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Wall Street delivered lackluster performances last week, mainly due to rising rate worries. The S&P 500 Index was off 2.4%, the Dow Jones was down 1.6%, the Nasdaq lost 3.2% and the Russell 2000 retreated 2.3% last week (read: Sector ETFs to Win/Lose Amid Surging Treasury Yields).
U.S. Treasury yields have been surging lately, driven by expectations that the Fed will keep interest rates higher for longer to fight inflation. The U.S. jobs market has been hot despite higher rates while U.S. consumers have been resilient despite high inflation. Retail sales data for the month of September came in at upbeat. This may lead the Fed to enact one more rate hike in November this year.
The benchmark U.S. treasury yield started the week at 4.71%, hit a weekly high of 4.98% on Oct 19 and stood at 4.93% as of Oct 20, 2023. Though the Israel-Gaza war boosted oil and gold prices, U.S. treasuries failed to live up to their safe-haven status. The gold bullion ETF SPDR Gold Shares (GLD - Free Report) advanced 3.2% last week, while Brent crude oil ETF BNO was up by 2.5%.
Against this backdrop, below we highlight a few top-performing ETFs of last week.
ETFs in Focus
Simplify Tail Risk Strategy ETF ) – Up 35%
This ETF is active and does not track a benchmark. The Simplify Tail Risk Strategy ETF seeks to provide investors with a standalone solution for hedging diversified portfolios against severe equity market selloffs. The fund charges 84 bps in fees and yields 14.66% annually.
The AXS TSLA Bear Daily ETF seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of the common shares of Tesla, Inc. Tesla Motors reported weaker-than-expected Q3 results, missing estimates on both fronts (read: Tesla Posts Weak Q3 Earnings: ETFs in Focus).
GraniteShares 1.5x Short NVDA Daily ETF (NVD - Free Report) ) – Up 16.2%
The GraniteShares 1.5x Short NVDA Daily ETF seeks daily investment results, before fees and expenses, of -1.5 times the daily percentage change of the common stock of NVIDIA Corp. The stock slumped 8.2% last week. In August last year, there was a ban on Nvidia’s chip export to China. Last week, the Biden administration again announced a slew of measures to limit Beijing’s military ambitions, by imposing further restriction on Nvidia’s AI chip shipments to China.
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. The fund surged amid rising rate worries. The fund charges 50 bps in fees and yields 0.94% annually.
The ProShares Bitcoin Strategy ETF is bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way. Bitcoin prices advanced 4.4% last week, thus benefiting the fund.
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5 Best-Performing ETFs of Last Week
Wall Street delivered lackluster performances last week, mainly due to rising rate worries. The S&P 500 Index was off 2.4%, the Dow Jones was down 1.6%, the Nasdaq lost 3.2% and the Russell 2000 retreated 2.3% last week (read: Sector ETFs to Win/Lose Amid Surging Treasury Yields).
U.S. Treasury yields have been surging lately, driven by expectations that the Fed will keep interest rates higher for longer to fight inflation. The U.S. jobs market has been hot despite higher rates while U.S. consumers have been resilient despite high inflation. Retail sales data for the month of September came in at upbeat. This may lead the Fed to enact one more rate hike in November this year.
The benchmark U.S. treasury yield started the week at 4.71%, hit a weekly high of 4.98% on Oct 19 and stood at 4.93% as of Oct 20, 2023. Though the Israel-Gaza war boosted oil and gold prices, U.S. treasuries failed to live up to their safe-haven status. The gold bullion ETF SPDR Gold Shares (GLD - Free Report) advanced 3.2% last week, while Brent crude oil ETF BNO was up by 2.5%.
Against this backdrop, below we highlight a few top-performing ETFs of last week.
ETFs in Focus
Simplify Tail Risk Strategy ETF ) – Up 35%
This ETF is active and does not track a benchmark. The Simplify Tail Risk Strategy ETF seeks to provide investors with a standalone solution for hedging diversified portfolios against severe equity market selloffs. The fund charges 84 bps in fees and yields 14.66% annually.
AXS TSLA Bear Daily ETF (TSLQ - Free Report) ) – Up 17.3%
The AXS TSLA Bear Daily ETF seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of the common shares of Tesla, Inc. Tesla Motors reported weaker-than-expected Q3 results, missing estimates on both fronts (read: Tesla Posts Weak Q3 Earnings: ETFs in Focus).
GraniteShares 1.5x Short NVDA Daily ETF (NVD - Free Report) ) – Up 16.2%
The GraniteShares 1.5x Short NVDA Daily ETF seeks daily investment results, before fees and expenses, of -1.5 times the daily percentage change of the common stock of NVIDIA Corp. The stock slumped 8.2% last week. In August last year, there was a ban on Nvidia’s chip export to China. Last week, the Biden administration again announced a slew of measures to limit Beijing’s military ambitions, by imposing further restriction on Nvidia’s AI chip shipments to China.
Simplify Interest Rate Hedge ETF (PFIX - Free Report) ) – Up 11.9%
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. The fund surged amid rising rate worries. The fund charges 50 bps in fees and yields 0.94% annually.
ProShares Bitcoin Strategy ETF (BITO - Free Report) ) – Up 10.8%
The ProShares Bitcoin Strategy ETF is bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way. Bitcoin prices advanced 4.4% last week, thus benefiting the fund.