ETF Trading Surges to Record as Bulls and Bears Play Tug-of-War
- Dollar value of ETF shares traded hits highest ever, data show
- Institutions trade ETFs first when altering portfolios: BI
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The stock market’s dramatic turns are fueling record trading in ETFs, the highly liquid investment vehicles that traders are using to keep pace with surging volatility.
As the Nasdaq Composite Index tumbled as much as 4.9% Monday then rallied back to a late day gain, four of the five largest exchange-traded ETFs -- which go by the tickers IVV, VTI, VOO and QQQ -- saw a record value of shares traded. The largest ETF by market value -- the SPDR S&P 500 ETF Trust (SPY) -- saw its second highest.