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Wall Street took a beating in the Aug 15 trading session as a result of fresh concerns over the banking sector and a weakening Chinese economy. Additionally, a strong retail sales report has stoked fears of continued higher interest rates. All three major indices are down more than 1% each.
An analyst from Fitch Ratings slashed the outlook for the entire U.S. banking industry, possibly affecting the credit ratings of more than 70 banks, including giants JPMorgan Chase (JPM - Free Report) and Bank of America (BAC - Free Report) . The move came following multiple bank downgrades by fellow credit agency Moody’s and has thus deepened worries over the sector. Meanwhile, retail sales came in better than expected, rising 0.7% in July, and prompting concerns that the Fed might continue its tight policy (read: Banking Woes Still Linger? ETFs in Focus).
Additionally, retail sales and industrial production in the world’s second biggest economy grew less than expected in July, thus intensifying worries over the health of the China economy.
Notably, the S&P 500 index recorded the lowest closing since mid-July and ended below its 50-day moving average for the first time since March. This suggests that more pain might be in store, at least in the near term.
Given this, we have highlighted three best and worst-performing ETFs of Aug 15 from different segments of the stock world:
Best ETFs
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX - Free Report)
As volatility in the market rises, volatility ETFs are the top gainers. iPath Series B S&P 500 VIX Short-Term Futures ETN has gained 5.8% in a day. It focuses on the S&P 500 VIX Short-Term Futures Index, which reflects implied volatility in the S&P 500 Index at various points along the volatility forward curve. The note gives investors exposure to a daily rolling long position in the first and second months of VIX futures contracts.
iPath Series B S&P 500 VIX Short-Term Futures ETN is popular and liquid with AUM of $410.8 million and an average daily volume of 8.6 million shares. It charges 89 bps in annual fees.
Simplify Tail Risk Strategy ETF
The market sell-off has raised the appeal for lower-risk securities like CYA, which climbed 4.2%. It seeks to provide income and capital appreciation while protecting against significant downside risk to investors by hedging diversified portfolios against severe equity market sell-offs. Simplify Tail Risk Strategy ETF deploys advanced options strategies that are designed to handle multiple types of market dislocations (read: Low-Volatility ETFs to Bet Amid Market Volatility).
Simplify Tail Risk Strategy ETF has amassed $22.6 million in its asset base and charges 84 bps in annual fees from investors. It trades in volume of 59,000 shares a day on average.
The rising bets over continued rates hike have driven PFIX higher by 2.7%. Simplify Interest Rate Hedge ETF seeks to provide a hedge against a sharp increase in long-term interest rates and benefit from market stress when fixed-income volatility increases while providing the potential for income. It invests in long-dated put options on 20-year US Treasury bonds to offer the most liquid and the most cost-efficient way of getting interest rate protection.
Simplify Interest Rate Hedge ETF has accumulated $213.1 million in its asset base and trades in an average daily volume of 134,000 shares. It charges 50 bps in annual fees (read: Rates to Remain Higher for Longer? ETFs to Benefit).
Being a high growth sector, bitcoin miners were the biggest losers on the day, with WGMI losing 5.5%. Valkyrie Bitcoin Miners ETF is an actively managed ETF providing exposure to the bitcoin mining industry. WGMI invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining.
Valkyrie Bitcoin Miners ETF holds 25 stocks in its basket and charges 75 bps in annual fees. It has amassed $20.6 million in its asset base while trading in an average daily volume of 115,000 shares.
Solar is also a high beta sector and declines on market weakness. Global X Solar ETF seeks to invest in companies positioned to benefit from the advancement of the global solar technology industry. It includes companies involved in solar power production, the integration of solar into energy systems, and the development/manufacturing of solar-powered generators, engines, batteries, and other technologies related to the utilization of solar as an energy source.
Global X Solar ETF has accumulated $3.5 million in its asset base and charges 50 bps in annual fees. It trades in an average daily volume of 3,000 shares and has lost 4.6%.
Sprott Junior Copper Miners ETF is the only pure-play ETF focused on small copper miners, selected for their potential for significant revenue and asset growth. It tracks the Nasdaq Sprott Junior Copper Miners Index and holds 41 stocks in its basket.
Sprott Junior Copper Miners ETF has amassed $3.5 million in its asset base and trades in an average daily volume of 2,000 shares. It charges 75 bps in annual fees from investors.
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Best and Worst ETFs of Tuesday's Trading Session
Wall Street took a beating in the Aug 15 trading session as a result of fresh concerns over the banking sector and a weakening Chinese economy. Additionally, a strong retail sales report has stoked fears of continued higher interest rates. All three major indices are down more than 1% each.
An analyst from Fitch Ratings slashed the outlook for the entire U.S. banking industry, possibly affecting the credit ratings of more than 70 banks, including giants JPMorgan Chase (JPM - Free Report) and Bank of America (BAC - Free Report) . The move came following multiple bank downgrades by fellow credit agency Moody’s and has thus deepened worries over the sector. Meanwhile, retail sales came in better than expected, rising 0.7% in July, and prompting concerns that the Fed might continue its tight policy (read: Banking Woes Still Linger? ETFs in Focus).
Additionally, retail sales and industrial production in the world’s second biggest economy grew less than expected in July, thus intensifying worries over the health of the China economy.
Notably, the S&P 500 index recorded the lowest closing since mid-July and ended below its 50-day moving average for the first time since March. This suggests that more pain might be in store, at least in the near term.
Given this, we have highlighted three best and worst-performing ETFs of Aug 15 from different segments of the stock world:
Best ETFs
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX - Free Report)
As volatility in the market rises, volatility ETFs are the top gainers. iPath Series B S&P 500 VIX Short-Term Futures ETN has gained 5.8% in a day. It focuses on the S&P 500 VIX Short-Term Futures Index, which reflects implied volatility in the S&P 500 Index at various points along the volatility forward curve. The note gives investors exposure to a daily rolling long position in the first and second months of VIX futures contracts.
iPath Series B S&P 500 VIX Short-Term Futures ETN is popular and liquid with AUM of $410.8 million and an average daily volume of 8.6 million shares. It charges 89 bps in annual fees.
Simplify Tail Risk Strategy ETF
The market sell-off has raised the appeal for lower-risk securities like CYA, which climbed 4.2%. It seeks to provide income and capital appreciation while protecting against significant downside risk to investors by hedging diversified portfolios against severe equity market sell-offs. Simplify Tail Risk Strategy ETF deploys advanced options strategies that are designed to handle multiple types of market dislocations (read: Low-Volatility ETFs to Bet Amid Market Volatility).
Simplify Tail Risk Strategy ETF has amassed $22.6 million in its asset base and charges 84 bps in annual fees from investors. It trades in volume of 59,000 shares a day on average.
Simplify Interest Rate Hedge ETF (PFIX - Free Report)
The rising bets over continued rates hike have driven PFIX higher by 2.7%. Simplify Interest Rate Hedge ETF seeks to provide a hedge against a sharp increase in long-term interest rates and benefit from market stress when fixed-income volatility increases while providing the potential for income. It invests in long-dated put options on 20-year US Treasury bonds to offer the most liquid and the most cost-efficient way of getting interest rate protection.
Simplify Interest Rate Hedge ETF has accumulated $213.1 million in its asset base and trades in an average daily volume of 134,000 shares. It charges 50 bps in annual fees (read: Rates to Remain Higher for Longer? ETFs to Benefit).
Worst ETFs
Valkyrie Bitcoin Miners ETF (WGMI - Free Report)
Being a high growth sector, bitcoin miners were the biggest losers on the day, with WGMI losing 5.5%. Valkyrie Bitcoin Miners ETF is an actively managed ETF providing exposure to the bitcoin mining industry. WGMI invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining.
Valkyrie Bitcoin Miners ETF holds 25 stocks in its basket and charges 75 bps in annual fees. It has amassed $20.6 million in its asset base while trading in an average daily volume of 115,000 shares.
Global X Solar ETF (RAYS - Free Report)
Solar is also a high beta sector and declines on market weakness. Global X Solar ETF seeks to invest in companies positioned to benefit from the advancement of the global solar technology industry. It includes companies involved in solar power production, the integration of solar into energy systems, and the development/manufacturing of solar-powered generators, engines, batteries, and other technologies related to the utilization of solar as an energy source.
Global X Solar ETF has accumulated $3.5 million in its asset base and charges 50 bps in annual fees. It trades in an average daily volume of 3,000 shares and has lost 4.6%.
Sprott Junior Copper Miners ETF (COPJ - Free Report)
Sprott Junior Copper Miners ETF is the only pure-play ETF focused on small copper miners, selected for their potential for significant revenue and asset growth. It tracks the Nasdaq Sprott Junior Copper Miners Index and holds 41 stocks in its basket.
Sprott Junior Copper Miners ETF has amassed $3.5 million in its asset base and trades in an average daily volume of 2,000 shares. It charges 75 bps in annual fees from investors.