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Wall Street saw a wild swing last week and technology stocks were beaten down badly on growth concerns and Fed’s speedy taper talks. The Nasdaq Composite Index underperformed, shedding 2.6% last week while the S&P 500 and Dow Jones industrial Average lost 1.2% and 0.9%, respectively.
Despite the broad indices’ losses, a few ETFs survived last week’s turmoil. These include iShares U.S. Home Construction ETF (ITB - Free Report) , First Trust Nasdaq Semiconductor ETF (FTXL - Free Report) , Acquirers Fund (ZIG - Free Report) , Invesco Russell 1000 Low Beta Equal Weight ETF and Utilities Select Sector SPDR (XLU - Free Report) .
The spread of the new COVID-19 variant, Omicron, has sparked fears of restriction measures and another wave of lockdown. This will dampen economic growth, which is recovering from the pandemic lows. Meanwhile, Federal Reserve Chair Jerome Powell signaled that the central bank is planning to accelerate the withdrawal of its bond-buying program at its December meeting to combat a surge in inflation (read: Low-Beta ETFs to Fend Off Market Volatility).
Additionally, a disappointing November jobs report added to the worries. The U.S. added just 210,000 jobs last month compared to 573,000 jobs predicted by economists polled by Dow Jones. This represents the smallest number of jobs added to the U.S. economy since December 2020, when the economy actually shed jobs amid a surge in COVID cases. The COVID-19 Omicron variant, rising inflation and the ongoing supply chain crisis took a toll on the job numbers and will likely slow down the economic recovery.
iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With AUM of $2.9 billion, it holds a basket of 46 stocks with a heavy concentration on the top two firms.
iShares U.S. Home Construction ETF charges 41 bps in annual fees and trades in a heavy volume of around 2.7 million shares a day on average. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: S&P 500 Notches Best Day in Seven Weeks: 5 ETF Winners).
First Trust Nasdaq Semiconductor ETF offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL holds 30 stocks in its basket with concentration on the top firms.
First Trust Nasdaq Semiconductor ETF has accumulated $100.4 million in AUM. The average trading volume is light at around 16,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #1.
Acquirers Fund is a long/short U.S. equity ETF. It tracks The Acquirer's Index, which comprises long and short stock portfolios from the U.S. large and mid-cap universe. The long portfolio is rebalanced quarterly to hold those stocks at the deepest discount to Acquirers' assessment of value, and the strongest fundamentals. The short portfolio is rebalanced quarterly to weight those stocks at the greatest premium to Acquirers' assessment of value, with the weakest fundamentals.
Acquirers Fund has amassed $44.2 million in its asset base and charges higher fees of 1.85%. The product trades in an average daily volume of 10,000 shares.
Invesco Russell 1000 Low Beta Equal Weight ETF
Invesco Russell 1000 Low Beta Equal Weight ETF seeks to track the performance of the Russell 1000 Low Beta Equal Weight Index, which measures the performance of stocks in the Russell 1000 Index exhibiting low-beta characteristics. The product holds 386 stocks in its basket with wide exposure across components as none makes up for more than 0.6% of assets. Invesco Russell 1000 Low Beta Equal Weight ETF has key holdings in healthcare, information technology, industrials and financials receiving a double-digit allocation each (read: Low-Beta ETFs to Fend Off Market Volatility).
Invesco Russell 1000 Low Beta Equal Weight ETF has accumulated $10.1 million and charges 35 bps in annual fees. Volume is light, exchanging under 1,000 shares per day on average. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Utilities Select Sector SPDR seeks to provide exposure to companies from the electric utility, water utility, multi-utility, independent power and renewable electricity producers, and gas utility industries. It follows the Utilities Select Sector Index, holding 28 stocks in its basket with heavy concentration on the top firm. Electric utilities takes the top spot in terms of sectors at 64.7%, closely followed by multi utilities (29%).
With AUM of $12.1 billion, Utilities Select Sector SPDR charges 12 bps in annual fees and sees a heavy volume of around 11.5 million shares on average. It has a Zacks ETF Rank #3 with a Medium risk outlook.
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5 ETFs That Survived the Last Week's Rout
Wall Street saw a wild swing last week and technology stocks were beaten down badly on growth concerns and Fed’s speedy taper talks. The Nasdaq Composite Index underperformed, shedding 2.6% last week while the S&P 500 and Dow Jones industrial Average lost 1.2% and 0.9%, respectively.
Despite the broad indices’ losses, a few ETFs survived last week’s turmoil. These include iShares U.S. Home Construction ETF (ITB - Free Report) , First Trust Nasdaq Semiconductor ETF (FTXL - Free Report) , Acquirers Fund (ZIG - Free Report) , Invesco Russell 1000 Low Beta Equal Weight ETF and Utilities Select Sector SPDR (XLU - Free Report) .
The spread of the new COVID-19 variant, Omicron, has sparked fears of restriction measures and another wave of lockdown. This will dampen economic growth, which is recovering from the pandemic lows. Meanwhile, Federal Reserve Chair Jerome Powell signaled that the central bank is planning to accelerate the withdrawal of its bond-buying program at its December meeting to combat a surge in inflation (read: Low-Beta ETFs to Fend Off Market Volatility).
Additionally, a disappointing November jobs report added to the worries. The U.S. added just 210,000 jobs last month compared to 573,000 jobs predicted by economists polled by Dow Jones. This represents the smallest number of jobs added to the U.S. economy since December 2020, when the economy actually shed jobs amid a surge in COVID cases. The COVID-19 Omicron variant, rising inflation and the ongoing supply chain crisis took a toll on the job numbers and will likely slow down the economic recovery.
We have highlighted the ETFs in detail below:
iShares U.S. Home Construction ETF (ITB - Free Report)
iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With AUM of $2.9 billion, it holds a basket of 46 stocks with a heavy concentration on the top two firms.
iShares U.S. Home Construction ETF charges 41 bps in annual fees and trades in a heavy volume of around 2.7 million shares a day on average. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: S&P 500 Notches Best Day in Seven Weeks: 5 ETF Winners).
First Trust Nasdaq Semiconductor ETF (FTXL - Free Report)
First Trust Nasdaq Semiconductor ETF offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL holds 30 stocks in its basket with concentration on the top firms.
First Trust Nasdaq Semiconductor ETF has accumulated $100.4 million in AUM. The average trading volume is light at around 16,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #1.
Acquirers Fund (ZIG - Free Report)
Acquirers Fund is a long/short U.S. equity ETF. It tracks The Acquirer's Index, which comprises long and short stock portfolios from the U.S. large and mid-cap universe. The long portfolio is rebalanced quarterly to hold those stocks at the deepest discount to Acquirers' assessment of value, and the strongest fundamentals. The short portfolio is rebalanced quarterly to weight those stocks at the greatest premium to Acquirers' assessment of value, with the weakest fundamentals.
Acquirers Fund has amassed $44.2 million in its asset base and charges higher fees of 1.85%. The product trades in an average daily volume of 10,000 shares.
Invesco Russell 1000 Low Beta Equal Weight ETF
Invesco Russell 1000 Low Beta Equal Weight ETF seeks to track the performance of the Russell 1000 Low Beta Equal Weight Index, which measures the performance of stocks in the Russell 1000 Index exhibiting low-beta characteristics. The product holds 386 stocks in its basket with wide exposure across components as none makes up for more than 0.6% of assets. Invesco Russell 1000 Low Beta Equal Weight ETF has key holdings in healthcare, information technology, industrials and financials receiving a double-digit allocation each (read: Low-Beta ETFs to Fend Off Market Volatility).
Invesco Russell 1000 Low Beta Equal Weight ETF has accumulated $10.1 million and charges 35 bps in annual fees. Volume is light, exchanging under 1,000 shares per day on average. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Utilities Select Sector SPDR (XLU - Free Report)
Utilities Select Sector SPDR seeks to provide exposure to companies from the electric utility, water utility, multi-utility, independent power and renewable electricity producers, and gas utility industries. It follows the Utilities Select Sector Index, holding 28 stocks in its basket with heavy concentration on the top firm. Electric utilities takes the top spot in terms of sectors at 64.7%, closely followed by multi utilities (29%).
With AUM of $12.1 billion, Utilities Select Sector SPDR charges 12 bps in annual fees and sees a heavy volume of around 11.5 million shares on average. It has a Zacks ETF Rank #3 with a Medium risk outlook.