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5 ETF Winners in Wednesday's Session as Yields Retreat
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Wall Street ended in green at the close of Wednesday’s trading session after yields pulled back from their multi-year highs. The Dow Jones Industrial Average broke a three-day losing streak, rising 0.4%, while the S&P 500 and the Nasdaq Composite Index gained 0.8% and 1.3%, respectively.
While many corners of the space have shown strength, we have highlighted five best-performing ETFs of the day that were the biggest beneficiaries of the change in trend. These include GraniteShares 1.75x Long TSLA Daily ETF (TSLR - Free Report) , Direxion Daily Consumer Discretionary Bull 3X Shares (WANT - Free Report) , BMO REX MicroSectors FANG+ Index 3X Leveraged ETN (FNGU - Free Report) , Defiance Pure Electric Vehicle ETF and Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) .
The 10-year Treasury yields slipped from highs last seen in 2007 after private payroll data pointed to a weakening labor market. Private payrolls grew 89,000 in September, well below the Dow Jones estimate of 160,000 and down from the revised reading of 180,000 in August. This could revive bets that the Fed can refrain from further interest rate increases. This drove technology stocks higher (read: Inverse Treasury ETFs Surge as Yields Rise).
Additionally, traders have trimmed wagers on a rate increase this year after the latest data suggest that demand in several industries is slowing. A report from the Institute for Supply Management showed the services sector pulled back modestly last month to the lowest level this year.
Notably, higher interest rates have increased fears of a recession and have pushed mortgage rates near 8%. Consequently, mortgage demand fell to its lowest levels since 1996.
We have detailed the abovementioned ETFs here:
GraniteShares 1.75x Long TSLA Daily ETF (TSLR - Free Report) – Up 10.2%
GraniteShares 1.75x Long TSLA Daily ETF offers 1.75 times (170%) the daily percentage change of the common stock of Tesla (TSLA), charging 1.50% in annual fees. It has amassed $4.6 million in its asset base since its debut in late August. GraniteShares 1.75x Long TSLA Daily ETF trades in an average daily volume of 58,000 shares.
Direxion Daily Consumer Discretionary Bull 3X Shares offers leveraged exposure to the consumer discretionary sector. It provides three times exposure to the Consumer Discretionary Select Sector Index, charging 95 bps in annual fees. Direxion Daily Consumer Discretionary Bull 3X Shares has AUM of $26.9 million and an average daily volume of 34,000 shares.
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN (FNGU - Free Report) – Up 5.6%
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN seeks to offer three times leveraged exposure to the NYSE FANG Index, charging 95 bps in annual fees. It has accumulated $2 billion in its asset base and trades in an average daily volume of 2 million shares.
Defiance Pure Electric Vehicle ETF – Up 4.6%
Defiance Pure Electric Vehicle ETF is an actively managed fund that seeks to track the performance of a basket of common shares, which are equally weighted on a quarterly basis, of the five largest (by market capitalization) electric vehicle manufacturers included in the Solactive Pure US Electric Vehicle Index. It charges 68 bps in annual fees and trades in a light volume of 9,000 shares. Defiance Pure Electric Vehicle ETF debuted in the space in June and has accumulated $5 million since then (read: 5 Sector ETFs That Beat the Market in Q3).
Direxion Daily Homebuilders & Supplies Bull 3X Shares provides leveraged exposure to homebuilders. It creates a three-times-long position in the Dow Jones U.S. Select Home Construction Index, charging an annual fee of 93 bps. Direxion Daily Homebuilders & Supplies Bull 3X Shares trades in a good average daily volume of about 231,000 shares and has accumulated $160.1 million in its asset base.
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5 ETF Winners in Wednesday's Session as Yields Retreat
Wall Street ended in green at the close of Wednesday’s trading session after yields pulled back from their multi-year highs. The Dow Jones Industrial Average broke a three-day losing streak, rising 0.4%, while the S&P 500 and the Nasdaq Composite Index gained 0.8% and 1.3%, respectively.
While many corners of the space have shown strength, we have highlighted five best-performing ETFs of the day that were the biggest beneficiaries of the change in trend. These include GraniteShares 1.75x Long TSLA Daily ETF (TSLR - Free Report) , Direxion Daily Consumer Discretionary Bull 3X Shares (WANT - Free Report) , BMO REX MicroSectors FANG+ Index 3X Leveraged ETN (FNGU - Free Report) , Defiance Pure Electric Vehicle ETF and Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) .
The 10-year Treasury yields slipped from highs last seen in 2007 after private payroll data pointed to a weakening labor market. Private payrolls grew 89,000 in September, well below the Dow Jones estimate of 160,000 and down from the revised reading of 180,000 in August. This could revive bets that the Fed can refrain from further interest rate increases. This drove technology stocks higher (read: Inverse Treasury ETFs Surge as Yields Rise).
Additionally, traders have trimmed wagers on a rate increase this year after the latest data suggest that demand in several industries is slowing. A report from the Institute for Supply Management showed the services sector pulled back modestly last month to the lowest level this year.
Notably, higher interest rates have increased fears of a recession and have pushed mortgage rates near 8%. Consequently, mortgage demand fell to its lowest levels since 1996.
We have detailed the abovementioned ETFs here:
GraniteShares 1.75x Long TSLA Daily ETF (TSLR - Free Report) – Up 10.2%
GraniteShares 1.75x Long TSLA Daily ETF offers 1.75 times (170%) the daily percentage change of the common stock of Tesla (TSLA), charging 1.50% in annual fees. It has amassed $4.6 million in its asset base since its debut in late August. GraniteShares 1.75x Long TSLA Daily ETF trades in an average daily volume of 58,000 shares.
Direxion Daily Consumer Discretionary Bull 3X Shares (WANT - Free Report) – Up 6%
Direxion Daily Consumer Discretionary Bull 3X Shares offers leveraged exposure to the consumer discretionary sector. It provides three times exposure to the Consumer Discretionary Select Sector Index, charging 95 bps in annual fees. Direxion Daily Consumer Discretionary Bull 3X Shares has AUM of $26.9 million and an average daily volume of 34,000 shares.
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN (FNGU - Free Report) – Up 5.6%
BMO REX MicroSectors FANG+ Index 3X Leveraged ETN seeks to offer three times leveraged exposure to the NYSE FANG Index, charging 95 bps in annual fees. It has accumulated $2 billion in its asset base and trades in an average daily volume of 2 million shares.
Defiance Pure Electric Vehicle ETF – Up 4.6%
Defiance Pure Electric Vehicle ETF is an actively managed fund that seeks to track the performance of a basket of common shares, which are equally weighted on a quarterly basis, of the five largest (by market capitalization) electric vehicle manufacturers included in the Solactive Pure US Electric Vehicle Index. It charges 68 bps in annual fees and trades in a light volume of 9,000 shares. Defiance Pure Electric Vehicle ETF debuted in the space in June and has accumulated $5 million since then (read: 5 Sector ETFs That Beat the Market in Q3).
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) - Up 4.1%
Direxion Daily Homebuilders & Supplies Bull 3X Shares provides leveraged exposure to homebuilders. It creates a three-times-long position in the Dow Jones U.S. Select Home Construction Index, charging an annual fee of 93 bps. Direxion Daily Homebuilders & Supplies Bull 3X Shares trades in a good average daily volume of about 231,000 shares and has accumulated $160.1 million in its asset base.