React to Real-Time Tariff News with Expanded List of Overnight ETF Products from TD Ameritrade

With TD Ameritrade offering an expanded list of ETFs available for overnight trading, investors can react to tariff-related and other overseas news as it happens.

https://tickertapecdn.tdameritrade.com/assets/images/pages/md/Overnight ETF trading for tariff news
5 min read
Photo by Getty Images

Key Takeaways

  • TD Ameritrade now provides overnight access to 10 additional exchange-traded funds (ETFs) for a total of 24

  • These additional overnight ETFs give investors a chance to trade tariff news as it happens

  • Products allow focus on Asia, technology, and finance, with an emphasis on liquidity

Losing sleep over the trade battle with China? Does it seem like lots of market-moving tariff news hits after the sun sets? Well, starting this month, TD Ameritrade will have a total of 24 exchange-traded funds (ETFs)—10 of them newly added to the list—that can give you access to overnight markets, including markets most closely associated with trade issues.

Some of these ETFs provide access to markets overseas outside of normal U.S. business hours. Other new additions include funds covering technology, financial services, and energy, all of which can sometimes move due to overseas events in the predawn U.S. hours.

“We’ve worked with our teams to select products that have sufficient liquidity overnight so you can be confident knowing there are more opportunities 24 hours a day, five days a week, from 8 p.m. ET Sunday through 8 p.m. ET Friday,” said Eric Vicedomini, manager, trader product marketing at TD Ameritrade. “These new additions are also a little more globally focused to allow you to react to news overnight.”

As a primary goal, TD Ameritrade wanted to ensure the new ETFs would have deep liquidity and tight quotes to create an experience as close as possible to what it’d be like to trade in these markets during the day.

“In order to do that, we wanted to try and select symbols that would be correlated to other markets and products that were trading at the same time,” Vicedomini said. “In addition, we also tried to broaden the offering by selecting ETFs that offered different exposure than the 14 symbols that were originally rolled out.”

Additional ETFs to be included:
iShares Core U.S. Aggregate Bond ETF (AGG)iShares Core S&P Mid-Cap ETF (IJH)
ProShares Short Dow 30 (DOG)Vanguard Total Stock Market ETF (VTI)
iShares MSCI EAFE ETF (EFA)Energy Select Sector SPDR Fund (XLE)
iShares MSCI Australia ETF (EWA)Financial Select Sector SPDR Fund (XLF)
iShares MSCI Japan ETF (EWJ)Technology Select Sector SPDR Fund (XLK)
Existing securities:
SPDR Dow Jones Industrial Average ETF (DIA)ProShares Short Russell 2000 (RWM)
iShares MSCI Emerging Markets ETF (EEM)ProShares Short S&P500 (SH)
iShares China Large-Cap ETF (FXI)iShares Silver Trust (SLV)
SPDR Gold Shares (GLD)SPDR S&P 500 ETF Trust (SPY)
iShares Russell 2000 ETF (IWM)iShares 20+ Year Treasury Bond ETF (TLT)
ProShares Short QQQ (PSQ)United States Natural Gas (UNG)
Invesco QQQ Trust (QQQ)United States Oil (USO)

Where the Overnight Action Is

The additional overnight products include securities focused on gold, silver, Treasury bonds, natural gas, technology, financials, emerging markets, China stocks, crude oil, and more. Tariff battles in Asia are one potential area where overnight trading can come in handy. There’s also the volatile Technology sector, where many companies face potential antitrust issues that could cause quick stock price moves.

One of the drawbacks of trading markets only during U.S. business hours is that if news breaks or events happen later on, there’s no way to act on it. But with overnight trading you can, and many traders do—as evidenced recently by heavy trading as the U.S./China spat surged back into the headlines in mid-2019. Brexit hasn’t gone away, either, and remember that it caused extremely heavy volume overnight back in 2016 when the original referendum passed.

On a cautionary note, international and emerging markets investments involve special risks, including currency fluctuations and political and economic instability.

Futures: Another Overnight Opportunity

Aside from the additional overnight ETFs, TD Ameritrade also provides access to trading in the futures markets. Qualified investors can trade more than 70 futures products virtually 24 hours a day, six days a week through TD Ameritrade Futures and Forex, LLC. You can also get access to powerful platforms, technical studies, immersive education, futures trading support, as well as the paperMoney® virtual trading platform where you can test your strategies before putting real money on the line.

But even more important than initiating positions in the overnight sessions is the way futures can potentially be used to help manage risk in an equity portfolio.

When potentially market-moving news breaks outside of normal trading hours, you’ll often see it show up first in the futures market. This early warning signal can potentially be used to help manage risk in a portfolio. For example, if you’re holding a basket of stocks that tracks the S&P 500 Index and news begins to unfold overnight, you could trade /ES (E-mini S&P 500 Index futures) as a way to hedge your portfolio against a down open.

If you’re holding several energy companies, the same thing could be done with /CL (crude oil futures) or any number of other futures contracts that correlate with your positions. Because futures virtually trade 24/6, they offer an important tool that can help neutralize overnight risk.

On a cautionary note, futures and futures options trading is speculative, and isn't suitable for all investors. Please read the Risk Disclosure for Futures and Options prior to trading futures products. Also, consider keeping in mind that futures accounts aren't protected by the Securities Investor Protection Corporation (SIPC).

Potential opportunities may also present themselves overnight. They can be tied to all kinds of financial and geopolitical events, but some of the main ones to watch include interest rate announcements by the European Central Bank (ECB) and the Bank of Japan (BoJ), as well as economic reports coming out of China, most of which are scheduled ahead of time just like in the United States.

You can also look for market-moving news out of Asia when the Tokyo Stock Exchange opens at 7 p.m. CT and in Europe when the London Stock Exchange opens at 2 a.m. CT.

Even if you’re the type who needs eight hours of sleep each night, you’ll still be awake for a good portion of the overnight session, allowing you to trade markets then. And although your primary focus may be on the regular session, it’s good to know that, if needed, you have the ability to take an active part in the markets no matter what time of day—or night—and whether you trade ETFs, futures, or both. 

More Things to Know

Here are some additional items to consider if you’re thinking about overnight ETF trading:

- 24/5 trading of ETFs is only available through the thinkorswim® platform from TD Ameritrade and Mobile Trader platforms. 

- You need to have “Advanced Features” enabled.

- Trading after normal market hours comes with unique and additional risks, such as lower liquidity and higher price volatility. Your order may only be partially executed, or not at all. 

- For additional information, here’s where you can learn more about the 24/5 trading program.

Overnight trading session
FIGURE 1: THE OVERNIGHT SESSION. This chart plots prices in 5-minute intervals from the time markets close in the U.S. until they open the next day. The blue lines show the trading hours of overseas markets. Chart source: the thinkorswim® platform from TD Ameritrade. For illustrative purposes only. Past performance does not guarantee future results.
Print

Key Takeaways

  • TD Ameritrade now provides overnight access to 10 additional exchange-traded funds (ETFs) for a total of 24

  • These additional overnight ETFs give investors a chance to trade tariff news as it happens

  • Products allow focus on Asia, technology, and finance, with an emphasis on liquidity
Call Us
800-454-9272

Carefully consider the investment objectives, risks, charges and expenses before investing. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Read carefully before investing.

ETFs are subject to risk similar to those of their underlying securities, including, but not limited to, market, investment, sector, or industry risks, and those regarding short-selling and margin account maintenance. Some ETFs may involve international risk, currency risk, commodity risk, leverage risk, credit risk, and interest rate risk.  Performance may be affected by risks associated with nondiversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small-capitalization securities, and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.   Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).

*ETFs purchased commission-free that are available on the TD Ameritrade ETF Market Center are available generally without commissions when placed online in a TD Ameritrade account. Other fees may apply for trade orders placed through a broker or by automated phone.

TD Ameritrade receives remuneration from ETFs that participate in the commission-free ETF program for shareholder, administrative and/or other services.

Asset allocation and diversification do not eliminate the risk of experiencing investment losses.

paperMoney® Trading: This software application is for educational purposes only. Successful virtual trading during one time period does not guarantee successful investing of actual funds during a later time period as market conditions change continuously.



Market volatility, volume, and system availability may delay account access and trade executions.

Past performance of a security or strategy does not guarantee future results or success.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.

The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2019 TD Ameritrade.

Scroll to Top