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6 Best ETF Areas of Last Week Amid Russia-Ukraine Tensions
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Despite being subdued initially U.S. stocks registered a strong rally at the end of the last week despite Russia's invasion of Ukraine. Bargain-hunting for beaten-down stocks amid geopolitical tensions led to risk-on sentiments. Moreover, as per some market analysts, western sanctions against Russia have not been as harsh as initially feared. Plus, there have been reports that Russia is open to negotiating with Ukraine, even as Russian troops are approaching the capital of Ukraine, Kyiv.
The Dow Jones dropped 0.06% past week against an 0.82% uptick in the S&P 500 Index and a 1.1% rise in the Nasdaq Composite. Since the Dow Jones’ underperformance was more pronounced amid the Russia-Ukraine tensions, relief rally offered the beleaguered index the maximum gains. The Dow Jones logged the best single-day gain since late 2020 on Feb 25.
Meanwhile, oil breached $100 for the first time since 2014. All these factors influenced last week’s market movement. Below we highlight a few winning ETF areas.
Uranium
Uranium stocks were gainers last week on the Russian invasion of Ukraine. Ukraine is a major producer of uranium. As the conflict worsens, supply chain is likely to be hit hard.
Northshore Global Uranium Mining ETF (URNM) – Up 8.21%
Clean energy stocks have registered an upswing due to the jump in fossil fuels. The sheer jump in the conventional energy sector made the prospects of the alternative energy sector lucrative.
Global Wind Energy First Trust (FAN - Free Report) – Up 5.3%
Global Clean Energy iShares ETF (ICLN) – Up 5.2%
Wheat
Wheat prices too rose due to Russia’s incursion into Ukraine. Both areas are rich in wheat production and account for about 29% of the global wheat export market. The latest crisis triggered worries about the supply chain woes.
Teucrium Wheat (WEAT) – Up 5.5%
Cyber Security
With the Russian incursion into Ukraine and the resultant Western sanctions against Russia hitting headlines, chances of heavy cybercrime on the global level have come to the fore. Several Ukrainian government websites were offline on Feb 23, 2022 as a result of a mass distributed denial of service (DDoS) attack, a Ukrainian official said, as quoted on a CNBC article.
Global X Cybersecurity ETF (BUG - Free Report) – Up 4.7%
Nasdaq Cybersecurity ETF First Trust (CIB - Free Report) R) – Up 4.1%
Brent Crude
Russia is energy-rich. And Europe is highly dependent on Russia for energy, importing about 40% of its energy requirement. Russia is the provider of about 35% of Europe’s gas. If Russia tensions increase, gas and Brent crude prices will go up further. Oil breached $100 for the first time since 2014.
Apart from uranium, Ukraine produces titanium, iron ore, steel, and ammonia too. And the country’s steel accounts for around 10% of Europe’s imports. Most of these metals are used in disruptive technologies such as lithium batteries, solar panels, wind turbines, fuel cells, robotics, and 3D printers.
In any case, the solar industry itself has been thriving with an upward potential. Titanium alloys are widely used in military applications. This explains why disruptive metal companies have been surging higher.
Global X Disruptive Materials ETF (DMAT - Free Report) – Up 4.3%
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6 Best ETF Areas of Last Week Amid Russia-Ukraine Tensions
Despite being subdued initially U.S. stocks registered a strong rally at the end of the last week despite Russia's invasion of Ukraine. Bargain-hunting for beaten-down stocks amid geopolitical tensions led to risk-on sentiments. Moreover, as per some market analysts, western sanctions against Russia have not been as harsh as initially feared. Plus, there have been reports that Russia is open to negotiating with Ukraine, even as Russian troops are approaching the capital of Ukraine, Kyiv.
The Dow Jones dropped 0.06% past week against an 0.82% uptick in the S&P 500 Index and a 1.1% rise in the Nasdaq Composite. Since the Dow Jones’ underperformance was more pronounced amid the Russia-Ukraine tensions, relief rally offered the beleaguered index the maximum gains. The Dow Jones logged the best single-day gain since late 2020 on Feb 25.
Meanwhile, oil breached $100 for the first time since 2014. All these factors influenced last week’s market movement. Below we highlight a few winning ETF areas.
Uranium
Uranium stocks were gainers last week on the Russian invasion of Ukraine. Ukraine is a major producer of uranium. As the conflict worsens, supply chain is likely to be hit hard.
Northshore Global Uranium Mining ETF (URNM) – Up 8.21%
Global X Uranium ETF( (URA - Free Report) – Up 7.2%
Clean Energy
Clean energy stocks have registered an upswing due to the jump in fossil fuels. The sheer jump in the conventional energy sector made the prospects of the alternative energy sector lucrative.
Global X Solar ETF (RAYS - Free Report) – Up 6.1%
Global Wind Energy First Trust (FAN - Free Report) – Up 5.3%
Global Clean Energy iShares ETF (ICLN) – Up 5.2%
Wheat
Wheat prices too rose due to Russia’s incursion into Ukraine. Both areas are rich in wheat production and account for about 29% of the global wheat export market. The latest crisis triggered worries about the supply chain woes.
Teucrium Wheat (WEAT) – Up 5.5%
Cyber Security
With the Russian incursion into Ukraine and the resultant Western sanctions against Russia hitting headlines, chances of heavy cybercrime on the global level have come to the fore. Several Ukrainian government websites were offline on Feb 23, 2022 as a result of a mass distributed denial of service (DDoS) attack, a Ukrainian official said, as quoted on a CNBC article.
Global X Cybersecurity ETF (BUG - Free Report) – Up 4.7%
Nasdaq Cybersecurity ETF First Trust (CIB - Free Report) R) – Up 4.1%
Brent Crude
Russia is energy-rich. And Europe is highly dependent on Russia for energy, importing about 40% of its energy requirement. Russia is the provider of about 35% of Europe’s gas. If Russia tensions increase, gas and Brent crude prices will go up further. Oil breached $100 for the first time since 2014.
US Brent Oil (BNO - Free Report) – Up 4.6%
Disruptive Metals
Apart from uranium, Ukraine produces titanium, iron ore, steel, and ammonia too. And the country’s steel accounts for around 10% of Europe’s imports. Most of these metals are used in disruptive technologies such as lithium batteries, solar panels, wind turbines, fuel cells, robotics, and 3D printers.
In any case, the solar industry itself has been thriving with an upward potential. Titanium alloys are widely used in military applications. This explains why disruptive metal companies have been surging higher.
Global X Disruptive Materials ETF (DMAT - Free Report) – Up 4.3%