When selecting exchange-traded funds (ETFs) to buy, relative volume can be a key indicator of market interest and activity. Using the TipRanks ETF Screener, we’ve identified three ETFs currently experiencing significantly higher trading volumes, which could make them a Buy. This surge in volume activity suggests growing market attention, offering several benefits for investors.
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Relative volume compares an ETF’s current trading volume to its average over the past three months, providing insights into how actively it’s being traded.
Higher relative volume often translates to better liquidity, as increased trading activity typically results in smoother transactions. With more buyers and sellers actively participating, the bid-ask spread—the gap between the price buyers are willing to pay and the price sellers will accept—tends to narrow. A smaller spread lowers trading costs, enabling investors to execute trades more efficiently.
In short, ETFs with higher relative volume not only attract attention but also create an environment where trading is more cost-effective and seamless.
T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ)
The T-Rex 2X Inverse MSTR Daily Target ETF (MSTZ) provides inverse exposure to the daily price movement of MicroStrategy stock (MSTR) and was launched earlier this year. This ETF is trading at more than 2.65 times its average trading volume over the past three months, indicating heightened investor activity.
The ETF could be attracting interest from investors looking to bet against MSTR, which has surged by more than 200% over the past three months due to its growing crypto holdings. Additionally, Bitcoin’s (BTC-USD) price has jumped by over 75% during the same period. Despite this, the MSTZ ETF has plummeted by more than 90% over the past three months.
T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ)
The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) makes another appearance on the best ETFs list this week, with the ETF trading at 1.74 times the average volume over the past three months. This rise in investor interest could be due to Tesla (TSLA) being perceived as largely benefiting from the results of the U.S. elections, with Musk firmly backing President-elect Trump. Year-to-date, TSLZ has declined by more than 80%.
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR)
The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) offers investors exposure to stocks listed on mainland Chinese markets in Shanghai and Shenzhen. The ETF is trading at 1.67 times its average volume over the past three months. Year-to-date, the ASHR ETF has risen by more than 10%.
Key Takeaway
In conclusion, these three ETFs—MSTZ, TSLZ, and ASHR—are experiencing heightened investor interest, as reflected by their increased trading volumes. Each ETF offers exposure to distinct market dynamics: MSTZ targets a bearish bet against MicroStrategy, TSLZ focuses on Tesla’s potential volatility, and ASHR provides access to China’s A-shares market. Despite recent performance challenges, these ETFs could attract investors looking for opportunities in volatile sectors, with their higher relative volume indicating growing attention in the market.
