Best And Worst ETFs Of The Week Amid Market Rebound

The stock market slump reversed course this week as traders looked to overcome the downside momentum that threatened to erase 2014 gains.

On Friday, the SPDR S&P 500 ETF SPY jumped 1 percent on better-than-expected earnings announcements and comments from Federal Reserve officials that steadied the markets.

SPY initially fell below its 200-day moving average earlier in the week for the first time since 2012. Friday’s gains helped recoup some, but not all, of the weekly losses that have accompanied this volatile month.

The following ETFs represent a sample of the best- and worst-performing funds over the last five trading sessions.

BEST: Biotechnology Stocks

Biotechnology stocks have been a market leader for the majority of this five-year bull market, and they returned to that dominant status this week. The SPDR S&P Biotechnology ETF XBI jumped 7 percent in a sharp rise that may have further to develop.

Related Link: A Look At 3 Ebola And African-Related ETFs

XBI tracks a modified equal-weight index of 85 biotechnology companies and has gained more than 20 percent this year. The weighting methodology in XBI is unique in that smaller companies are able to have a larger impact on the total performance of the fund.

The threat of Ebola becoming a wide spread issue is partly responsible for this recent jump. However, this ETF will once again be on momentum traders radars in the weeks ahead as this industry group attempts to breakout to new highs.

WORST: Egyptian Equities

The slump in oil prices significantly altered the landscape for Middle East stocks this week, and Egyptian equities were one area that was put to the test. The Market Vectors Egypt Index ETF EGPT fell more than 7 percent over the last five trading sessions and is more than 20 percent off its 2014 highs.

EGPT tracks 42 mid- and small-cap companies that are based in or derive a significant portion of their revenue from Egypt. The economically sensitive nature of crude oil is likely to weigh on EGPT and similar regional ETFs unless this commodity is able to mount a comeback rally.