This Week's ETF Winners & Losers
Financial-related exchange-traded funds were among the worst performers of a horrid week on Wall Street following more fears about the credit crisis, new writedowns and another CEO ouster.
Embattled
Citigroup
(C) - Get Citigroup Inc. Report
chief Chuck Prince resigned over the weekend, but the news was overshadowed by the banking giant's forecast for writedowns of between $8 billion and $11 billion from the shrinking value of its subprime-related investments. Shares of Citigroup dropped 12.3% on the week.
Similarly,
Wachovia
(WB) - Get Weibo Corporation Report
said Friday that it expects to record a $1.1 billion writedown in debt obligations for October alone because of the recent subprime mortgages and credit mess. Wachovia tumbled 5.1% over the five sessions.
Several other lenders fell hard during the week.
Washington Mutual
(WM) - Get Waste Management Inc. Report
sank 13.9%,
Barclays
(BCS) - Get Barclays PLC Report
dropped 11.1%,
TheStreet Recommends
Morgan Stanley
(MS) - Get Morgan Stanley Report
lost 8%,
Merrill Lynch
(MER)
ended down 7%, and
Bear Stearns
(BSC)
shed 5.1%.
The
Ultra Financial ProShares
(UYG) - Get ProShares Ultra Financials Report
ETF tumbled 7.8% to $45.35. The
iShares Dow Jones U.S. Broker-Dealers
(IAI) - Get iShares U.S. Broker-Dealers ETF Report
ETF was lower by 5.3% to $49.27. The
KBW Bank
(KBE) - Get SPDR S&P Bank ETF Report
ETF fell 3.3% to $46.32.
Elsewhere, a 12.1% drop in shares of
Cisco
(CSCO) - Get Cisco Systems Inc. Report
during the week sank Internet and technology ETFs. Cisco said it had a fiscal first-quarter profit that topped estimates by a penny. However, the tech behemoth soured sentiment after saying it is feeling the effects of the credit crunch.
Several other tech leaders, who had enjoyed a run-up in recent months, stumbled during the week.
Research in Motion
(RIMM)
,
(GOOG) - Get Alphabet Inc. Report
,
Oracle
(ORCL) - Get Oracle Corporation Report
and
Apple
(AAPL) - Get Apple Inc. Report
lost 6.6% or more.
The
Ultra Technology ProShares
(ROM) - Get ProShares Ultra Technology Report
ETF plunged 16.4% to $80.14. The
Internet Architecture HOLDRs
(IAH)
shed 10.9% to $49.66. The
iShares S&P GSTI Networking
(IGN) - Get iShares North American Tech-Multimedia Networking ETF Report
ETF lost 7% to $34.84. The
First Trust Dow Jones Internet Index
(FDN) - Get First Trust Dow Jones Internet Index Fund Report
slid 6.5% to $25.59.
Bundled securities tracking the retail sector were also losers for the week, following disappointing same-store sales results on Thursday. Most notably affected were apparel retailers, as
Nordstrom
(JWN) - Get Nordstrom Inc. Report
,
Limited
(LTD)
,
Gap
(GPS) - Get Gap Inc. (The) Report
and
Chico's FAS
(CHS) - Get Chico's FAS Inc. Report
all reported monthly losses and missed consensus targets.
The
SPDR S&P Retail
(XRT) - Get SPDR Retail ETF Report
ETF ended down 5% to $34.69. The
PowerShares Dynamic Retail
(PMR) - Get Invesco Dynamic Retail ETF Report
ETF eased 4.9% to $16.05. The
Retail HOLDRs
(RTH) - Get VanEck Vectors Retail ETF Report
fell 4.9% to $91.46.
On the other hand, Treasury-related ETFs were among few gainers as investors pulled out of equities money into bonds. On Friday, the 10-year note rose 16/32 in price, yielding 4.22%, compared to a yield of 4.30% a week ago.
The
SPDR Barclays Capital TIPS
(IPE)
ETF rose 1.4% to $50.88. The
iShares Lehman 10-20 Year Treasury Bond
(TLH) - Get iShares 10-20 Year Treasury Bond ETF Report
ETF gained 0.6% to $103.56. The
SPDR Lehman Long Term Treasury
(TLO)
ETF added 0.3% to $52.64.
