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Wall Street was downbeat last week, with the S&P 500 losing 1.1%, the Dow Jones retreating 0.2%, the Nasdaq Composite slipping 2.4% and the Russell 2000 sliding 3.4%, respectively. The S&P 500 and the Nasdaq recorded the worst week since December.
Investors analyzed the recent commentary from Federal Reserve and mixed-to-upbeat economic data points. This has resulted in a rise in rates as the Fed is now believed to be hiking rates more than expected before.
The U.S. benchmark treasury yield started the week at 3.63% and ended the week at 3.74%, while the two-year U.S. treasury yield started the week at 4.44% and ended the week at 4.50%. Such an uptick in rates caused a decline in Wall Street.
As far as earnings are concerned, about 70% S&P 500 companies have reported so far and around 70% of those companies have surpassed analyst expectations for fourth-quarter 2022. That’s a smaller share of companies beating expectations than the three-year historical average of 79%, according to The Earnings Scout, as quoted on CNBC.
Meanwhile, the U.S.-China aerial conflict intensified. President Joe Biden ordered the Pentagon to shoot down an unidentified "high-altitude object" off Alaska on Friday. A week before, the U.S. military shot down a suspected Chinese 'spy' balloon off the Carolina coast (read: U.S.-China Aerial Conflict Intensifies: ETF Areas in Tight Spot).
Then, Canadian prime minister Justin Trudeau announced that an unidentified object was shot down in its airspace on Saturday. If these were not enough, President Joe Biden ordered yet another unidentified object to be downed near Lake Huron, in the vicinity of the Canadian border, on Sunday afternoon, indicating the fourth such aerial invasion into North American airspace this month.
Against this backdrop, below we highlight a few ETFs that won last week.
ETFs in Focus
Advocate Rising Rate Hedge ETF – Up 10.6%
The 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. The rise in yields contributed to the rally in the interest-rate hedge ETFs.
Oil prices jumped after Russia announces 5% oil output cut in March. Russia will cut oil production by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday, as the West enacted price caps on Russian oil and oil products. The G7, the European Union and Australia agreed to ban the use of Western-supplied maritime insurance, finance and brokering for seaborne Russian oil priced above $60 per barrel from Dec 5 as part of Western sanctions on Moscow over its actions in Ukraine.
Noble Absolute Return ETF – Up 7.3%
The Noble Absolute Return ETF seeks capital appreciation across a full market cycle. The portfolio is made up of long positions in best securities with improving circumstances and short positions in best securities with worsening circumstances. The fund charges 98 bps.
The AdvisorShares Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities.As the broader market slumped last week, inverse ETFs like HDGE won.
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Top-Performing ETFs of Last Week
Wall Street was downbeat last week, with the S&P 500 losing 1.1%, the Dow Jones retreating 0.2%, the Nasdaq Composite slipping 2.4% and the Russell 2000 sliding 3.4%, respectively. The S&P 500 and the Nasdaq recorded the worst week since December.
Investors analyzed the recent commentary from Federal Reserve and mixed-to-upbeat economic data points. This has resulted in a rise in rates as the Fed is now believed to be hiking rates more than expected before.
The U.S. benchmark treasury yield started the week at 3.63% and ended the week at 3.74%, while the two-year U.S. treasury yield started the week at 4.44% and ended the week at 4.50%. Such an uptick in rates caused a decline in Wall Street.
As far as earnings are concerned, about 70% S&P 500 companies have reported so far and around 70% of those companies have surpassed analyst expectations for fourth-quarter 2022. That’s a smaller share of companies beating expectations than the three-year historical average of 79%, according to The Earnings Scout, as quoted on CNBC.
Meanwhile, the U.S.-China aerial conflict intensified. President Joe Biden ordered the Pentagon to shoot down an unidentified "high-altitude object" off Alaska on Friday. A week before, the U.S. military shot down a suspected Chinese 'spy' balloon off the Carolina coast (read: U.S.-China Aerial Conflict Intensifies: ETF Areas in Tight Spot).
Then, Canadian prime minister Justin Trudeau announced that an unidentified object was shot down in its airspace on Saturday. If these were not enough, President Joe Biden ordered yet another unidentified object to be downed near Lake Huron, in the vicinity of the Canadian border, on Sunday afternoon, indicating the fourth such aerial invasion into North American airspace this month.
Against this backdrop, below we highlight a few ETFs that won last week.
ETFs in Focus
Advocate Rising Rate Hedge ETF – Up 10.6%
The 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. The rise in yields contributed to the rally in the interest-rate hedge ETFs.
US Brent Oil (BNO - Free Report) – Up 8.7%
Oil prices jumped after Russia announces 5% oil output cut in March. Russia will cut oil production by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday, as the West enacted price caps on Russian oil and oil products. The G7, the European Union and Australia agreed to ban the use of Western-supplied maritime insurance, finance and brokering for seaborne Russian oil priced above $60 per barrel from Dec 5 as part of Western sanctions on Moscow over its actions in Ukraine.
Noble Absolute Return ETF – Up 7.3%
The Noble Absolute Return ETF seeks capital appreciation across a full market cycle. The portfolio is made up of long positions in best securities with improving circumstances and short positions in best securities with worsening circumstances. The fund charges 98 bps.
Active Bear ETF (HDGE - Free Report) – Up 6.0%
The AdvisorShares Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities.As the broader market slumped last week, inverse ETFs like HDGE won.