Wall Street put up a moderate show last week with the S&P 500 (up 1.6%), the Dow Jones (up 1.1%), the Nasdaq Composite (up 2.4%) and the Russell 2000 (up 1.7%) all yielding positive results despite a few headwinds.
Last week was all about the FAANGs as a trio of trillion-dollar giants —
Meta Platforms , Alphabet GOOGL) and Amazon ( AMZN Quick Quote AMZN - Free Report) — came up with earnings results. Strong reports from Alphabet and Amazon helped tech recover from the recent sluggishness, while a disappointing release from Meta led to one of the worst trading days for the Nasdaq since March 2020.
On a positive note, the jobs report came in super upbeat. The U.S. economy added 467,000 jobs in January 2021, beating market expectations of a rise of 150,000 thanks to easing business restrictions amid the reopening of economies and vaccine distribution from multiple makers. January figures came as a huge surprise as the Omicron coronavirus variant weighed on the jobs market.
The crude oil rally is another key event in the market. Rising geopolitical uncertainty in the Middle East and Europe may cause supply disruptions. The demand, however, is likely to return to the pre-pandemic levels in the coming months. Crude inventories and spare capacity remain low and increasing supply is difficult at the current level.
Against this backdrop, below we highlight a few winning leveraged ETF areas of last week.
Kraneshares European Carbon Allowance ETF ( KEUA Quick Quote KEUA - Free Report) – Up 12%
The IHS Markit Carbon EUA Index tracks the most traded EUA futures contracts. The governments around the world are focused on moving toward the goal of net-zero emissions by 2050 set by the 2015 Paris agreement. Some of the largest companies including
Microsoft (MSFT) and Apple (AAPL) have also voluntarily committed to a net zero emissions target.
In addition to investing in renewable energies and carbon capture technologies, some companies use carbon offsets. Another way for companies to manage their carbon footprint is to buy and sell emission allowances. In the cap-and-trade system, a government sets a limit on overall emissions, which is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps (read:
Why Carbon Credit ETFs Soared in 2021). Bitwise Crypto Industry Innovators ETF ( BITQ Quick Quote BITQ - Free Report) – Up 11.7%
The underlying Bitwise Crypto Innovators 30 Index measures the performance of companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele. Global crypto market has been downbeat in recent trading. The last week led some investors to indulge into bargain hunting.
Alpha Architect ETF Trust Viridi Cleaner Energy ( RIGZ Quick Quote RIGZ - Free Report) – Up 11.6%
The Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF is an actively managed exchange-traded fund focused on the cryptocurrency mining industry. This fund also emerged a beneficiary of the last week’s crypto rally.
Vaneck Digital Transformation ETF ( DAPP Quick Quote DAPP - Free Report) – Up 11.3%
The underlying MVIS Global Digital Assets Equity Index is a rule-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. This is yet another winner in the crypto space.
Advisorshares Poseidon Dynamic Cannabis ETF ( PSDN Quick Quote PSDN - Free Report) – Up 10.8%
This ETF is active and does not track a benchmark. The AdvisorShares Poseidon Dynamic Cannabis ETF seeks long-term capital appreciation. PSDN invests in cannabis with the ability to use leverage to boost exposure in specific names in an effort to add alpha.