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Best ETF Areas of Last Week

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Wall Street was moderately downbeat last week with the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 losing 1.2%, 0.2%, 2.6% and 2.9%, respectively. Among the key datapoints that released last week was retail sales.

Retail sales in the United States unexpectedly stalled in July of 2022, missing market expectations of a 0.1% increase as sales declined at gasoline stations and car dealers. Consumer spending makes up about 70% of U.S. economic activity. Thus, any gain/loss in it will likely brighten/hamper the economic growth picture.

 U.S. President Joe Biden has also signed a $740 billion climate change, healthcare and tax ‘Inflation Reduction Act.’ The coming Democratic message will likely focus on the aspects of the bill that could improve Americans' lives immediately — including tax credits for electric vehicles and energy-efficient home improvements and key health care provisions (read: Inflation Reduction Act: Clean Energy & EV ETFs Winners).

"This is a significant piece of legislation that will have both immediate impact and longer-term economic impact, as well,” Brian Deese, Biden’s top economic adviser, told Yahoo Finance Live on Tuesday. "The goal of this bill is to do what fiscal policy can do at our current economic moment."

The Dow Jones reclaimed 34,000 last week. The Dow Jones Industrial Average closed above 34,000 for the first time since May, led by a jump in the retail space. Notably, the blue-chip index has significant exposure to the cyclical sectors like retail and consumer discretionary.

The stronger-than-expected results from retailers like Walmart (WMT - Free Report) and Home Depot (HD - Free Report) spread an air of optimism as the solid results suggest strong consumer spending despite the recessionary fears and higher inflation (read: Dow Jones Reclaims 34,000: ETFs to Ride On).

U.S. benchmark treasury yields shot up last week as it started the week at 2.79% and ended the week at 2.98%. Against this backdrop, below we highlight a few best-performing ETF areas of the last week.

ETFs in Focus

Tuttle Capital Short Innovation ETF (SARK - Free Report) – Up 15.4%

This ETF is active and does not track a benchmark. The AXS Short Innovation Daily ETF seeks the daily inverse investment results and is intended to be used as a short-term trading vehicle.

Simplify Interest Rate Hedge ETF (PFIX - Free Report) – Up 13.3%

This ETF is active and does not track a benchmark. The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income.

Kraneshares Global Carbon Offset Strategy ETF – Up 11.4%

This ETF is active and does not track a benchmark. The KraneShares Global Carbon Offset Strategy ETF provides broad coverage of the voluntary carbon market by tracking carbon offset futures contracts.

iPatha.B Energy Subindex TR ETN – Up 10.8%

The underlying Bloomberg Energy Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on energy commodities.

Kraneshares European Carbon Allowance ETF (KEUA - Free Report) – Up 7.9%

The IHS Markit Carbon EUA Index tracks the most traded EUA futures contracts. The KraneShares European Carbon Allowance Strategy ETF is benchmarked to the IHS Markit Carbon EUA Index.

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