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Wall Street offered a moderate performance last week with the S&P 500 (up 0.9%), the Dow Jones (up 0.9%), the Nasdaq (up 1.3%), the Russell 2000 (down 1.3%) returning in the range of down 1.3% to up 1.3%. Presently, Wall Street is preoccupied with the earnings season and has received varied corporate results.Last week was marked with upbeat big tech earnings, which boosted the tech-heavy Nasdaq the most.
Meanwhile, the regional banking crisis flared up all over again and First Republic shares again started to fall. According to the Wall Street Journal, JPMorgan Chase & Co. and PNC Financial Services Group are competing to acquire First Republic Bank in a deal that would take place after the troubled bank is anticipated to be seized by the government, as quoted on Economic Times (read: Time to Steer Clear of Regional Bank ETFs With Renewed FRC Crisis?).
Meanwhile, the US economy grew at an annualized pace of 1.1% during the first quarter of 2023, falling short of consensus forecasts of 1.9% surveyed by Bloomberg. The data highlighted a slowdown in wholesale trade, machinery, equipment, supplies, and manufacturing, as well as a decline in single-family construction, contributing to the lower growth rate. However, growth in consumer spending in goods and services helped keep annualized growth positive for the quarter (read: Should ETF Investors at all Worry About Slowing U.S. Economy?).
Against this backdrop, below we highlight a few ETFs of last week that breezed past the broader market.
Sugar futures rose to the highest level since January of 2017, thanks to a stronger Brazilian real as well as supply crunch. “As industry groups point to the end of the crushing season, heavy rainfall in top producer and exporter Brazil caused mills to leave millions of tonnes of sugarcane crops untouched in fields to be harvested next year, significantly reducing supply,” as quoted on Tradingeconomics. Plus, inclement weather in other producing countries like Thailand, Australia, and Central America also delayed harvests (read: Tap the Rally in Sweetener Prices With Sugar ETFs).
Uranium specialists predict a rise in uranium prices in 2023, per mining.com. Due to the energy crisis caused by the Russian-Ukraine war, several countries including Japan, France, South Korea, India, the UK, the US, and Germany have recently announced new constructions, incentives, and funding for nuclear power.Most countries are extending the life of their nuclear power plants and expanding their fleets.
Bitcoin
Bitwise Bitcoin Strategy Optimum Roll ETF (BITC - Free Report) – Up 7.5%
Vaneck ETF Trust Vaneck Bitcoin Strategy ETF – Up 7.4%
April 2023 has been one of the biggest months for cryptocurrency. In the aftermath of the banking crisis, cryptocurrencies have experienced a significant surge in value as conventional investment options lose appeal among the broader investor base.
Cannabis
Advisorshares Pure US Cannabis ETF (MSOS - Free Report) – Up 7.4%
Cannabis-related stocks experienced a significant boost on Apr 27 as the Secure and Fair Enforcement (SAFE) Banking Act re-introduced in the U.S. Senate and House of Representatives. Currently, many banks avoid working with marijuana companies due to the industry's illegal status at the federal level. This has led to a reliance on cash transactions, making it difficult for cannabis businesses to access loans, lines of credit, and other essential financial services. If passed, the SAFE Banking Act would level the playing field for marijuana businesses in states where cannabis, facilitating growth and attracting investment (read: SAFE Banking Act Resurgence Boosts Pot ETFs: A New Era Ahead?).
Carbon Offset Strategy
KrraneShares Global Carbon Offset Strategy ETF – Up 4.9%
Going green has become the mantra to save the earth. Governments around the world are focused on moving toward net-zero emissions by 2050 set by the 2015 Paris agreement. Some companies are trying to reduce their carbon footprint voluntarily.
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 that is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps. Such initiatives have boosted carbon-allowance exchange-traded products.
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Top-Performing ETF Areas of Last Week
Wall Street offered a moderate performance last week with the S&P 500 (up 0.9%), the Dow Jones (up 0.9%), the Nasdaq (up 1.3%), the Russell 2000 (down 1.3%) returning in the range of down 1.3% to up 1.3%. Presently, Wall Street is preoccupied with the earnings season and has received varied corporate results.Last week was marked with upbeat big tech earnings, which boosted the tech-heavy Nasdaq the most.
Meanwhile, the regional banking crisis flared up all over again and First Republic shares again started to fall. According to the Wall Street Journal, JPMorgan Chase & Co. and PNC Financial Services Group are competing to acquire First Republic Bank in a deal that would take place after the troubled bank is anticipated to be seized by the government, as quoted on Economic Times (read: Time to Steer Clear of Regional Bank ETFs With Renewed FRC Crisis?).
Meanwhile, the US economy grew at an annualized pace of 1.1% during the first quarter of 2023, falling short of consensus forecasts of 1.9% surveyed by Bloomberg. The data highlighted a slowdown in wholesale trade, machinery, equipment, supplies, and manufacturing, as well as a decline in single-family construction, contributing to the lower growth rate. However, growth in consumer spending in goods and services helped keep annualized growth positive for the quarter (read: Should ETF Investors at all Worry About Slowing U.S. Economy?).
Against this backdrop, below we highlight a few ETFs of last week that breezed past the broader market.
ETFs in Focus
Sugar
iPatha.B Sugar Subindex TR ETN – Up 8.3%
Teucrium Sugar (CANE - Free Report) – Up 8.2%
Sugar futures rose to the highest level since January of 2017, thanks to a stronger Brazilian real as well as supply crunch. “As industry groups point to the end of the crushing season, heavy rainfall in top producer and exporter Brazil caused mills to leave millions of tonnes of sugarcane crops untouched in fields to be harvested next year, significantly reducing supply,” as quoted on Tradingeconomics. Plus, inclement weather in other producing countries like Thailand, Australia, and Central America also delayed harvests (read: Tap the Rally in Sweetener Prices With Sugar ETFs).
Uranium Miners
Sprott Junior Uranium Miners ETF (URNJ - Free Report) – Up 7.7%
Sprott Uranium Miners ETF (URNM - Free Report) – Up 5.7%
Uranium specialists predict a rise in uranium prices in 2023, per mining.com. Due to the energy crisis caused by the Russian-Ukraine war, several countries including Japan, France, South Korea, India, the UK, the US, and Germany have recently announced new constructions, incentives, and funding for nuclear power.Most countries are extending the life of their nuclear power plants and expanding their fleets.
Bitcoin
Bitwise Bitcoin Strategy Optimum Roll ETF (BITC - Free Report) – Up 7.5%
Vaneck ETF Trust Vaneck Bitcoin Strategy ETF – Up 7.4%
April 2023 has been one of the biggest months for cryptocurrency. In the aftermath of the banking crisis, cryptocurrencies have experienced a significant surge in value as conventional investment options lose appeal among the broader investor base.
Cannabis
Advisorshares Pure US Cannabis ETF (MSOS - Free Report) – Up 7.4%
Listed Roundhill Cannabis ETF (WEED - Free Report) – Up 6.0%
Cannabis-related stocks experienced a significant boost on Apr 27 as the Secure and Fair Enforcement (SAFE) Banking Act re-introduced in the U.S. Senate and House of Representatives. Currently, many banks avoid working with marijuana companies due to the industry's illegal status at the federal level. This has led to a reliance on cash transactions, making it difficult for cannabis businesses to access loans, lines of credit, and other essential financial services. If passed, the SAFE Banking Act would level the playing field for marijuana businesses in states where cannabis, facilitating growth and attracting investment (read: SAFE Banking Act Resurgence Boosts Pot ETFs: A New Era Ahead?).
Carbon Offset Strategy
KrraneShares Global Carbon Offset Strategy ETF – Up 4.9%
Going green has become the mantra to save the earth. Governments around the world are focused on moving toward net-zero emissions by 2050 set by the 2015 Paris agreement. Some companies are trying to reduce their carbon footprint voluntarily.
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 that is tightened over time. Big carbon emitters need to buy these pollution permits to stay under regularity caps. Such initiatives have boosted carbon-allowance exchange-traded products.