Last week was eventful for the global market as it kicked off with Cyber Monday. After record online sales on Black Friday, Cyber Monday has probably become the heaviest online spending day ever. This is especially true as shoppers spent a record $11.3 billion on online shopping, up 5.8% year over year, according to Adobe (read:
5 ETFs to Splurge on Cyber Monday Record Sales).
Meanwhile, last week, the Federal Reserve chief predicted a smaller interest rate hike in December. “The time for moderating the pace of rate increases may come as soon as the December meeting,” Chairman Jerome Powell said lately. Still, he cautioned that the central bank would need “substantially more evidence” of inflation declining before pausing rate hikes. This has boosted the risk-on sentiments to some extent.
Meanwhile, the U.S. economy added 263,000 jobs in November 2022, above market forecasts of 200,000, per tradingeconomics. Although it marked the weakest reading since April of 2020, figures continued to point to a strong albeit slowing labor market as workers shortages continue.
Overall, the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 added 1.1%, 0.24%, 2.1% and 1.3%, respectively. Against this backdrop, below, we highlight the top-performing inverse/leveraged ETFs of last week.
ETFs in Focus KS Trust KS CSI China Internet ETF ( KWEB Quick Quote KWEB - Free Report) – Up 24.4%
The underlying CSI Overseas China Internet Index is designed to measure the performance of the investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors. The dual tailwind of easing tensions between the United States and China as well as the easing of zero-COVID restrictions triggered a huge rally. Alibaba drove Chinese tech companies higher.
First Trust Dow Jones International Internet ETF ( FDNI Quick Quote FDNI - Free Report) – Up 14.4%
The underlying Dow Jones International Internet Index is a float-adjusted market capitalization weighted index designed to measure the performance of the 40 largest and most actively traded non U.S. international companies in the Internet industry that are engaged in internet commerce and internet services.
The fund has been gaining from November. The month was all about global shopping online events like Black Friday. This has benefited the online and internet ETF. Plus, the fund has decent weight in China. Policy easing in China has also boosted the space (read:
Best ETF Areas of November). Global X EM Internet & E-Commerce ETF ( EWEB Quick Quote EWEB - Free Report) – Up 14.2%
The underlying Nasdaq CTA Emerging Markets Internet & E-commerce Net Total Return Index provides exposure to exchange-listed companies that are expected to benefit from further adoption of internet and e-commerce technologies in emerging markets countries.
The fund is heavy on China (57.8%), followed by South Korea (15.4%). Pinduoduo Inc-ADR (9.96%), Tencent Holdings (7.68%) and Alibaba (7.64%) take the top three spots in the fund. Since Chinese stocks staged a rally last week, the fund gained considerably.
Advisorshares Poseidon Dynamic Cannabis ETF – Up 12.1%
This ETF is active and does not track a benchmark. Green Thumb Industries (32.93%), Curaleaf Holdings (25.62%) and Trulieve Cannabis (17.88%) take the top three spots in the fund.
The legal marijuana market has ballooned lately, resulting in a multibillion-dollar business. President Joe Biden has officially signed a marijuana research bill into law. It marked a history as it was the first piece of standalone federal cannabis reform legislation in U.S. history, reported Marijuana Moment,
as quoted on Benzinga. Kraneshares European Carbon Allowance ETF ( KEUA Quick Quote KEUA - Free Report) – Up 11.6%
The underlying IHS Markit Carbon EUA Index tracks the most traded EUA futures contracts. Corporations and countries alike have recently joined in a climate initiative to shift to a decarbonized economy, helped by governments and demand from environmentally conscious consumers.
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.