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5 ETF Winners On Stocks' Worst Day Since 2020

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Stocks experienced the worst day since 2020 on Sep 13 as hot CPI data stoked rising rate worries and caused a crash in the market, as quoted on Yahoo Finance. All three key U.S. stock indexes recorded their worst day since June 2020. The annual inflation rate in the United States eased for two months in a row to 8.3% in August of 2022, the lowest in four months, from 8.5% in July but above market forecasts of 8.1%.

Meanwhile, core CPI, which eliminates volatile energy and food prices, increased 6.3% on a year, the most since March, and up markedly from 5.9% hit in both June and July. Core CPI rose 0.3% over the prior month. Much of the continued rise in core inflation originated from the cost of shelter, which increased 0.7% sequentially, the maximum since January 1991. Shelter costs makes up a third of CPI.     

The energy index rose 23.8%, below 32.9% in July. Still, inflation data came in higher than forecast. Consumer prices were up 0.1% sequentially, following a flat reading in July and compared to forecasts of a 0.1% decline.

Hot inflation data kind of confirmed a super-hawkish Fed. Following Tuesday's inflation report, data from the CME Group revealed that there is a 66% chance of a 0.75% rate hike next week and an 34% probability of a 1% rate hike (at the time of writing). Last week, this data showed a 75%-25% chances between a 75-basis-point and a 50-basis-point rate hike.

One-year U.S. treasury yield was 3.92% on Sep 13, 2022 while 10-year U.S. treasury yield was 3.42%. Due to rising rate concerns and recessionary fears, markets slumped. The S&P 500 was down 4.32%, the Dow Jones lost 3.94%, the Nasdaq retreated as much as 5.2% and the Russell 2000 slumped 3.91% on Sep 13.

Against this backdrop, below we highlight a few alternative ETFs that gained handsomely on Sep 13.

ETFs in Focus

AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL - Free Report) – Up 3.06%

The AGFiQ US Market Neutral Anti-Beta ETF seeks performance results that correspond to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Thematic Market Neutral Anti-Beta Index. The index is a long / short market neutral index that is dollar-neutral. The expense ratio of the fund is 2.53%.

KFA Mount Lucas Index Strategy ETF (KMLM - Free Report) – Up 2.47%

The KFA Mount Lucas Index Strategy ETF seeks to provide a total return that, before fees and expenses, exceeds that of the KFA MLM Index over a complete market cycle. The fund charges 92 bps in fees and yields 5.04%.

Cambria Tail Risk ETF (TAIL - Free Report) – Up 2.4%

The Cambria Tail Risk ETF seeks to mitigate significant downside market risk. The Fund intends to invest in a portfolio of out of the money put options purchased on the U.S. stock market. The fund charges 59 bps in fees.

Global X Interest Rate Hedge ETF – Up 2.36%

The Global X Interest Rate Hedge ETF is an actively-managed ETF designed to benefit when long-term interest rates increase. The fund charges 45 bps in fees.

Simplify Managed Futures Strategy (CTA - Free Report) – Up 2.33%

The Simplify Managed Futures Strategy ETF seeks long term capital appreciation by systematically investing in futures in an attempt to create an absolute return profile, that also has low correlation to equities, and can provide support in risk-off events. The fund charges 75 bps in fees.

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