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Wall Street in Red Last Week: 5 ETFs Still Up

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Wall Street was again trapped in tumultuous trading, with the major indices turning red for three consecutive weeks. The S&P 500 dropped 2.8% last week, while the Dow Jones Industrial Average slumped 2.8% — its biggest drop in 18 months — after briefly skidding more than 1,000 points. The Nasdaq Composite Index had its worst day in nearly seven weeks, plunging 2.6%.

Worries about slowing corporate earnings and a hawkish Fed continue to weigh on investors’ sentiment. Despite the broad indices’ losses, a few ETFs survived last week’s turmoil. These include ProShares VIX Short-Term Futures ETF (VIXY - Free Report) , Advocate Rising Rate Hedge ETF (RRH - Free Report) , AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report) , U.S. Global Jets ETF (JETS - Free Report) and Cambria Value and Momentum ETF (VAMO - Free Report) .

Investors are betting on the steepest Fed tightening in almost three decades. The central bank is expected to follow a more aggressive path in raising rates to fight the 40-year high inflation after raising rates by 25 bps in the latest FOMC meeting. Speaking at a panel hosted by the International Monetary Fund on Apr 21, Jerome Powell signaled a half percentage point rate increase at its May meeting and indicated similar rate rises after that to lower inflation. With inflation running roughly three times the Fed's 2% target," it is appropriate to be moving a little more quickly," Powell said (read: ETF Areas to Consider as Fed Remains Super Hawkish).

The central bank also expects to start reducing the balance sheet at a rapid pace at its May meeting. Fed funds futures traders expect the Fed's benchmark rate to rise to 1.80% in July and 2.60% by February from the current 0.33%.

Let’s dig into the detail of the above-mentioned ETFs:

ProShares VIX Short-Term Futures ETF (VIXY - Free Report)

Volatility ETFs were the biggest gainers last week, with VIXY rising 10.5%. ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.

ProShares VIX Short-Term Futures ETF has amassed $23 billion in AUM and charges 85 bps in fees per year. The fund trades in an average daily volume of around 8.8 million shares.

Advocate Rising Rate Hedge ETF (RRH - Free Report)

This ETF has rallied 4% on bets of faster rate hikes by the central bank. Advocate Rising Rate Hedge ETF is a multi-asset ETF that seeks to generate capital appreciation during periods of rising long-term interest rates, specifically interest rates with maturities of five years or longer. It is an actively managed fund and seeks to achieve its investment objective primarily by investing in a combination of U.S. Treasury securities; forwards, futures or options on various currencies; long and short positions on the short and long-end of the Treasury or swap yield curve via futures, swaps, forwards and other over-the-counter derivatives; long and short positions on equity indexes and investment companies, including ETFs; and commodity futures and options.

Advocate Rising Rate Hedge ETF has accumulated $24.3 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 3,000 shares (read: Top-Performing ETF Areas of Last Week).   

AGFiQ US Market Neutral Anti-Beta Fund (BTAL - Free Report)

AGFiQ US Market Neutral Anti-Beta Fund has the potential to generate positive returns regardless of the direction of the stock market as long as low-beta stocks outperform high-beta stocks. It invests primarily in long positions in low-beta U.S. equities and short positions in high beta U.S. equities on a dollar-neutral basis, within sectors.

AGFiQ US Market Neutral Anti-Beta Fund has AUM of $108.8 million and an expense ratio of 2.53%. It trades in an average daily volume of 150,000 shares and gained 3% last week.

U.S. Global Jets ETF (JETS - Free Report)

Airline ETF surged 2.7% last week on optimism that consumers will continue flying this year despite higher fares. U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 51 securities and charges 60 bps in annual fees (read: Time for Reopening-Friendly Travel & Leisure ETFs?).

U.S. Global Jets ETF has gathered $3.5 billion in its asset base while seeing a heavy trading volume of nearly 9.7 million shares a day. JETS has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Cambria Value and Momentum ETF (VAMO - Free Report)

The market uncertainty has raised the appeal for value investing. VAMO gained 2.7% last week. It is an actively managed ETF providing exposure to a portfolio of companies that focus on all three factors — value, momentum, and tactical hedging — with the added benefit of lower volatility and protection from market downturns. Cambria Value and Momentum ETF results in a basket of 105 securities.

Cambria Value and Momentum ETF has accumulated $31.1 million in its asset base while trading in an average daily volume of 3,000 shares. Expense ratio comes in at 0.64%.

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