We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fed Raises Rate by Another 75 Bps: 5 ETFs That Gained
Read MoreHide Full Article
The Federal Reserve delivered another rate hike by three-quarters of a percentage point in its latest FOMC meeting concluded yesterday. This marks the fourth consecutive rate hike of 75 bps and pushes the benchmark rate to 3.75%-4%, its highest level since 2008. The decision led to dismal trading in U.S. equities.
Though terrible trading in the stock world pushed the ETF space into deep red on the day, a few ETFs still saw strength. These include AdvisorShares Dorsey Wright Short ETF (DWSH - Free Report) , AdvisorShares Ranger Equity Bear ETF (HDGE - Free Report) , ProShares VIX Short-Term Futures ETF (VIXY - Free Report) , AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report) and Simplify Managed Futures Strategy ETF (CTA - Free Report) .
The Fed’s sixth rate hike this year has made mortgages and other consumer and business loans increasingly expensive, increasing the risk of a recession. The central bank believes that higher rates will push up borrowing costs, cool the economy and bring down price inflation (read: Top-Ranked ETFs That Beat the Market in October).
The central bank also signaled that future increases in borrowing costs could be made in smaller steps to account for the “cumulative tightening of monetary policy” it has enacted so far.
Let’s dig into the detail of the above-mentioned ETFs:
AdvisorShares Dorsey Wright Short ETF (DWSH - Free Report) – Up 4.8%
AdvisorShares Dorsey Wright Short ETF is an actively managed fund that short sells U.S. large-cap securities with the highest relative weakness within an investment universe primarily comprising large-capitalization U.S.-traded equities. It holds 104 stocks in its basket, with consumer discretionary taking the largest share at 22.8%, while energy and healthcare round off the next two spots (read: Dow Jones Logs Best Month Since 1976: ETFs to Bet On).
AdvisorShares Dorsey Wright Short ETF trades in a good average daily volume of 153,000 shares and has accumulated $48.3 million in its asset base. It charges a higher annual fee of 2.77%.
AdvisorShares Ranger Equity Bear ETF is actively managed and seeks capital appreciation by taking short positions in a number of U.S.-listed companies with low earnings quality or aggressive accounting practices. The managers will look to identify earnings-driven events that could lead to price declines, such as downward earnings revisions or reduced forward guidance — the two factors that can spell trouble for a company. These securities with potentially weak fundamentals will underperform in a crumbling market, thereby resulting in strong profits for the fund.
AdvisorShares Ranger Equity Bear ETF has amassed $139.8 million in its asset base and is a bit pricey, charging 4.29% in annual fees. It trades in a volume of 285,000 shares a day, on average.
ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.
ProShares VIX Short-Term Futures ETF has amassed $315.1 million in AUM and charges 85 bps in fees per year. The fund trades in an average daily volume of around 11.7 million shares.
AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report) – Up 2.6%
AGFiQ US Market Neutral Anti-Beta Fund has the potential to generate positive returns regardless of the direction of the stock market as long as low-beta stocks outperform high-beta stocks. It invests primarily in long positions in low-beta U.S. equities and short positions in high-beta U.S. equities on a dollar-neutral basis, within sectors (read: 5 Sector ETFs That Could Flourish in November).
AGFiQ US Market Neutral Anti-Beta Fund has AUM of $361.1 million and an expense ratio of 2.53%. It trades in an average daily volume of 477,000 shares.
Simplify Managed Futures Strategy ETF seeks long-term capital appreciation by systematically investing in futures in an attempt to create an absolute return profile, that also has low correlation to equities, and can provide support in risk-off events.
Simplify Managed Futures Strategy ETF has accumulated $225.2 million in its asset base and trades in an average daily volume of 227,000 shares. It charges 75 bps in annual fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fed Raises Rate by Another 75 Bps: 5 ETFs That Gained
The Federal Reserve delivered another rate hike by three-quarters of a percentage point in its latest FOMC meeting concluded yesterday. This marks the fourth consecutive rate hike of 75 bps and pushes the benchmark rate to 3.75%-4%, its highest level since 2008. The decision led to dismal trading in U.S. equities.
Though terrible trading in the stock world pushed the ETF space into deep red on the day, a few ETFs still saw strength. These include AdvisorShares Dorsey Wright Short ETF (DWSH - Free Report) , AdvisorShares Ranger Equity Bear ETF (HDGE - Free Report) , ProShares VIX Short-Term Futures ETF (VIXY - Free Report) , AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report) and Simplify Managed Futures Strategy ETF (CTA - Free Report) .
The Fed’s sixth rate hike this year has made mortgages and other consumer and business loans increasingly expensive, increasing the risk of a recession. The central bank believes that higher rates will push up borrowing costs, cool the economy and bring down price inflation (read: Top-Ranked ETFs That Beat the Market in October).
The central bank also signaled that future increases in borrowing costs could be made in smaller steps to account for the “cumulative tightening of monetary policy” it has enacted so far.
Let’s dig into the detail of the above-mentioned ETFs:
AdvisorShares Dorsey Wright Short ETF (DWSH - Free Report) – Up 4.8%
AdvisorShares Dorsey Wright Short ETF is an actively managed fund that short sells U.S. large-cap securities with the highest relative weakness within an investment universe primarily comprising large-capitalization U.S.-traded equities. It holds 104 stocks in its basket, with consumer discretionary taking the largest share at 22.8%, while energy and healthcare round off the next two spots (read: Dow Jones Logs Best Month Since 1976: ETFs to Bet On).
AdvisorShares Dorsey Wright Short ETF trades in a good average daily volume of 153,000 shares and has accumulated $48.3 million in its asset base. It charges a higher annual fee of 2.77%.
AdvisorShares Ranger Equity Bear ETF (HDGE - Free Report) – Up 4.5%
AdvisorShares Ranger Equity Bear ETF is actively managed and seeks capital appreciation by taking short positions in a number of U.S.-listed companies with low earnings quality or aggressive accounting practices. The managers will look to identify earnings-driven events that could lead to price declines, such as downward earnings revisions or reduced forward guidance — the two factors that can spell trouble for a company. These securities with potentially weak fundamentals will underperform in a crumbling market, thereby resulting in strong profits for the fund.
AdvisorShares Ranger Equity Bear ETF has amassed $139.8 million in its asset base and is a bit pricey, charging 4.29% in annual fees. It trades in a volume of 285,000 shares a day, on average.
ProShares VIX Short-Term Futures ETF (VIXY - Free Report) – Up 2.7%
ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.
ProShares VIX Short-Term Futures ETF has amassed $315.1 million in AUM and charges 85 bps in fees per year. The fund trades in an average daily volume of around 11.7 million shares.
AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report) – Up 2.6%
AGFiQ US Market Neutral Anti-Beta Fund has the potential to generate positive returns regardless of the direction of the stock market as long as low-beta stocks outperform high-beta stocks. It invests primarily in long positions in low-beta U.S. equities and short positions in high-beta U.S. equities on a dollar-neutral basis, within sectors (read: 5 Sector ETFs That Could Flourish in November).
AGFiQ US Market Neutral Anti-Beta Fund has AUM of $361.1 million and an expense ratio of 2.53%. It trades in an average daily volume of 477,000 shares.
Simplify Managed Futures Strategy ETF (CTA - Free Report) – Up 1.8%
Simplify Managed Futures Strategy ETF seeks long-term capital appreciation by systematically investing in futures in an attempt to create an absolute return profile, that also has low correlation to equities, and can provide support in risk-off events.
Simplify Managed Futures Strategy ETF has accumulated $225.2 million in its asset base and trades in an average daily volume of 227,000 shares. It charges 75 bps in annual fees.