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Wall Street was pretty upbeat with the S&P 500 (up 2.67%), the Dow Jones (up 2.0%), the Nasdaq (up 4.8%) and the Russell 2000 (up 5.3%) offering superb returns last week. The S&P 500 and the Nasdaq logged their best week since November, per CNBC. The 10-year U.S. treasury yield started the week at 3.53%, hit a high of 3.61% and ended at 3.49%. The decline in the U.S. treasury yield triggered the stock market rally.
The consumer price index dipped 0.1% in December after gaining 0.1% in November. It rose 6.5% year over year in December, down from a 7.1% year-over-year increase in November and a recent peak of 9.1% in June. The annual inflation growth was the smallest since October 2021. The data has put the Federal Reserve on track to again slow the pace of interest-rate hikes.
The latest job data showed a deceleration in wage growth, which gave investors hope that the Fed could ease off on its interest-rate increases, resulting in a boost to the equity market. There are 75.7% chances of a 25 bps rate hike in the next Fed meeting. The current target rate is 425-450 bps.
Against this backdrop, below, we highlight a few inverse/leveraged ETFs of the last week.
VanEck Digital Transformation ETF (DAPP) – Up 40.6%
Bitcoin surged last week amid optimism that it may have bottomed. Talks that inflation has peaked and will exhibit a downtrend in 2023 are doing rounds. This has bolstered risk-on trade sentiments and favored the beaten-down asset cryptocurrency.
Companies within ARKG are focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments and advancements in genomics into their business. ARKG will be concentrated in issuers in any industry or group of industries in the health care sector, including issuers having their principal business activities in the biotechnology industry.
Clean Energy
Invesco WilderHill Clean Energy ETF(PBW - Free Report) – Up 14.8%
Global X Hydrogen ETF (HYDR) – Up 13.8%
Clean energy exhibited an uptrend last week. Hydrogen fuels deserve a special mention. Clean hydrogen and hydrogen-based fuels could play a central role in efforts to decarbonize the global energy system, alongside technologies like renewables and carbon capture, utilization and storage solutions.
Tin
iPath Series B Bloomberg Tin Subindex Total Return ETN – Up 14.1%
The underlying Bloomberg Tin Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on tin. Tin futures were trading above the $25,000 per tonne mark, a level not seen since mid-July, as top consumer China reopened the economy, thus boosting the outlook for demand.
All-Cap Blend
Roundhill MEME ETF – Up 12.8%
The underlying Solactive Roundhill Meme Stock Index consists of 25 equal-weighted U.S. listed equity securities that exhibit a combination of elevated social media activity and high short interest. The fund charges 69 bps in fees and yields 2.41% annually.
There were rallies in one-time meme stocks like Bed Bath & Beyond (BBBY) and Carvana (CVNA) last week as some investors have entered 2023 after a tough 2022.
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Best ETF Areas of Last Week
Wall Street was pretty upbeat with the S&P 500 (up 2.67%), the Dow Jones (up 2.0%), the Nasdaq (up 4.8%) and the Russell 2000 (up 5.3%) offering superb returns last week. The S&P 500 and the Nasdaq logged their best week since November, per CNBC. The 10-year U.S. treasury yield started the week at 3.53%, hit a high of 3.61% and ended at 3.49%. The decline in the U.S. treasury yield triggered the stock market rally.
The consumer price index dipped 0.1% in December after gaining 0.1% in November. It rose 6.5% year over year in December, down from a 7.1% year-over-year increase in November and a recent peak of 9.1% in June. The annual inflation growth was the smallest since October 2021. The data has put the Federal Reserve on track to again slow the pace of interest-rate hikes.
The latest job data showed a deceleration in wage growth, which gave investors hope that the Fed could ease off on its interest-rate increases, resulting in a boost to the equity market. There are 75.7% chances of a 25 bps rate hike in the next Fed meeting. The current target rate is 425-450 bps.
Against this backdrop, below, we highlight a few inverse/leveraged ETFs of the last week.
ETFs in Focus
Cryptocurrency
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 49.5%
VanEck Digital Assets Mining ETF – Up 48.8%
VanEck Digital Transformation ETF (DAPP) – Up 40.6%
Bitcoin surged last week amid optimism that it may have bottomed. Talks that inflation has peaked and will exhibit a downtrend in 2023 are doing rounds. This has bolstered risk-on trade sentiments and favored the beaten-down asset cryptocurrency.
Biotech
ARK Genomic Revolution ETF (ARKG - Free Report) – Up 16%
Companies within ARKG are focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments and advancements in genomics into their business. ARKG will be concentrated in issuers in any industry or group of industries in the health care sector, including issuers having their principal business activities in the biotechnology industry.
Clean Energy
Invesco WilderHill Clean Energy ETF (PBW - Free Report) – Up 14.8%
Global X Hydrogen ETF (HYDR) – Up 13.8%
Clean energy exhibited an uptrend last week. Hydrogen fuels deserve a special mention. Clean hydrogen and hydrogen-based fuels could play a central role in efforts to decarbonize the global energy system, alongside technologies like renewables and carbon capture, utilization and storage solutions.
Tin
iPath Series B Bloomberg Tin Subindex Total Return ETN – Up 14.1%
The underlying Bloomberg Tin Subindex Total Return reflects the returns that are potentially available through an unleveraged investment in the futures contracts on tin. Tin futures were trading above the $25,000 per tonne mark, a level not seen since mid-July, as top consumer China reopened the economy, thus boosting the outlook for demand.
All-Cap Blend
Roundhill MEME ETF – Up 12.8%
The underlying Solactive Roundhill Meme Stock Index consists of 25 equal-weighted U.S. listed equity securities that exhibit a combination of elevated social media activity and high short interest. The fund charges 69 bps in fees and yields 2.41% annually.
There were rallies in one-time meme stocks like Bed Bath & Beyond (BBBY) and Carvana (CVNA) last week as some investors have entered 2023 after a tough 2022.