ETF Winners & Losers From Wall Street's Worst Day Since June

Sweta Killa

4 September 2020 at 11:10 am·4-min read

After a massive rally, Wall Street suffered its worst day in almost three months as investors’ dumped the high-flying technology stocks. Concerns over lofty valuations also compelled investors’ to book profits. Deadlock over another financial-aid package, budget negotiations, and election uncertainty added to the chaos.

Though some data points indicate that the economy is gradually returning to pre-pandemic levels, it is still weaker by most measures. Millions of Americans remain out of work, and many industries such as travel, tourism and entertainment are struggling (read: Top-Ranked Mid-Cap ETFs Set to Defy September Curse).

As a result, the S&P 500 and the Nasdaq Composite Index suffered their worst one-day slump since Jun 11, falling 3.5% and 5%, respectively, while the Dow Jones Industrial Average logged in its worst one-day decline of 2.8% since Jun 26.

Dismal Zones

The hot and soaring technology segment went into a freefall with the S&P Information Technology sector tumbling 5.8% and snapping a 10-day winning streak. The sector also logged in its biggest one-day loss since March. Zoom Video Communications ZM — the hottest stock of the stay-at-home trend — plunged 10% on the day while Apple AAPL dropped 8%, marking its biggest one-day decline since Mar 16. Microsoft MSFT slid more than 6% while Alphabet GOOGL lost 5% in value. Amazon AMZN, Netflix NFLX and Facebook FB were both down nearly 4% each.

While all tech ETFs saw terrible trading, WisdomTree Cloud Computing Fund WCLD stole the show, tumbling 8.2%. Invesco DWA Healthcare Momentum ETF PTH, ARK Innovation ETF ARKK, iShares North American Tech-Multimedia Networking ETF IGN, Invesco Dynamic Networking ETF PXQ and First Trust Nasdaq Semiconductor ETF FTXL saw decline of at least 7% each.

The consumer discretionary and communications services sector also dropped with Invesco DWA Consumer Cyclicals Momentum ETF PEZ and Proshares Online Retail ETF ONLN shedding nearly 6% each. Alternative energy ETFs Invesco Solar ETF TAN and First Trust Nasdaq Clean Edge Green Energy Index Fund QCLN also dropped 7.7% and 7.2%, respectively (read: Cyclical ETFs to Gain on Vaccine Progress & Market Optimism).

Winning Zones

The CBOE Volatility Index (VIX), also known as the fear gauge, spiked as much as 26% to 33.45 — the highest reading in seven weeks. As a result, volatility ETFs outperformed in yesterday’s trading session with iPath Series B S&P 500 VIX Short-Term Futures ETN VXX and ProShares VIX Short-Term Futures ETF VIXY gaining more than 13% each.

Low-risk products gained as these provide some shelter during market turmoil. Cambria Tail Risk ETF TAIL and AGFiQ US Market Neutral Value Fund CHEP were up 1.6% each. AdvisorShares Dorsey Wright Short ETF DWSH and The Core Alternative ETF CCOR gained nearly 1% each.

The market sell-off has raised the appeal of the U.S. government bonds tracking the long end of the yield curve. PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF ZROZ, Schwab Long-Term U.S. Treasury ETF SCHQ, SPDR Portfolio Long-Term Treasury ETF SPTL, Vanguard Long-Term Government Bond ETF VGLT and iShares 20+ Year Treasury Bond ETF TLT were in the green with less than 1% gains (read: 10 Power-Packed ETFs to Buy for Second-Half 2020).

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

The Argus
Police warning to passengers parking at Gatwick airport
Police have issued a warning to passengers planning to park at Gatwick airport.
14 hours ago
Wales Online
Europe's worst country for pickpockets is a major tourist destination but it's not Spain
New research has revealed the worst country in Europe for pickpockets - and it's a popular holiday destination for Brits
19 hours ago
OK! Magazine
Amanda Holden, 53, floors fans as she poses in bra after admitting 'I couldn't find a top'
Amanda Holden, 53, looked sensational as she showed off her latest outfit to host Heart FM despite "not being able to find a top" as she opted for just a bra and jacket
20 hours ago
Birmingham Live
Police race to man spotted walking along the M6 who tells them unbelievable story
Officers rushed to reach the man after he was spotted walking dangerously close to traffic
16 hours ago
The Telegraph
Russia has found the critical vulnerability in Nato’s American tanks
The arrival of the US M1A1 Abrams tanks in Ukraine was hailed as a turning point in the war. Coming in at roughly $10 million a unit, the Nato stalwart was supposed to provide the armoured fist that would punch through the Russian lines. But tactics evolve quickly in warfare, and Russia’s use of surveillance and hunter-killer drones has led to heavy casualties for Ukraine’s tank fleets. This is alarming for NATO. If Russia has found critical vulnerabilities in our armour, our borders are beginni
16 hours ago
Daily Record
Giant rat found trapped in Glasgow garden bird feeder as homeowner left horrified
The moment was filmed by a Pollok resident who was left disgusted after spotting the vermin from her kitchen window in the Templeland Road area of Glasgow.
2 days ago
Chronicle Live
Gardeners share unusual method to keep slugs away from plants using bathroom cupboard staple
One gardener shared the hack to deter slugs and snails from plant pots, with others saying the method 'works every year' for them
18 hours ago
The Telegraph
What makes Britain look so great to migrants in France?
Following the latest Channel tragedy on Tuesday when five people, including a seven-year-old girl, died, one local French mayor squarely blamed Britain.
a day ago
The Telegraph
Ireland is paying the price for its Brexit arrogance
Leo Varadkar left his job as Irish prime minister last month with compliments being lavished on him from all directions — especially the White House — for his triumph over Brexit Britain in forcing the retention of an open land border on Northern Ireland.
2 days ago
Leicestershire Live
ITV For the Love of Dogs fans spot Alison Hammond's 'bad habit' as ratings plummet
For the Love of Dogs viewers were left fuming during the latest episode of the long-running ITV show
2 days ago
OK! Magazine
Prince William gives 14-word update on Kate Middleton during surprise school visit
Prince William made a surprise visit to a school in the West Midlands today, where he issued a 14-word update on his wife, Kate Middleton, amid her cancer treatment
a day ago
Birmingham Live
Health update on horses that ran through London as fears grow for one
Vida was treated by vets for lacerations which saw its coat soaked in blood but Quaker was in an equine hospital with its future "not looking good", sources said
22 hours ago
Stoke on Trent Live
DWP benefit that few know about leaves gran £4k a year better off
Yvonne Bailey, 78, says it has made a 'huge difference' to her life
16 hours ago
Birmingham Live
Prince Harry reveals 'worry' over William and Kate's children
Prince Harry's relationship with his brother may be strained but he still worries for his brother's children
15 hours ago
The Northern Echo
Good Morning Britain fans shocked to discover presenter Adil Ray's actual age
Fans of the popular ITV programme Good Morning Britain (GMB) have been left shocked after discovering presenter Adil Ray's actual age.
16 hours ago
Manchester Evening News
Helen Flanagan 'obsessed' as she shows off the results of latest procedure after keeping boob job 'secret'
The actress took to social media to reveal the work she'd had done
20 hours ago
Storyful
Dog Eats Chocolate Bar as Final Treat Before Being Put to Sleep
A man gave his dying dog a chocolate bar – a treat dogs love but that is toxic to them – as a final gesture of love before she was put to sleep on April 23.Footage recorded by Miller Hurtado Toro shows his dog Sharon enjoying the tasty sweet before she was injected with euthanizing drugsToro told Storyful that Sharon was 12 years old and had been fighting the tick-borne canine disease ehrlichiosis for two years.“We tried to take her to find more treatments, but they saw that she had lung cancer, with metastases in her lungs and liver that were making her weak from just lying down,” Toro said.“The day before yesterday, she could not get up again, and that is when I made the decision,” he explained.Toro said he had often denied Sharon a taste of chocolate as the candy is notably bad for dogs’ health, but that he thought she should try it as her final treat.“No dog should leave without first trying chocolate,” Toro said. Credit: Miller Hurtado Toro via Storyful
13 hours ago
Hello!
Giovanni Pernice publicly declares his love for new girlfriend with intimate photo
Strictly Come Dancing star Giovanni Pernice looked so loved up alongside a photo with his new girlfriend. See photo.
15 hours ago
Edinburgh Live
Dad with six months to live gets 'second shot of life' as Edinburgh medics make surprising discovery
Callum Laing, 40, was diagnosed with a stage 4 Glioblastoma brain tumour, after he had been suffering from intense headaches - but surgeons in Edinburgh have made a surprising discovery.
2 days ago
Country Living
Royal Expert Says Prince Harry Is in a "Painful Place" Due to Writing About Kate Middleton in 'Spare'
A royal expert says Prince Harry is in a painful place after writing about Kate Middleton in his bombshell-filled memoir, 'Spare.'
a day ago

Dismal Zones

Winning Zones

Want key ETF info delivered straight to your inbox?

Latest stories