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Last week was mixed for Wall Street. The S&P 500 (up 1.57%), the Dow Jones (up 1.36%), the Nasdaq Composite (down 0.58%) and the small-cap Russell 2000 (down 2.89%) were all on a volatile ride due to tax hike fears and still-existing rising rate worries.
Rise in global COVID-19 cases also wreaked havoc on the investing world. The third wave of coronavirus has hit Europe hard with extension of lockdown measures in several countries. India has also been reporting rising virus cases despite vaccinations (read: 5 Safe ETFs to Play as Coronavirus Cases Rise Globally).
Further, the latest comments from Fed Chairman Jerome Powell also weighed on investors’ sentiment. The central bank said that it would gradually roll back its monthly bond purchases as the economy continues to improve. The Fed currently purchases $120 billion in bonds per month. Moreover, the rout in the tech space went on last week due to overvaluation concerns (read: Time to Buy These Undervalued Tech ETFs on the Dip?).
Against this backdrop, below we highlight a winning ETF areas of the last week.
ETF Areas in Focus
Homebuilders
The housing sector has been well-positioned despite rising home prices. The still-stay-at-home culture due to the pandemic has resulted in high demand for big homes, as buyers now want specific spaces for working, schooling and exercising at home. The post-pandemic world has led to a demographic shift with millennials being the largest emerging homebuyers. According to the source, about 79% of millennials are first-time buyers (read: Homebuilding ETFs Standing Tall Amid Rising Costs).
U.S. Home Construction iShares ETF (ITB - Free Report) – Up 5.4%
Benchmark U.S. treasury yields were on a volatile ride last week having started the week with 1.69% and ended the week with 1.67%. In the middle of the week, the yield slipped to 1.62% also. Such declining trend in the benchmark treasury yields boosted the fund rate-sensitive funds like real estates that outperform in a low-rate environment.
Fidelity Real Estate Investment ETF (FPRO - Free Report) – Up 3.7%
This sector is defensive in nature.It will likely fare better if there are any disruptions in the economic recovery due to global rise in virus cases or tax hikes in the United States (read: 5 Safe ETFs to Play as Coronavirus Cases Rise Globally).
By now, the fact of global chip crunch is known to all. Investors should note that the rising work-learn-and-shop-from-home trend amid the pandemic boosted demand for tech gadgets and caused chip shortages. This along with a recent fire at a factory of one of the world’s leading Japanese auto chip makers Renesas Electronics Corp. aggravated long-standing worries about the global crunch of automotive semiconductors. Higher demand and lower supply, in turn, boosted the prices of semiconductor stocks (read: Auto ETF Under Pressure on Renesas Chip-Plant Fire).
The livestock market has been rising this year. The latest rise in virus cases, probably is forcing consumers, to clear store shelves carrying meat and other foods once again. If there is a prolonged lockdown in global markets, beef prices will stay high.
iPath.B Livestock Subindex TR ETN – Up 3.4%
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Top-Performing ETF Areas of Last Week
Last week was mixed for Wall Street. The S&P 500 (up 1.57%), the Dow Jones (up 1.36%), the Nasdaq Composite (down 0.58%) and the small-cap Russell 2000 (down 2.89%) were all on a volatile ride due to tax hike fears and still-existing rising rate worries.
Rise in global COVID-19 cases also wreaked havoc on the investing world. The third wave of coronavirus has hit Europe hard with extension of lockdown measures in several countries. India has also been reporting rising virus cases despite vaccinations (read: 5 Safe ETFs to Play as Coronavirus Cases Rise Globally).
Further, the latest comments from Fed Chairman Jerome Powell also weighed on investors’ sentiment. The central bank said that it would gradually roll back its monthly bond purchases as the economy continues to improve. The Fed currently purchases $120 billion in bonds per month. Moreover, the rout in the tech space went on last week due to overvaluation concerns (read: Time to Buy These Undervalued Tech ETFs on the Dip?).
Against this backdrop, below we highlight a winning ETF areas of the last week.
ETF Areas in Focus
Homebuilders
The housing sector has been well-positioned despite rising home prices. The still-stay-at-home culture due to the pandemic has resulted in high demand for big homes, as buyers now want specific spaces for working, schooling and exercising at home. The post-pandemic world has led to a demographic shift with millennials being the largest emerging homebuyers. According to the source, about 79% of millennials are first-time buyers (read: Homebuilding ETFs Standing Tall Amid Rising Costs).
U.S. Home Construction iShares ETF (ITB - Free Report) – Up 5.4%
S&P Homebuilders SPDR (XHB - Free Report) – Up 4.1%
Real Estate
Benchmark U.S. treasury yields were on a volatile ride last week having started the week with 1.69% and ended the week with 1.67%. In the middle of the week, the yield slipped to 1.62% also. Such declining trend in the benchmark treasury yields boosted the fund rate-sensitive funds like real estates that outperform in a low-rate environment.
Fidelity Real Estate Investment ETF (FPRO - Free Report) – Up 3.7%
Cohen & Steers REIT iShares ETF (ICF - Free Report) – Up 3.5%
Consumer Staples
This sector is defensive in nature.It will likely fare better if there are any disruptions in the economic recovery due to global rise in virus cases or tax hikes in the United States (read: 5 Safe ETFs to Play as Coronavirus Cases Rise Globally).
Fidelity Consumer Staples MSCI ETF (FSTA - Free Report) – Up 3.4%
Semiconductors
By now, the fact of global chip crunch is known to all. Investors should note that the rising work-learn-and-shop-from-home trend amid the pandemic boosted demand for tech gadgets and caused chip shortages. This along with a recent fire at a factory of one of the world’s leading Japanese auto chip makers Renesas Electronics Corp. aggravated long-standing worries about the global crunch of automotive semiconductors. Higher demand and lower supply, in turn, boosted the prices of semiconductor stocks (read: Auto ETF Under Pressure on Renesas Chip-Plant Fire).
Semiconductor Vaneck ETF (SMH - Free Report) – Up 3.4%
Livestock
The livestock market has been rising this year. The latest rise in virus cases, probably is forcing consumers, to clear store shelves carrying meat and other foods once again. If there is a prolonged lockdown in global markets, beef prices will stay high.
iPath.B Livestock Subindex TR ETN – Up 3.4%
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>