Wednesday's ETF Winners & Losers
Several interest rate-sensitive exchange-traded funds were rallying Wednesday, one day after the Federal Reserve cut rates by a surprising 50 basis points.
Among bundled securities tracking real estate, the First Trust S&P REIT (FRI) ETF jumped $1.10, or 6.2%, to $18.88. The Ultra Real Estate ProShares (URE) was up $2.10, or 4.5%, to $49.30. The iShares Dow Jones U.S. Real Estate (IYR) rose $1.86, or 2.4%, to $78.11.
The Ultra Basic Materials ProShares (UYM) was up $4.22, or 4.6%, to $95.21. The Vanguard Materials (VAW) ETF rose $1.89, or 2.2%, to $87.19. The PowerShares FTSE RAFI Basic Materials (PRFM) ETF was adding $1.48, or 2.3%, to $67.37. The Materials Select Sector SPDR (XLB) was higher by 78 cents, or 1.9%, to $42.08.Financial ETFs, which slumped due to liquidity problems and tightening credit markets, rallied thanks to the interest rate cut. Embattled finance concerns, including Countrywide (CFC), were on the rise Wednesday. The Ultra Financials ProShares (UYG) gained $1.21, or 2.1%, to $60.21. The Financial Select Sector SPDR (XLF) was up 44 cents, or 1.3%, to $35.37. The Vanguard Financials (VFH) ETF was advancing by 59 cents, or 1 %, to $62.71. The iShares Dow Jones U.S. Financial Sector (IYF) was adding $1.14, or 1%, to $112.80. Home construction-related ETFs were also gaining ground. D.R. Horton (DHI), Lennar (LEN), Centex (CTX) and Beazer Homes (BZH) were all jumping by 3.5% or more. The iShares Dow Jones U.S. Home Construction (ITB) was up 69 cents, or 2.8%, to $24.62. The SPDR S&P Homebuilders (XHB) was climbing 53 cents, or 2.1%, to $25.38. Once again, the United States Natural Gas (UNG) was the worst decliner of the session as natural gas futures fell 31 cents to $6.26 per million British thermal units. The ETF was lower by $1.26, or 3.2%, to $38.68.
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