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Wall Street was downbeat, with the S&P 500, the Dow Jones and the Nasdaq losing 1.2%, 2% and 0.9%, respectively, last week. Among the economic datapoints, the release of U.S. jobs data was notable. The U.S. economy added 209,000 jobs in June 2023, following a downwardly revised 306,000 in May, and below market forecasts of 225,000.
It marked the lowest reading since December 2020, but was more than twice the 70,000-100,000 needed per month to continue with growth in the working-age population. Meanwhile, private sector jobs jumped by 497,000 in June, way ahead of the 267,000 gains in May and much better than the 220,000 estimate.
Non-farm employment has increased by an average of 278,000 per month over the first six months of 2023, lower than the average of 399,000 per month in 2022. The benchmark U.S. treasury yields jumped to 4.06% on Jul 7 (following an upbeat ADP job print), up from 3.86% recorded on Jul 3. The one-month U.S. treasury yield jumped to 5.32% on Jul 6, up from 5.27% recorded on Jul 3. The broader market took a dive on Jul 5 and 6 due to higher rates (read: Rates To Remain Higher For Longer? ETFs to Hedge the Trend).
However, the U.S. manufacturing sector has been facing a downturn, according to recent data released by the Institute for Supply Management (ISM) and S&P Global. Both reports showed that manufacturing activity in June contracted at a faster pace than in May (read: Should You At All Fear Weak Manufacturing? ETF Areas to Win).
Against this backdrop, below we highlight a few top-performing ETFs of last week.
ETFs in Focus
Bitcoin Miners
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) ) – Up 18.5% last week
VanEck Digital Transformation ETF (DAPP - Free Report) ) – Up 14.7% last week
Bitwise Crypto Industry Innovators ETF (BITQ) – Up 14.7% last week
Crypto-based company Coinbase Global Inc’s (COIN - Free Report) shares jumped 6.7% last week. The stock has gained strength due to BlackRock’s recent filing of a spot ETF application. The SEC has so far rejected more than 30 spot bitcoin ETF applications on concerns regarding fraud and market manipulation. BlackRock's filing includes a proposed surveillance sharing agreement between Nasdaq and an unnamed bitcoin trading platform, likely Coinbase (read: Why BlackRock ETF Filing Sent Bitcoin Surging).
Marijuana
Roundhill Cannabis ETF (WEED - Free Report) ) – Up 17.5% last week
AdvisorShares Poseidon Dynamic Cannabis ETF ) – Up 12.9% last week
Under the Biden administration, U.S. states have putting efforts to decriminalize or legalize cannabis and/or its components, there are creating more opportunities for new and existing companies. Cannabis company Cronos Group (CRON - Free Report) informed about a merger talks last week though indicated that it is early to confirm the deal. Before this Another company Tolray bought Hexo. In a nutshell, the space is consolidating.
Electric Vehicles
Defiance Pure Electric Vehicle ETF ) – Up 11.6% last week
According to an article published on Investor’s Business Daily, sales of electric vehicles (EVs), specifically all-electric or battery electric vehicles (BEVs), will reach approximately 500,000 units during the initial half of 2023. This represents a significant growth of 41% compared to same period in the previous year. Such a number is strong enough spark EV ETFs. Additionally, it is projected that the total EV sales in the United States in 2023 will exceed 1 million units, marking the first time such a milestone will be achieved.
Interest Rate Hedge ETF
Simplify Interest Rate Hedge ETF (PFIX - Free Report) ) – Up 9.8% last week
The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income. Rising rate worries led to the jump in this fund.
Energy
VanEck Oil Services ETF (OIH - Free Report) ) – Up 7.0% last week
Energy stocks logged biggest rise in a month as OPEC+ output cuts started to show effects. The market priced in Saudi Arabia’s output cut extension into August as well as another steeper-than-expected U.S. crude inventory decline.
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5 Top-Performing ETFs of Last Week
Wall Street was downbeat, with the S&P 500, the Dow Jones and the Nasdaq losing 1.2%, 2% and 0.9%, respectively, last week. Among the economic datapoints, the release of U.S. jobs data was notable. The U.S. economy added 209,000 jobs in June 2023, following a downwardly revised 306,000 in May, and below market forecasts of 225,000.
It marked the lowest reading since December 2020, but was more than twice the 70,000-100,000 needed per month to continue with growth in the working-age population. Meanwhile, private sector jobs jumped by 497,000 in June, way ahead of the 267,000 gains in May and much better than the 220,000 estimate.
Non-farm employment has increased by an average of 278,000 per month over the first six months of 2023, lower than the average of 399,000 per month in 2022. The benchmark U.S. treasury yields jumped to 4.06% on Jul 7 (following an upbeat ADP job print), up from 3.86% recorded on Jul 3. The one-month U.S. treasury yield jumped to 5.32% on Jul 6, up from 5.27% recorded on Jul 3. The broader market took a dive on Jul 5 and 6 due to higher rates (read: Rates To Remain Higher For Longer? ETFs to Hedge the Trend).
However, the U.S. manufacturing sector has been facing a downturn, according to recent data released by the Institute for Supply Management (ISM) and S&P Global. Both reports showed that manufacturing activity in June contracted at a faster pace than in May (read: Should You At All Fear Weak Manufacturing? ETF Areas to Win).
Against this backdrop, below we highlight a few top-performing ETFs of last week.
ETFs in Focus
Bitcoin Miners
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) ) – Up 18.5% last week
VanEck Digital Transformation ETF (DAPP - Free Report) ) – Up 14.7% last week
Bitwise Crypto Industry Innovators ETF (BITQ) – Up 14.7% last week
Crypto-based company Coinbase Global Inc’s (COIN - Free Report) shares jumped 6.7% last week. The stock has gained strength due to BlackRock’s recent filing of a spot ETF application. The SEC has so far rejected more than 30 spot bitcoin ETF applications on concerns regarding fraud and market manipulation. BlackRock's filing includes a proposed surveillance sharing agreement between Nasdaq and an unnamed bitcoin trading platform, likely Coinbase (read: Why BlackRock ETF Filing Sent Bitcoin Surging).
Marijuana
Roundhill Cannabis ETF (WEED - Free Report) ) – Up 17.5% last week
AdvisorShares Poseidon Dynamic Cannabis ETF ) – Up 12.9% last week
Under the Biden administration, U.S. states have putting efforts to decriminalize or legalize cannabis and/or its components, there are creating more opportunities for new and existing companies. Cannabis company Cronos Group (CRON - Free Report) informed about a merger talks last week though indicated that it is early to confirm the deal. Before this Another company Tolray bought Hexo. In a nutshell, the space is consolidating.
Electric Vehicles
Defiance Pure Electric Vehicle ETF ) – Up 11.6% last week
According to an article published on Investor’s Business Daily, sales of electric vehicles (EVs), specifically all-electric or battery electric vehicles (BEVs), will reach approximately 500,000 units during the initial half of 2023. This represents a significant growth of 41% compared to same period in the previous year. Such a number is strong enough spark EV ETFs. Additionally, it is projected that the total EV sales in the United States in 2023 will exceed 1 million units, marking the first time such a milestone will be achieved.
Interest Rate Hedge ETF
Simplify Interest Rate Hedge ETF (PFIX - Free Report) ) – Up 9.8% last week
The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income. Rising rate worries led to the jump in this fund.
Energy
VanEck Oil Services ETF (OIH - Free Report) ) – Up 7.0% last week
Energy stocks logged biggest rise in a month as OPEC+ output cuts started to show effects. The market priced in Saudi Arabia’s output cut extension into August as well as another steeper-than-expected U.S. crude inventory decline.