Best And Worst ETFs Of The Week Amid China Whipsaw
This is the way the world ends
Not with a bang but a whimper. — T.S. Eliot
The investment world collectively held its breath this week as China’s market experienced unprecedented curbs and regulation alongside news of another proposed plan to shore up Greece. In addition, the jostling in international markets led to significant concerns about slowing economic growth as the International Monetary Fund (IMF) downgraded its forecast to 3.3 percent.
Despite these worries, a late rally helped salvage the week for domestic markets. The SPDR S&P 500 ETF Trust (NYSE: SPY) finished near the flat line since last Friday’s close and managed to bolster the confidence of the bulls. This key measure of large-cap stocks also experienced its first significant test of the 200-day moving average in 2015, which acted as a trend line of support.
The following ETFs represent a sample of the best- and worst-performing funds over the last five trading sessions.
BEST: China Small-Cap A-Shares
After coming off several weeks of plunging prices, the Market Vectors ChinaAMC SME-ChiNext ETF (Market Vectors ETF Trust (NYSE: CNXT)) managed to reverse its fortunes on Friday. CNXT gained over 11 percent this week, as volatile trading in small-cap China A-share stocks led to a strong bounce.
Prior to the China collapse, CNXT was one of the top exchange-traded funds in terms of total performance in 2015. This fund has just $41 million in assets dedicated to 100 of the largest and most liquid stocks on the Small and Medium Enterprise Board of the Shenzhen Stock Exchange.
WORST: China Technology Stocks
In a rare twist of events, Chinese technology stocks were one of the weakest areas of the global marketplace over the last five trading sessions. The Global X China Technology ETF (NASDAQ: QQQC) fell 8 percent this week, despite a late Friday surge to try and stem its losses.
This ETF tracks 38 companies engaged in computer services, Internet, social media, hardware and other technology endeavors. QQQC primarily invests in Chinese companies that are traded on foreign exchanges through American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs).
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