The Best And Worst ETFs Of The Week Amid European Quantitative Easing

The implementation of unprecedented quantitative easing efforts in Europe was officially introduced this week.  In an effort to combat deflation, the European Central Bank will begin purchasing 60 billion euros of sovereign bonds per month through September 2016. 

This news roiled the currency and stock markets both in the U.S. and abroad.  The CurrencyShares Euro Trust (FXE) fell to new 52-week lows, while the SPDR S&P 500 ETF (SPY) rallied heartily on the news that additional liquidity would be fed to key international markets.    SPY is currently hovering near the flat line for the year after experiencing a modest drop in the initial days of 2015. 

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

BEST: Russian Stocks

Russia was one of the strongest emerging market countries this week as the Market Vectors Russia ETF (RSX) tries to recover from the steep toll that deflating crude oil prices has exacted.  RSX gained over 6 percent during the holiday-shortened trading week and is more than 10 percent higher so far this year. 

This ETF has $1.5 billion invested in 49 publicly traded stocks domiciled in Russia.  The energy sector represents more than 43 percent of the total asset allocation in RSX, which is why tumbling oil and gas prices hastened declines last year. 

WORST: Volatility Futures

The march higher in stocks this week coincided with a decline in volatility indexes.  The iPath S&P 500 VIX Short-Term Futures ETN (VXX) fell more than 12 percent as traders reduced their bearish positions in U.S. equities. 

VXX tracks near-term volatility futures as measured by the CBOE VIX Volatility Index.  The VIX Index is a well-known gauge of fear in the marketplace and is calculated according to implied volatility of S&P 500 options contracts. 

VXX typically spikes during periods of stock market declines and falls when stocks resume higher or enter a period of consolidation.  This exchange-traded note has over $800 million in total assets and charges an expense ratio of 0.89 percent.