Short-Term Treasury And Currency-Hedged Japan: 2 ETFs To Watch On Outsized Volume

In the last trading session, U.S. stocks were in the green, brushing aside worries as aluminum giant Alcoa (NYSE:AA) kick started the earnings season on a positive note. New found optimism dominated investor’s sentiment. Among the top ETFs, investors saw (AX:SPY) gain 0.72%, (V:DIA) move higher by 0.70% and QQQ rise 0.50% on the day.

Two more specialized ETFs are worth noting as both saw trading volume that was far outside of normal. In fact, both these funds experienced volume levels that were more than double their average for the most recent trading session. This could make these ETFs the ones to watch out for in the days ahead to see if this trend of extra-interest continues:

SHY: Volume 2.89 times average

This short-term Treasury bond ETF was under the microscope yesterday as almost 6 million shares moved hands. This compares to an average trading day of around 1.5 million shares and came as SHY remained broadly flat in the session.

The big move was largely the result of treasury yields still remaining near multiyear low, which led investors to look for better returns. SHY gained 0.2% in the past one month and currently has a Zacks ETF Rank #3 or ‘Hold’ rating with a Medium risk outlook.

HEWJ: Volume 2.39 times average

This currency-hedged Japan equities ETF was in focus yesterday as roughly 2.7 million shares moved hands compared to an average of roughly 1.1 million shares. We also saw some stock price movement as HEWJ gained 2.5%.

The movement can largely be attributed to the reelection of Japan's Prime Minister Shinzo Abe, which has brought about hopes of new stimulus measures that can have a big impact on Japan-focused companies like what we find in this ETF’s portfolio. HEWJ was up 0.8% in the past one month and has a Zacks ETF Rank of 2 or ‘Buy’ rating with a Medium risk outlook.

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SPDR-DJ IND AVG (DIA): ETF Research Reports

SPDR-SP 500 TR (SPY (NYSE:SPY)): ETF Research Reports

NASDAQ-100 SHRS (QQQ): ETF Research Reports

ISHARS-1-3YTB (SHY): ETF Research Reports

ISHA-CH MS JAP (HEWJ): ETF Research Reports

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