Exchange-traded funds and the wider stock markets have been moving as a group during the volatile “risk-on” and “risk-off” trades and wide swings in market sentiment, ETF Trends reports. The S&P 500 is witnessing a high frequency of “all or nothing” days, according to Bespoke Investment Group. Stocks have been moving in harmony and tend to be moving higher or lower as a group.
Twelve such days have been reported over the last 20 trading days. Year-to-date, the S&P 500 has experienced 32 such days. Volatility because of the credit crisis has led to this increase in the number of “all or nothing” days for some years, but the ETF sector has been the biggest contributor, added Bespoke.
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