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Wall Street continued to remain downbeat last week with the S&P 500 (down 3.3%), the Dow Jones (down 2.5%), the Nasdaq Composite (down 3.9%) and the Russell 2000 (down 4%) seeing massive loses. This happened on the likelihood of faster monetary policy tightening by the Federal Reserve.
St. Louis Fed President James Bullard recently said that he seeks rising rates by 3% to 3.25% in the second half of 2022, while Chicago Fed President Charles Evans and his Atlanta counterpart Raphael Bostic said they favor raising rates to neutral. As a result, bond yields rose. The benchmark U.S. treasury yield jumped to 2.89% on Apr 29, 2022 from 2.81% recorded at the start of the week.
Moreover, Fed Chairman Jerome Powell said lately that the central bank is committed to raising rates “expeditiously” to tame inflation. Investors took the statement as an interest rate hike of 50 basis points in May as inflation is at a 40-year high. “It’s absolutely essential to restore price stability,” Powell added, per a CNBC article.
Meanwhile, the American economy shrank an annualized 1.4% sequentially in Q1 of 2022, well below market forecasts of a 1.1% expansion and the 6.9% expansion in Q4 of 2021, owing a record trade deficit and a fall in inventory investment. Rising Omicron infections to start the year weighed on activity across the board, while 40-year high inflation and the Russian invasion of Ukraine also contributed to the economic crisis.
An 8.5% decline in defense spending was a particular drag, chopping off one-third of a percentage point from the final GDP reading. Consumer spending, which is the key part of the GDP scorecard, rose 2.7%, but that came amid a 7.8% increase in prices. Fixed investment (7.3% versus 2.7%), particularly nonresidential, also contributed positively to GDP.
Against this backdrop, below we highlight a few winning ETFs of last week.
ETFs in Focus
KraneShares Trust CSI China Internet ETF (KWEB - Free Report) – Up 12.5%
The underlying CSI Overseas China Internet Index is designed to measure the performance of the investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors. The fund charges 70 bps in fees.
The underlying S&P 500 VIX Short-Term Futures Index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for one month in the future. The fund charges 85 bps in fees.
Tuttle Capital Short Innovation ETF (SARK - Free Report) – Up 10.2%
This ETF is active and does not track a benchmark. The Tuttle Capital Short Innovation ETF is an actively managed exchange traded fund that attempts to achieve the inverse of the return of the ARK Innovation ETF for a single day. The fund charges 75 bps in fees.
US 12 Month Natural Gas ETF (UNL - Free Report) – Up 10.1%
The underlying Natural Gas Price Index is the near-month futures contract to expire and the contracts for the following 11 months, for a total of 12 consecutive months. The fund charges 90 bps in fees.
iPatha.B Agriculture Subindex TR ETN – Up 10%
The underlying Bloomberg Agriculture Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on agriculture commodities. The fund charges 45 bps in fees.
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Top-Performing ETF Areas of Last Week
Wall Street continued to remain downbeat last week with the S&P 500 (down 3.3%), the Dow Jones (down 2.5%), the Nasdaq Composite (down 3.9%) and the Russell 2000 (down 4%) seeing massive loses. This happened on the likelihood of faster monetary policy tightening by the Federal Reserve.
St. Louis Fed President James Bullard recently said that he seeks rising rates by 3% to 3.25% in the second half of 2022, while Chicago Fed President Charles Evans and his Atlanta counterpart Raphael Bostic said they favor raising rates to neutral. As a result, bond yields rose. The benchmark U.S. treasury yield jumped to 2.89% on Apr 29, 2022 from 2.81% recorded at the start of the week.
Moreover, Fed Chairman Jerome Powell said lately that the central bank is committed to raising rates “expeditiously” to tame inflation. Investors took the statement as an interest rate hike of 50 basis points in May as inflation is at a 40-year high. “It’s absolutely essential to restore price stability,” Powell added, per a CNBC article.
Meanwhile, the American economy shrank an annualized 1.4% sequentially in Q1 of 2022, well below market forecasts of a 1.1% expansion and the 6.9% expansion in Q4 of 2021, owing a record trade deficit and a fall in inventory investment. Rising Omicron infections to start the year weighed on activity across the board, while 40-year high inflation and the Russian invasion of Ukraine also contributed to the economic crisis.
An 8.5% decline in defense spending was a particular drag, chopping off one-third of a percentage point from the final GDP reading. Consumer spending, which is the key part of the GDP scorecard, rose 2.7%, but that came amid a 7.8% increase in prices. Fixed investment (7.3% versus 2.7%), particularly nonresidential, also contributed positively to GDP.
Against this backdrop, below we highlight a few winning ETFs of last week.
ETFs in Focus
KraneShares Trust CSI China Internet ETF (KWEB - Free Report) – Up 12.5%
The underlying CSI Overseas China Internet Index is designed to measure the performance of the investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors. The fund charges 70 bps in fees.
Trust VIX Short-Term Futures ETF (VIXY - Free Report) – Up 12.4%
The underlying S&P 500 VIX Short-Term Futures Index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for one month in the future. The fund charges 85 bps in fees.
Tuttle Capital Short Innovation ETF (SARK - Free Report) – Up 10.2%
This ETF is active and does not track a benchmark. The Tuttle Capital Short Innovation ETF is an actively managed exchange traded fund that attempts to achieve the inverse of the return of the ARK Innovation ETF for a single day. The fund charges 75 bps in fees.
US 12 Month Natural Gas ETF (UNL - Free Report) – Up 10.1%
The underlying Natural Gas Price Index is the near-month futures contract to expire and the contracts for the following 11 months, for a total of 12 consecutive months. The fund charges 90 bps in fees.
iPatha.B Agriculture Subindex TR ETN – Up 10%
The underlying Bloomberg Agriculture Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on agriculture commodities. The fund charges 45 bps in fees.