuesday’s list of 15 worst non-leveraged ETFs looks a graveyard of previous high flyers. That list contained four of the five major biotech ETFs, FDN, PNQI and SOCL, according to WallachBeth data. [Some of the Best ETFs Were Worst on Tuesday]
Sellers are back for with biotech, Internet and social media stocks Wednesday. This is how ugly it is getting for these high beta, stretched P/E ETFs:
SOCL is already down 2.6% on more than double its average daily volume as investors depart Facebook (NasdaqGM: FB) and LinkedIn (NYSE: LNKD), SOCL’s largest and fourth-largest holdings, on heavy volume. Those two stocks combine for 21.7% of the weight of an ETF with a P/E of 35.4, according to Global X data.