Wall Street was upbeat last week with the S&P 500, the Dow Jones and the Nasdaq gaining about 3.3%, 2.6% and 3.4%, respectively. On Aug 27, the Federal Reserve announced a new strategy to bring back the United States to full employment level and drive inflation back to healthier levels. This raised anticipation that rates will remain lower for a longer time and in turn charged up the equity market. Positive developments on the vaccine and treatment fronts were added positives.
Let’s take a look at the top-performing ETFs of last week.
Breakwave Dry Bulk Shipping ETF ( BDRY Quick Quote BDRY - Free Report) – Up 8.9%
The underlying Capesize 5TC Index, Panamax 4TC Index and Supramax 6TC Index measure rates for shipping the dry bulk freight. The dry bulk market may have witnessed an uptrend as a result of
higher demand around the world amid unlocking of economies. United States Natural Gas Fund LP ( UNG Quick Quote UNG - Free Report) ) – Up 7.8%
The government reported an injection into natural gas storage that matched the consensus but
fell below the year-ago and five-year average builds. This could be the cause of rally in natural gas prices. iPath Bloomberg Cocoa Subindex Total Return ETN ( NIB Quick Quote NIB - Free Report) – Up 6.9%
Soft commodities such as cocoa and coffee have rallied broadly lately. Carlos Mera Arzeno, senior commodity analyst at Rabobank quoted on CNBC, “
a weaker dollar (since most commodities are priced in dollars), a limited fall in demand and investors’ willingness to look to commodities as returns dry up elsewhere have all contributed to the recent price momentum.” KraneShares MSCI China Environment Index ETF ( KGRN Quick Quote KGRN - Free Report) – Up 6.8%
China’s target is to shell out $360 billion on renewable energy by 2020 and have renewable energy account for 35% of its electricity consumption by 2030, per Kraneshares. The country has raised its renewable energy generation target for this year to
28.2% of the total, with 10.8% expected from non-hydropower sources. This marks an increment of a modest 0.7 percentage points from 2019. Such diligent focus on clean energy generation has made KraneShares MSCI China Environment Index ETF ( KGRN Quick Quote KGRN - Free Report) a winner. Global X MSCI China Consumer Discretionary ETF ( CHIQ Quick Quote CHIQ - Free Report) – Up 6.7%
The underlying MSCI China Consumer Discretionary 10/50 Index follows a rules-based methodology that is designed to select constituents of the MSCI China Index. Retail Sales in China
increased 0.85% sequentially in July 2020, though it declined 1.1% year over year. Month-on-month gains in retail sales probably have provided a boost to retail sales. MicroSectors FANG+ ETN ( FNGS Quick Quote FNGS - Free Report) – Up 6.4%
The fund was a major beneficiary of a rally in the Nasdaq and the FAANG stocks. Notably, Facebook (FB) reached to new milestone last week. The social media giant surpassed $300 per share for the first time, climbing 8.2% in the Aug 26 trading session. This has translated into gains in FNGS.
U.S. Global Jets ETF ( JETS Quick Quote JETS - Free Report) – Up 6.3%
U.S. stocks have been steady, of late, with investors shifting focus to the reopening of economy and an improvement in virus cases. Recent data points show that the outbreak is gradually coming under control, even in the hardest-hit states. This has contributed to some gains in the airlines ETF.
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