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Wall Street Recoups on Fading Trade Fear: 6 ETF Winners

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Last week was the worst for Wall Street in more than two years thanks to fears of a trade war. This was because President Donald Trump signed an executive memorandum to levy tariffs worth about $60 billion against China for intellectual property theft last week.

In retaliation, China has proposed a list of 128 U.S. products worth $3 billion as potential retaliation targets. As a result, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite Index slid 5.7%, 5.9% and 6.5%, respectively, last week (read: Wall Street Sees Worst Week in 2 Years: ETF Winners & Losers).

However, the broader market recovered on news that China and the United States have agreed to have a word so that the latter can have wider access to the markets of the other. The Trump administration reportedly asked China to lower tariffs on U.S. automobiles, buy more U.S. semiconductors, and provide more American access to China’s financial sector.

Dow, S&P 500 Records Most Single-Day Gains Since 2015

With signs of retreating trade tension, U.S. stocks registered their largest single-day percentage gains since August 2015. Major indexes recovered almost half of their losses from last week. The Dow Jones Based fund SPDR Dow Jones Industrial Average ETF (DIA - Free Report) and the S&P 500-based fund SPDR S&P 500 ETF (SPY - Free Report) gained about 2.8%,respectively, and the Nasdaq-based fundPowerShares QQQ ETF (QQQ - Free Report) advanced more than 3.7% on Mar 26. Technology and financials drove the rally.

Top ETF Winners

Below we highlight a few ETFs that led the rally to start this week. Winners were global with stocks of two concerned countries deserving maximum attention.

Cambria Emerging Shareholder Yield ETF (EYLD - Free Report) – Up 5.12%

The underlying index includes stocks in emerging market countries with high cash distribution characteristics. The fund yields 2.69% annually (read: Shareholder Yield: A Better Approach for Dividend Investors?).   

Innovator IBD 50 Fund ETF (FFTY - Free Report) – Up 4.53%

The underlying IBD 50 Index is a weekly, rules-based, computer-generated stock index that looks to identify the current top 50 growth stocks. The fund targets companies that are generating solid profit growth, big sales increases, wide profit margins and a high return on equity.

Solar ETF Guggenheim (TAN - Free Report) – Up 4.18%

The underlying MAC Global Solar Energy Index tracks companies in the business segments of the solar power industry (read: Trump Tariffs Put These Sector ETFs & Stocks in Focus).

iShares PHLX Semiconductor ETF (SOXX - Free Report) – Up 4.17%

The fund looks to track an index composed of U.S. equities in the semiconductor sector (read: 8 Must-Watch ETFs if Trump Slams Tariffs on China by Friday).   

iShares Dow Jones U.S. Technology (IYW - Free Report) – Up 4.1%

The underlying Dow Jones U.S. Technology Index includes companies in the following sectors: software and computer services and technology hardware and equipment. The index is capitalization-weighted and includes only companies in the technology industry of the Dow Jones U.S. Total Market Index (read: Are FB & EU Casting Cloud Over Silicon Valley and These ETFs?).

China Index MSCI iShares (MCHI - Free Report) – Up 4.02%

The underlying MSCI China Index is designed to measure the performance of equity securities in the top 85% in market capitalization of Chinese equity markets, as represented by the H-Shares and B-Shares markets.

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