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Wall Street ended a tumultuous week in the green amid continued worries over the banking system. The Dow Jones and the S&P 500 Index gained 1.2% and 1.4%, respectively, last week and the tech-heavy Nasdaq Composite Index was up 1.6%.
As such, a few corners of the stock market outperformed last week. Global X Social Media Index ETF (SOCL - Free Report) , Sprott Junior Gold Miners ETF (SGDJ - Free Report) , Invesco Solar ETF (TAN - Free Report) , VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) and KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report) led the way higher.
The rally came mostly from the Fed’s action. As expected, the Fed raised interest rates by 25 bps in the FOMC meeting, taking the range for the fed funds rate to 4.75-5%, the highest since October 2007. It signaled that an end to interest rate increases could be on the horizon by saying that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time (read: ETF Winners From the Fed Meeting & Yellen's Testimony).
In its statement, the central bank said that recent indicators pointed to modest growth in spending and production. Job gains had picked up and were running at a robust pace. The unemployment rate has remained low, and inflation remains elevated. Additionally, the Fed tried to assure investors that the U.S. banking system would remain stable. However, the latest interest rate hikes raised concerns about a potential recession.
The gains came despite the German giant Deutsche Bank woes, which accelerated the banking sector turmoil. Shares of the German giant tumbled 24% last week and followed a steep rise in the cost of ensuring the bank’s debt against the risk of default. Deutsche’s credit default swaps reached over 220 basis points, the most since late 2018.
Meanwhile, the bank crisis and recession fears have triggered a capital flight from oil to gold. The yellow metal topped $2,000 for the second time in a week, sparking a rally in the gold mining sector. Many investors also flocked to cash-rich technology companies, seeing them as safe options amid the turmoil (read: ETF Winners & Losers from the Banking Crisis).
ETFs That Gained
We have profiled the above-mentioned ETFs in detail below:
Global X Social Media Index ETF (SOCL - Free Report) – Up 5.4%
Global X Social Media Index ETF provides investors access to social media companies around the world and has amassed $104.5 million in its asset base. It tracks the Solactive Social Media Total Return Index, holding 42 securities in the basket.
Global X Social Media Index ETF charges 0.65% in annual fees and sees lower trading volumes of roughly 34,000 shares a day. The fund has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Sprott Junior Gold Miners ETF follows the Solactive Junior Gold Miners Custom Factors Index, which measures the performance of junior gold producers with the strongest revenue growth and junior exploration companies with the strongest stock price momentum. It holds 44 stocks in its basket, with Canadian firms making up the largest share at 55.6%, followed by Australia (39.3%).
Sprott Junior Gold Miners ETF has amassed $104.5 million in its asset base and trades in a lower volume of around 39,000 shares a day. It charges 50 bps in annual fees from investors (read: Can Gold ETFs Continue Their Winning Run?).
Invesco Solar ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index. It holds 53 stocks in the basket, with American firms holding 46.7% of the fund’s portfolio, followed by China (21%) and Spain (5.9%).
Invesco Solar ETF has amassed $2.2 billion in its asset base and trades in a solid volume of around 897,000 shares a day. It charges investors 69 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook.
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) – Up 4.5%
VanEck Video Gaming and eSports ETF offers exposure to global companies involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. ESPO holds 25 stocks in its basket, with a tilt toward American firms, which account for 45.3% of the portfolio, while Japan and China round off the next two with a double-digit allocation each.
VanEck Video Gaming and eSports ETF has gathered $276.3 million in its asset base while trading in an average daily volume of 31,000 shares. ESPO charges 56 bps in annual fees from investors (read: 5 ETFs to Make the Most of March Madness Betting).
KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report) – Up 4.2%
KraneShares Electric Vehicles & Future Mobility Index ETF offers global exposure to companies engaged in the production of electric vehicles and their components. It tracks the Bloomberg Electric Vehicles Index, which includes issuers engaged in electric vehicle production, autonomous driving, shared mobility, lithium and copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses.
KraneShares Electric Vehicles & Future Mobility Index ETF has amassed $177.1 million in its asset base while trading in volume of 30,000 shares per day on average. It charges 70 bps in fees per year.
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5 ETFs That Outperformed the Market Last Week
Wall Street ended a tumultuous week in the green amid continued worries over the banking system. The Dow Jones and the S&P 500 Index gained 1.2% and 1.4%, respectively, last week and the tech-heavy Nasdaq Composite Index was up 1.6%.
As such, a few corners of the stock market outperformed last week. Global X Social Media Index ETF (SOCL - Free Report) , Sprott Junior Gold Miners ETF (SGDJ - Free Report) , Invesco Solar ETF (TAN - Free Report) , VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) and KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report) led the way higher.
The rally came mostly from the Fed’s action. As expected, the Fed raised interest rates by 25 bps in the FOMC meeting, taking the range for the fed funds rate to 4.75-5%, the highest since October 2007. It signaled that an end to interest rate increases could be on the horizon by saying that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time (read: ETF Winners From the Fed Meeting & Yellen's Testimony).
In its statement, the central bank said that recent indicators pointed to modest growth in spending and production. Job gains had picked up and were running at a robust pace. The unemployment rate has remained low, and inflation remains elevated. Additionally, the Fed tried to assure investors that the U.S. banking system would remain stable. However, the latest interest rate hikes raised concerns about a potential recession.
The gains came despite the German giant Deutsche Bank woes, which accelerated the banking sector turmoil. Shares of the German giant tumbled 24% last week and followed a steep rise in the cost of ensuring the bank’s debt against the risk of default. Deutsche’s credit default swaps reached over 220 basis points, the most since late 2018.
Meanwhile, the bank crisis and recession fears have triggered a capital flight from oil to gold. The yellow metal topped $2,000 for the second time in a week, sparking a rally in the gold mining sector. Many investors also flocked to cash-rich technology companies, seeing them as safe options amid the turmoil (read: ETF Winners & Losers from the Banking Crisis).
ETFs That Gained
We have profiled the above-mentioned ETFs in detail below:
Global X Social Media Index ETF (SOCL - Free Report) – Up 5.4%
Global X Social Media Index ETF provides investors access to social media companies around the world and has amassed $104.5 million in its asset base. It tracks the Solactive Social Media Total Return Index, holding 42 securities in the basket.
Global X Social Media Index ETF charges 0.65% in annual fees and sees lower trading volumes of roughly 34,000 shares a day. The fund has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Sprott Junior Gold Miners ETF (SGDJ - Free Report) – Up 5.2%
Sprott Junior Gold Miners ETF follows the Solactive Junior Gold Miners Custom Factors Index, which measures the performance of junior gold producers with the strongest revenue growth and junior exploration companies with the strongest stock price momentum. It holds 44 stocks in its basket, with Canadian firms making up the largest share at 55.6%, followed by Australia (39.3%).
Sprott Junior Gold Miners ETF has amassed $104.5 million in its asset base and trades in a lower volume of around 39,000 shares a day. It charges 50 bps in annual fees from investors (read: Can Gold ETFs Continue Their Winning Run?).
Invesco Solar ETF (TAN - Free Report) – Up 5.1%
Invesco Solar ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index. It holds 53 stocks in the basket, with American firms holding 46.7% of the fund’s portfolio, followed by China (21%) and Spain (5.9%).
Invesco Solar ETF has amassed $2.2 billion in its asset base and trades in a solid volume of around 897,000 shares a day. It charges investors 69 bps in fees per year and has a Zacks ETF Rank #2 with a High risk outlook.
VanEck Vectors Video Gaming and eSports ETF (ESPO - Free Report) – Up 4.5%
VanEck Video Gaming and eSports ETF offers exposure to global companies involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. ESPO holds 25 stocks in its basket, with a tilt toward American firms, which account for 45.3% of the portfolio, while Japan and China round off the next two with a double-digit allocation each.
VanEck Video Gaming and eSports ETF has gathered $276.3 million in its asset base while trading in an average daily volume of 31,000 shares. ESPO charges 56 bps in annual fees from investors (read: 5 ETFs to Make the Most of March Madness Betting).
KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report) – Up 4.2%
KraneShares Electric Vehicles & Future Mobility Index ETF offers global exposure to companies engaged in the production of electric vehicles and their components. It tracks the Bloomberg Electric Vehicles Index, which includes issuers engaged in electric vehicle production, autonomous driving, shared mobility, lithium and copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses.
KraneShares Electric Vehicles & Future Mobility Index ETF has amassed $177.1 million in its asset base while trading in volume of 30,000 shares per day on average. It charges 70 bps in fees per year.