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The color of Wall Street was red on Black Friday 2021 with the Dow Jones Industrial Index losing 2.53% in its worst post-Thanksgiving Day performance since 1931. The S&P 500 and the Nasdaq Composite posted their worst-ever returns post-Thanksgiving Day. The Russell 2000 lost 3.67% on Nov 26. Crude oil retreated 13% on that day, leaving investors scrambling to find a green corner in Wall Street on Black Friday.
The market rout was traced to the new variant of COVID-19 (first found in South Africa), which is named ‘Omicron.’ Europe enacted lockdown last week only due to rising cases that made global investors unnerved. Now, the news of Omicron has given the global market a more ominous signal. The World Health Organization called the variant “highly transmissible.”
Cases of the new variant were found in Hong Kong, Belgium and Tel Aviv as well as in major South African cities like Johannesburg. Flights between South Africa and Europe were being subject to quarantine or being shut down altogether. Airline stocks have been battered already. All these raised worries regarding the sustainability of economic recovery from the pandemic-led slump. The flight to safety brought down the U.S. treasury yield to 1.48% on Nov 26 from 1.64% the day before.
All these factors led to the surge in inverse ETFs on Nov 26. Below we highlight a few inverse ETFs that gained handsomely on that day.
ETFs in Focus
Trust Ultra VIX Short Term Futures ETF (UVXY - Free Report) – Up 37.4%
The underlying S&P 500 VIX Short-Term Futures Index measures the returns of a portfolio of monthly VIX futures contracts that rolls positions from first-month contracts into second-month contracts on a daily basis. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 0.95%.
The underlying Bloomberg Commodity Balanced WTI Crude Oil Index is intended to reflect the crude oil segment of the commodities market. The index consists of futures contracts on crude oil only. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 0.95%.
S&P 500 High Beta Bear 3X Direxion (HIBS - Free Report) – Up 11.7%
The underlying S&P 500 High Beta Index selects 100 securities from the S&P 500 Index that have shown the highest sensitivity to beta over the past 12 months. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 1.08%.
Ultrapro Short Russell 2000 ETF (SRTY - Free Report) – Up 11.2%
The underlying Russell 2000 Index consists of 2,000 of the smallest U.S.-domiciled, publicly traded common stocks included on the Russell 3000 Index. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 0.95%.
The underlying MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The expense ratio of Emerging Markets Bear 3X Direxion is 1.10%.
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5 Inverse ETFs Up Over 10% on Black Friday
The color of Wall Street was red on Black Friday 2021 with the Dow Jones Industrial Index losing 2.53% in its worst post-Thanksgiving Day performance since 1931. The S&P 500 and the Nasdaq Composite posted their worst-ever returns post-Thanksgiving Day. The Russell 2000 lost 3.67% on Nov 26. Crude oil retreated 13% on that day, leaving investors scrambling to find a green corner in Wall Street on Black Friday.
The market rout was traced to the new variant of COVID-19 (first found in South Africa), which is named ‘Omicron.’ Europe enacted lockdown last week only due to rising cases that made global investors unnerved. Now, the news of Omicron has given the global market a more ominous signal. The World Health Organization called the variant “highly transmissible.”
Cases of the new variant were found in Hong Kong, Belgium and Tel Aviv as well as in major South African cities like Johannesburg. Flights between South Africa and Europe were being subject to quarantine or being shut down altogether. Airline stocks have been battered already. All these raised worries regarding the sustainability of economic recovery from the pandemic-led slump. The flight to safety brought down the U.S. treasury yield to 1.48% on Nov 26 from 1.64% the day before.
All these factors led to the surge in inverse ETFs on Nov 26. Below we highlight a few inverse ETFs that gained handsomely on that day.
ETFs in Focus
Trust Ultra VIX Short Term Futures ETF (UVXY - Free Report) – Up 37.4%
The underlying S&P 500 VIX Short-Term Futures Index measures the returns of a portfolio of monthly VIX futures contracts that rolls positions from first-month contracts into second-month contracts on a daily basis. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 0.95%.
Ultrashort Bloomberg Crude Oil ETF (SCO - Free Report) – Up 21.7%
The underlying Bloomberg Commodity Balanced WTI Crude Oil Index is intended to reflect the crude oil segment of the commodities market. The index consists of futures contracts on crude oil only. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 0.95%.
S&P 500 High Beta Bear 3X Direxion (HIBS - Free Report) – Up 11.7%
The underlying S&P 500 High Beta Index selects 100 securities from the S&P 500 Index that have shown the highest sensitivity to beta over the past 12 months. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 1.08%.
Ultrapro Short Russell 2000 ETF (SRTY - Free Report) – Up 11.2%
The underlying Russell 2000 Index consists of 2,000 of the smallest U.S.-domiciled, publicly traded common stocks included on the Russell 3000 Index. The expense ratio of Trust Ultra VIX Short Term Futures ETF is 0.95%.
Emerging Markets Bear 3X Direxion (EDZ - Free Report) – Up 10%
The underlying MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The expense ratio of Emerging Markets Bear 3X Direxion is 1.10%.