We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The first quarter of 2023 could long be remembered for the banking crisis in the United States and Europe and the Fed’s less-hawkish stance. The year witnessed the best January in four years, a downbeat February and a moderate March.
Overall, the S&P 500 is up 7% this year (as of Mar 31, 2023), the Dow Jones has gained only 0.4%, the Nasdaq has jumped 16.8% and the Russell 2000 has advanced about 2.3%, respectively. Whenever bets over a less-hawkish Fed boosted stocks, any release of upbeat economic datapoints increased the chances of steeper Fed rate hikes and weighed on markets.
The failures of Silicon Valley Bank and Signature Bank in the United States in March and UBS' buying of Credit Suisse due to its ailing business roiled global markets last month. The Fed took benchmark rates to 4.75-5.00%.
The U.S. banking crisis has led the Fed to opt for a less-hawkish future guidance. The forward outlook, based on a median survey of FOMC members, expects only one more 25 bps hike throughout the rest of 2023, around 75 bps in decreases by the end of 2024, and 125 bps in drops by the end of 2025.
On the geopolitical front, the relationship between the United States and China deteriorated over the shooting down of the apparent Chinese spy balloons. United States Oil Fund LP (USO - Free Report) has lost about 5.2% this year. Gains from Russian supply cuts were more than offset by an expected rise in U.S. crude inventories and a moderate greenback.
Gold bullion ETF SPDR Gold Shares (GLD) has added about 8% in the first quarter of 2023. The yellow metal jumped above the 2,000 mark after the sudden collapse of two U.S. regional banks, which led to speculation that the Fed might pause rate hikes to avoid a broader fallout from the global banking system turmoil. Risk-off trade sentiments also boosted gold prices.
Bitcoin, the largest digital currency by market value, also gained momentum and topped 26,000 for the first time since June 2022 in mid-March when market sentiments turned positive on expectations of the Fed’s dovishness.
Given this, we have highlighted the best-performing ETF areas of the first quarter of 2023.
The Valkyrie Bitcoin Miners ETF is an actively-managed exchange-traded fund that invests at least 80% of its net assets in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining.
Internet
Ark Next Generation Internet ETF (ARKW - Free Report) – Up 47.0%
The ARK Next Generation Internet ETF is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances, primarily in domestic and U.S. exchange-traded foreign equity securities of companies that are relevant to the theme of next-generation internet.
All-Cap Growth
Tidal Meet Kevin Pricing Power ETF (PP - Free Report) – Up 38.9%
It is an actively-managed ETF that looks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of innovative companies. These companies are involved in the development of new products or services, technological advancements, consumer engagement, and disruptive approaches with respect to business growth. No wonder, such a product offers quality exposure and should perform better in an uncertain economic environment.
The ARK Fintech Innovation ETF is actively managed and seeks long-term growth of capital. A company is believed to be engaged in the theme of Fintech innovation if it earns a considerable portion of its revenues or market value from the theme of Fintech innovation or it has stated its primary business to be in products and services focused on the theme of Fintech innovation.
This ETF is active and does not track a benchmark. The underlying Ball Metaverse Index seeks to track the performance of globally-listed equity securities of companies that involve in activities or offer products, services, technologies, or technological capabilities to enable the Metaverse, and profit from its generated revenues.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 ETF Areas Up At Least 35% This Year
The first quarter of 2023 could long be remembered for the banking crisis in the United States and Europe and the Fed’s less-hawkish stance. The year witnessed the best January in four years, a downbeat February and a moderate March.
Overall, the S&P 500 is up 7% this year (as of Mar 31, 2023), the Dow Jones has gained only 0.4%, the Nasdaq has jumped 16.8% and the Russell 2000 has advanced about 2.3%, respectively. Whenever bets over a less-hawkish Fed boosted stocks, any release of upbeat economic datapoints increased the chances of steeper Fed rate hikes and weighed on markets.
The failures of Silicon Valley Bank and Signature Bank in the United States in March and UBS' buying of Credit Suisse due to its ailing business roiled global markets last month. The Fed took benchmark rates to 4.75-5.00%.
The U.S. banking crisis has led the Fed to opt for a less-hawkish future guidance. The forward outlook, based on a median survey of FOMC members, expects only one more 25 bps hike throughout the rest of 2023, around 75 bps in decreases by the end of 2024, and 125 bps in drops by the end of 2025.
On the geopolitical front, the relationship between the United States and China deteriorated over the shooting down of the apparent Chinese spy balloons. United States Oil Fund LP (USO - Free Report) has lost about 5.2% this year. Gains from Russian supply cuts were more than offset by an expected rise in U.S. crude inventories and a moderate greenback.
Gold bullion ETF SPDR Gold Shares (GLD) has added about 8% in the first quarter of 2023. The yellow metal jumped above the 2,000 mark after the sudden collapse of two U.S. regional banks, which led to speculation that the Fed might pause rate hikes to avoid a broader fallout from the global banking system turmoil. Risk-off trade sentiments also boosted gold prices.
Bitcoin, the largest digital currency by market value, also gained momentum and topped 26,000 for the first time since June 2022 in mid-March when market sentiments turned positive on expectations of the Fed’s dovishness.
Given this, we have highlighted the best-performing ETF areas of the first quarter of 2023.
ETFs in Focus
Bitcoin
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 127.6%
The Valkyrie Bitcoin Miners ETF is an actively-managed exchange-traded fund that invests at least 80% of its net assets in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining.
Internet
Ark Next Generation Internet ETF (ARKW - Free Report) – Up 47.0%
The ARK Next Generation Internet ETF is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances, primarily in domestic and U.S. exchange-traded foreign equity securities of companies that are relevant to the theme of next-generation internet.
All-Cap Growth
Tidal Meet Kevin Pricing Power ETF (PP - Free Report) – Up 38.9%
It is an actively-managed ETF that looks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of innovative companies. These companies are involved in the development of new products or services, technological advancements, consumer engagement, and disruptive approaches with respect to business growth. No wonder, such a product offers quality exposure and should perform better in an uncertain economic environment.
Fintech
Ark Fintech Innovation ETF (ARKF - Free Report) – Up 38.4%
The ARK Fintech Innovation ETF is actively managed and seeks long-term growth of capital. A company is believed to be engaged in the theme of Fintech innovation if it earns a considerable portion of its revenues or market value from the theme of Fintech innovation or it has stated its primary business to be in products and services focused on the theme of Fintech innovation.
Metaverse
Roundhill Ball Metaverse ETF (METV - Free Report) – Up 35.6%
This ETF is active and does not track a benchmark. The underlying Ball Metaverse Index seeks to track the performance of globally-listed equity securities of companies that involve in activities or offer products, services, technologies, or technological capabilities to enable the Metaverse, and profit from its generated revenues.