Wall Street was muted last week. The S&P 500 was down 0.7%, the Dow Jones was up 0.1%, the Nasdaq Composite Index lost 1.6% and the small-cap index Russell 2000 was off about 1%. A jump in U.S. treasury yields can be held responsible for the underperformance. However, value stocks benefited for such rise in yields and the Dow Jones – the main laggard of the coronavirus crisis benefited a bit.
The yield on the benchmark 10-year Treasury note surged to a
one-year high of 1.36% last week and ended the week on 1.34%, aided by expectations that a vaccination program and fat fiscal stimulus under the Biden presidency would boost economic growth. Benchmark U.S. treasury yield gained about 14 bps last week.
Against this backdrop, below we highlight a few ETFs that put up solid gains last week.
Breakwave Dry Bulk Shipping ETF ( BDRY Quick Quote BDRY - Free Report) ) – Up 25.5%
This fund has been on a winning streak lately. The pickup in global economic growth has supported the dry bulk shipping rates. Gradually rising demand across all vessel categories have probably been aiding the area and the related fund (read:
Top & Flop Zones of 2020 and Their ETFs).
The underlying index of the fund Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC measures rates for shipping dry bulk freight. It provides exposure to the dry bulk shipping market through a portfolio of near-dated freight futures contracts on dry bulk indices.
Transformational Data Sharing Amplify ETF ( BLOK Quick Quote BLOK - Free Report) ) – Up 19%
This is yet another winning ETF of recent sessions. The success can be easily attributed to the outstanding bitcoin rally. Bitcoin tears the $53,000-mark to record high, advancing about 81% this year. Greater mainstream acceptance has been powering the rally.
Last week we received the news that the world’s largest asset manager which oversees about $9 trillion in assets,
Blackrock, has started investing in bitcoin. Last to last week, world’s largest electric-car maker Tesla announced that it has purchased $1.5 billion worth of bitcoin. Per another latest developments, Apple Pay users can now spend in bitcoin and other cryptocurrencies. Though bitcoin ETFs are not available to investors, they have blockchain ETFs at their disposal. Per a source, “the blockchain in Bitcoin literally acts a ledger; it keeps track of the balances for all users and updates them as money changes hands.” Hence, the blockchain ETF BLOK gained materially last week. Global-X Copper Miners ETF ( COPX Quick Quote COPX - Free Report) ) – Up 15.2%
Copper prices are
near a nine-year high. Improving global industrial production, especially in China, has been aiding the copper prices and the related mining stocks. Investors should note that China matters the most for copper as the country is the world’s biggest consumer of this industrial metal, accounting for roughly 40% of global copper demand (read: Industrial Metal ETFs Rallying Hard). Ipatha.B Tin Subindex TR ETN ( JJT Quick Quote JJT - Free Report) ) – Up 12.5%
Tin price is at its strongest level since 2012 on supply crunch. Covid-19 triggered a surge in demand and supply cratered. Demand for tin, used in soldering, has jumped amid booming sales of electronics in the work-from-home trend. This clubbed with disruptions in production and shipping routes has spiked tin prices,
per a Bloomberg article. ETFMG Travel Tech ETF ( AWAY Quick Quote AWAY - Free Report) ) – Up 9.8%
As the risk-rally initiated and the vaccination program gained momentum, value stocks and reopening-friendly stocks got a new lease of life. No wonder, travel stocks had a reason to outperform last week.
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