Japan Weaker, Asia & U.S. Volatile This Week Updated: 5/29/2013
Strong earnings reports from key companies in the Green Economy sparked a rally in the NASDAQ OMX Green Economy Index (QGREEN) this week, leading equities markets higher. Meanwhile, silver and gold remained under pressure with the PHLX Gold/Silver Sector Index (XAU), a measure of gold and silver mining stocks, dropping 3.8%.
”Precious metals have experienced volatile trading this week, dropping to its lowest level in two and a half years,” said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. “Changing inflation expectations and sustained strength in the U.S. Dollar has curbed the demand for gold and silver as a long-term investment vehicle.”
For a look at the top weekly index movers, top five equity indexes, top five commodity indexes and other notable index moves, click here.
Investor inflows into exchange traded funds (ETFs) tracking the biotechnology sector have surged as the share prices of biotech companies make a record breaking start to 2013. According to FT.com, the largest vehicle in the sector, the iShares NASDAQ biotechnology fund (IBB), based on the NASDAQ Biotechnology Index (NBI), has registered inflows of $311.5M so far this year, already surpassing the $287.8M it gathered over the whole of 2012.
IBB has risen 32.6 percent this year, outperforming the second largest fund in the sector, State Street’s SPDR S&P biotech ETF, known as XBI, which is up 25.2 per cent. XBI has attracted $40.8m in new inflows in 2013, up from $24.9m over the whole of last year.
U.S. stocks have continued to move higher, with all-time closing highs in the Dow Jones Industrial Average and S&P 500 indices yesterday. Biotechnology stocks have been particularly strong, as have home builders and healthcare stocks. The NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 6.6% over the past 5 days and is up over 35% year-to-date.
"Biotech stocks have been helped by signs of a more accommodating U.S. approvals process and several companies reporting positive news. The tailwinds from the recent market rally are helping the sector as investors look to allocate funds to non-defensive sectors," said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. "The housing sector stocks were strong again this week, with a gain of almost 3% after a 4.4% rise last week."
For a look at the top weekly index movers, top five equity indexes, top five commodity indexes and other notable index moves, click here
The very first cross-border exchange-traded fund (ETF) in China launched on May 15. The ETF will be based on the NASDAQ-100 Index, providing Chinese investors access to 100 of the world's largest and most dynamic non-financial companies, based on market cap.
This is a significant milestone both for the growing global ETF landscape and for the increasing diversification of China's capital markets. The China Securities Regulatory Commission, the Shanghai Stock Exchange and Guotai Asset Management have paved the way for individual and institutional investors in China to trade an innovative investment solution that has not been previously available.
The Guotai NASDAQ-100 Exchange Traded Fund is listed on the Shanghai Stock Exchange.
We couldn't be more pleased with this development as a testament to NASDAQ OMX's prominence in the region. Read the press release, or visit our website to view the NASDAQ-100's performance history.
Index Universe named the First Trust NASDAQ Clean Edge Green Energy ETF (NASDAQ: QCLN) and the iShares NASDAQ Biotechnology Index Fund (NYSEArca: IBB) two of the best ETFs in 2013. According to the publication, QCLN  is challenging the db X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) for first position in a tally of top-performing ETFs year-to-date, with gains of 37.3 percent, and all of that linked to shares of Tesla, the luxury electric sports car maker. QCLN is based off of the NASDAQ Clean Edge Green Energy Index.
Read the entire article here.
Click the picture to listen to NASDAQ OMX's Dave Gedeon discuss the NASDAQ Dividend and Income Index Family with Chuck Jaffe of MoneyLife
The PowerShares BuyBack Achievers Portfolio (PKW) has been one of the best performing ETFs on the market, writes Jordan Wathen for The Motley Fool.
According to ETF Trends, year-to-date, the ETF has gained 15.7% compared to the 11.7% increase in the S&P 500. Stock components in the Powershares ETF are slightly less volatile than the S&P 500, and the ETF has consistently beaten the broad index.
PKW tries to reflect the performance of the NASDAQ Buyback Achievers Index (DRB), which is comprised of stocks that have repurchased at least 5% of their total shares outstanding over the past year and is weighted by market cap.
Read more from ETF Trends.
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