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ETFs Winners of S&P 500's Second Best Week in 2022
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U.S. stocks saw a massive jump on the final trading session of last week, with the S&P 500 snapping a three-week losing streak as investors digested the Federal Reserve officials' latest affirmations that they are focused on lowering inflation. The S&P 500 advanced more than 3% on Friday, logging back-to-back days of gains and marking its first weekly advance since late May.
Powell's assertion that the Fed's commitment to handling inflation is "unconditional" indicated that the central bank would not stop hiking rates in modest signs of economic slowdown or recession. The S&P 500 (up 6.45%), the Dow Jones (up 5.4%), the Nasdaq Composite (up 7.5%) and the Russell 2000 (up 6%) saw handsome gains last week.
Cyclical stocks — seen as more vulnerable during downturns — lagged last week, with the energy sector recording a weekly loss and the materials sector also underperforming. West Texas intermediate crude oil futures hovered around $107 per barrel and recorded its third straight weekly loss. The commodity and is on its way to the first monthly loss since November.
Among big market news, Wall Street’s largest banks are ready to return excess capital to shareholders in the form of dividends and share buybacks after all of them cleared the Federal Reserve’s 2022 Stress Test. The annual stress tests were established by the Fed, following the 2008 financial crisis, as a measure to ensure that banks could withstand any similar shock in the future.
This year, all the 34 biggest lenders that tested have cleared the results. The 2022 stress tests’ focus is on an employment crisis that sends the jobless rate to more than 10% for at least two years, plus a 40% drop in commercial real estate prices. While this year’s scenarios were devised before the Russia-Ukraine conflict and the current red-hot inflation, they indicate that the banks are well-prepared for a potential U.S. recession, which is predicted for later this year or the next.
Against this backdrop, below we highlight a few regular ETFs that gained massively last week.
ARKG is an actively managed Exchange Traded Fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies across multiple sectors, including health care, information technology, materials, energy, and consumer discretionary, that are relevant to the Fund’s investment theme of the genomics revolution. The fund charges 75 bps in fees.
ARKK is an actively managed Exchange Traded Fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. The fund charges 75 bps in fees (read: 5 ETFs Up Most on Fed's 75 bps Rate Hike).
The underlying LifeSci Biotechnology Clinical Trials Index is an equal weighted index that is designed to measure the equity market performance of the common stock of U.S. exchange-listed biotechnology companies with a primary product offering that is in a Phase 1, Phase 2 or Phase 3 clinical trial stage of development.The fund charges 79 bps in fees.
Ark Next Generation Internet ETF (ARKW - Free Report) – Up 22%
ARKW is an actively managed Exchange Traded Fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and U.S. exchange-traded foreign equity securities of companies that are relevant to the Fund’s investment theme of next generation internet. The fund charges 83 bps in fees.
The underlying Renaissance IPO Index is a portfolio of newly U.S.-listed initial public offerings of companies whose unseasoned equities are under-represented in core U.S. equity indices. IPOs that meet liquidity & operational screens are included in the Index at the end of the fifth day of trading, or upon quarterly reviews, weighted by tradable float, capped at 10% & removed after two years.The fund charges 60 bps in fees.
The underlying S&P Biotechnology Select Industry Index represents the biotechnology sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Biotech Index is a modified equal weight index. The fund charges 35 bps in fees.
Wisdomtree Cloud Computing Fund (WCLD - Free Report) – Up 20.4%
The underlying BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers. The fund charges 45 bps in fees.
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ETFs Winners of S&P 500's Second Best Week in 2022
U.S. stocks saw a massive jump on the final trading session of last week, with the S&P 500 snapping a three-week losing streak as investors digested the Federal Reserve officials' latest affirmations that they are focused on lowering inflation. The S&P 500 advanced more than 3% on Friday, logging back-to-back days of gains and marking its first weekly advance since late May.
Powell's assertion that the Fed's commitment to handling inflation is "unconditional" indicated that the central bank would not stop hiking rates in modest signs of economic slowdown or recession. The S&P 500 (up 6.45%), the Dow Jones (up 5.4%), the Nasdaq Composite (up 7.5%) and the Russell 2000 (up 6%) saw handsome gains last week.
Cyclical stocks — seen as more vulnerable during downturns — lagged last week, with the energy sector recording a weekly loss and the materials sector also underperforming. West Texas intermediate crude oil futures hovered around $107 per barrel and recorded its third straight weekly loss. The commodity and is on its way to the first monthly loss since November.
Among big market news, Wall Street’s largest banks are ready to return excess capital to shareholders in the form of dividends and share buybacks after all of them cleared the Federal Reserve’s 2022 Stress Test. The annual stress tests were established by the Fed, following the 2008 financial crisis, as a measure to ensure that banks could withstand any similar shock in the future.
This year, all the 34 biggest lenders that tested have cleared the results. The 2022 stress tests’ focus is on an employment crisis that sends the jobless rate to more than 10% for at least two years, plus a 40% drop in commercial real estate prices. While this year’s scenarios were devised before the Russia-Ukraine conflict and the current red-hot inflation, they indicate that the banks are well-prepared for a potential U.S. recession, which is predicted for later this year or the next.
Against this backdrop, below we highlight a few regular ETFs that gained massively last week.
ETFs in Focus
Ark Genomic Revolution ETF (ARKG - Free Report) – Up 24%
ARKG is an actively managed Exchange Traded Fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies across multiple sectors, including health care, information technology, materials, energy, and consumer discretionary, that are relevant to the Fund’s investment theme of the genomics revolution. The fund charges 75 bps in fees.
Ark Innovation ETF (ARKK - Free Report) – Up 23.9%
ARKK is an actively managed Exchange Traded Fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. The fund charges 75 bps in fees (read: 5 ETFs Up Most on Fed's 75 bps Rate Hike).
Bioshares Biotech Clinical Trial (BBC - Free Report) – Up 22.3%
The underlying LifeSci Biotechnology Clinical Trials Index is an equal weighted index that is designed to measure the equity market performance of the common stock of U.S. exchange-listed biotechnology companies with a primary product offering that is in a Phase 1, Phase 2 or Phase 3 clinical trial stage of development.The fund charges 79 bps in fees.
Ark Next Generation Internet ETF (ARKW - Free Report) – Up 22%
ARKW is an actively managed Exchange Traded Fund that seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and U.S. exchange-traded foreign equity securities of companies that are relevant to the Fund’s investment theme of next generation internet. The fund charges 83 bps in fees.
Renaissance IPO ETF (IPO - Free Report) – Up 20.8%
The underlying Renaissance IPO Index is a portfolio of newly U.S.-listed initial public offerings of companies whose unseasoned equities are under-represented in core U.S. equity indices. IPOs that meet liquidity & operational screens are included in the Index at the end of the fifth day of trading, or upon quarterly reviews, weighted by tradable float, capped at 10% & removed after two years.The fund charges 60 bps in fees.
S&P Biotech SPDR (XBI - Free Report) – Up 20.5%
The underlying S&P Biotechnology Select Industry Index represents the biotechnology sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Biotech Index is a modified equal weight index. The fund charges 35 bps in fees.
Wisdomtree Cloud Computing Fund (WCLD - Free Report) – Up 20.4%
The underlying BVP Nasdaq Emerging Cloud Index is an equally weighted Index, designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers. The fund charges 45 bps in fees.