Nothing like a down day to spike volumes in the ETF market. When volatility picks up, so does activity, and that’s why my favorite report we produce is the Most Active ETF report. It provides a real-time narrative of the day.
Today, with the decent-sized sell-off, volumes were high across the board. But as I went through the report, two tickers jumped out. It could be a coincidence, but it’s worth a look.
The First Outlier: A Bet Against Tech?
First, on the equity side, the First Trust NASDAQ 100-X Technology Sector Index Fund (QQXT) hit the high-activity outlier list.
What is this fund? It’s essentially a way to invest in the NASDAQ without the technology sector—the very sector that has been driving the market forever.
This isn’t a massive fund (it’s about $1 billion in AUM), but it saw $114 million in volume today. That is a big trade for this product. It could be a sign that a large player is making a significant move, saying, “You know what, I want exposure to the market, but I don’t want that technology.”
The Second Outlier: A Flight to Safety?
As I kept scrolling, I saw something you haven’t seen often in the current market: a long-duration ETF hitting the outlier list with a massive spike.
The State Street SPDR Portfolio Long-Term Treasury ETF (SPTL) traded $1.7 billion in activity, a spike of over 1,000%. A look at the chart shows the last time this ETF saw that sort of volume was several months ago.
When people start buying long-term treasuries, it can be a sign they are saying, “Maybe I want that duration because I think things are getting a little scary.”
Is This a “Changing of the Guard”?
Look, this could be a complete coincidence. It could just be part of a high-activity day where everything is trading more.
But this is exactly why I watch the Most Active report. It might be nothing, but seeing a significant move out of tech exposure and a simultaneous move into long-term duration could be a little sign of a “changing of the guard.” It’s definitely worth keeping an eye on.
Disclosures
This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.
This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.
