Big three U.S. indexes including the S&P 500 (up 1.33%), the Dow Jones (0.40%), the Nasdaq Composite (up 2.70%) and the Russell 2000 (up 4.2%) made last week a winning one for investors. Crypto-related investments and clean energy ETFs hogged attention last week.
The month was great from the bitcoin context as the investing world welcome the first U.S.-listed bitcoin futures ETF – ProShares Bitcoin Strategy ETF (BITO). The ETF started trading on Oct 19, making the world’s biggest cryptocurrency available in a tax-efficient wrapper to investors via any brokerage account (read:
What You Should Know About Bitcoin ETFs).
Plus, Valkyrie Investments’s bitcoin futures exchange-traded fund also won the green signal of the U.S. Securities and Exchange Commission. The fund (BTF) started trading from Oct 22.
VanEck will join ProShares in launching a bitcoin futures exchange-traded fund (XBTF).
No wonder, crypto-related companies which focus on the blockchain technology were in the positive zone last week. Another winning area was clean energy thanks to the 26th Conference of Parties (COP26) at Glasgow. This summit aims to lower emissions of greenhouse gas and tackle global warming.
Added to this, there was downbeat U.S. GDP growth report. The American economy grew an annualized 2% in Q3 of 2021,
falling shy of market forecasts of 2.7% and slowing sharply from 6.7% in Q2. It is the weakest growth of pandemic recovery as government support is fading and a surge in Delta-variant related COVID-19 cases and global supply chain issues hurt consumption and production in the period (read: 5 ETFs to Win Despite Downbeat U.S. GDP Growth).
Against this backdrop, below we highlight a few ETF areas that gained handsomely in the past week.
Simplify Volt Robocar Disruption and Tech ETF
VCAR – Up 23.6%
Electric vehicle maker Tesla became a one-trillion company and jumped 8.7% last week. The rally came after the news of the biggest-ever order from Hertz. The rally was also driven by the news that the company's Model 3 become the first electric vehicle to top monthly sales of new cars in Europe, beating stalwarts like the Renault Clio and Volkswagen Golf. Tesla sold 24,591 units of Model 3 in Europe in September, representing year-over-year growth of 58%. The fund VCAR invests about 20% of its weight in Tesla. No wonder, the fund surged massively last week (read:
6 ETFs to Ride on Tesla's Trillion-Dollar Market Cap). Hydrogen
Hydrogen is often touted as the fuel of the future as the world transitions away from fossil fuels. Even big oil companies are investing millions in green hydrogen projects, but the technology is not cost effective currently (read:
Market Outlook & Thematic ETF Ideas for Q4).
With COP-26 taking place in October and delegates from about 200 countries to be announcing how they will reduce emissions by 2030, alternative energy had every reason to rally.
Global X Hydrogen ETF (
HYDR Quick Quote HYDR - Free Report) – Up 14.1%
ETF Series Solutions Defiance Next Gen H2 ETF (HDRO) – Up 11.6%
Direxion Hydrogen ETF (HJEN) – Up 11.0%
This is yet another beneficiary of COP-26. Investors took positions in solar energy ahead of the outcome of the meeting. Notably, India and the United Kingdom will launch a project that aims to create a solar grid connecting countries in different parts of the world at the upcoming U.N. climate talks in Glasgow, Scotland.
Solar Invesco ETF (
TAN Quick Quote TAN - Free Report) – Up 12.1%
Proshares S&P Kensho Cleantech ETF (CTEX) – Up 11.4%
Global X Solar ETF (RAYS) – Up 10.6%
Wilderhill Clean Energy Invesco ETF (PBW) – Up 10.5%
Alps Clean Energy ETF (ACES) – Up 10.4%
Everything in the world is getting digitized. Most of the sectors including energy, water utilities and real estate are becoming digitally transformed. Bitcoin hit an all-time high of $66,000 in October as it received the mainstream acceptance, which helped the blockchain funds.
Global X Blockchain ETF (
BKCH Quick Quote BKCH - Free Report) – Up 10.3%
Bitwise Crypto Industry Innovators ETF (BITQ) – Up 10.1%
Vaneck Digital Transformation ETF (DAPP) – Up 8.7%