Back to top

Image: Bigstock

4 Best-Performing ETF Areas of Last Week

Read MoreHide Full Article

Wall Street was upbeat last week. The S&P 500 managed to secure a weekly win after setting a new record on Thursday. The S&P 500 added 1.1% last week, the Dow Jones inched up 0.7% and the Nasdaq Composite added about 0.9%. This suggests resilience in the market, although uncertainties loom.

The tech-heavy Nasdaq Composite experienced a decline of nearly 0.4% on Friday, largely driven by Intel's disappointing first-quarter outlook. This setback has tempered some of the optimism generated by AI-related stocks that have been instrumental in pushing the market to record highs. Intel's shares took a huge hit, with its peers AMD and Nvidia also feeling the impact.

Inflation Gauge Indicates Moderation

The release of the PCE (Personal Consumption Expenditures) index for December provided further evidence of moderating inflation. The "Core" PCE, the Federal Reserve's preferred inflation measure, dropped below 3% on an annual basis, marking the slowest growth rate since March 2021.

This data, coupled with a stronger-than-expected initial estimate of fourth-quarter U.S. GDP, suggests the possibility of a "soft landing" for the US economy. The U.S. economy exhibited a robust performance in the fourth quarter of 2023, with the real Gross Domestic Product (GDP) expanding at an annualized rate of 3.3%. This growth exceeded market expectations of 2% and followed a 4.9% increase in the third quarter (read: U.S. GDP Growth Beats Expectations in Q4: ETFs to Benefit).

Earnings Reports Offer Insights

Investors also closely examined the latest batch of earnings reports. Colgate-Palmolive (CL - Free Report) stood out with robust fourth-quarter results attributed to its Latin American consumer markets. In contrast, Visa (V - Free Report) delivered a cautious revenue growth forecast, raising concerns about a slowdown in U.S. payments volume growth, which could signal an impending economic downturn.

Meanwhile, Netflix (NFLX - Free Report) logged its best weekly performance in more than a year due to a better-than-expected earnings report. Tesla (TSLA - Free Report) , the electric vehicle (EV) manufacturer, released its Q4 earnings report on Jan 24, after the market closed, which missed estimates and led to a decline in its stock price. The company also provided a pessimistic outlook for full-year production in 2024.

ETFs in Focus

Against this backdrop, below we highlight a few winning ETFs of last week.

Valkyrie Bitcoin Miners ETF (WGMI - Free Report) ) – Up 10.2%

The Valkyrie Bitcoin Miners ETF is an actively-managed exchange-traded fund that will invest at least 80% of its net assets in securities of companies that derive at least 50% of their revenue or profits from bitcoin mining operations and from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining.

Roundhill Cannabis ETF (WEED - Free Report) ) – Up 9.2%

The Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector. Cannabis stocks and ETFs have surged over the past few months since the Department of Health and Human Services asked the DEA to review its classification of cannabis. Earlier this month, a group of 12 state attorneys general sent a letter to the DEA supporting the reclassification (read: Cannabis ETFs: What's Behind the Latest Surge).

SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) ) – Up 7.1%

The SPDR S&P Oil & Gas Equipment & Services ETF seeks to replicate as closely as possible, before expenses, the total return performance of the S&P Oil & Gas Equipment & Services Select Industry Index. U.S. crude oil topped $78 in best week since September on upbeat U.S. growth and China stimulus.

Global X MSCI China Real Estate ETF – Up 6.5%

The Global X MSCI China Real Estate ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Real Estate 10/50 Index.

The People’s Bank of China surprised investors on Wednesday by revealing a bigger-than-expected RRR cut weeks in advance, providing markets with a much-needed boost. China’s central bank also revealed broad plans to guide money into sectors of national importance to boost the faltering economy this year.

Published in