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Wall Street logged in the first weekly decline of a month as investors turned their attention to the latest development in the U.S.-China trade dispute. Chinese trade delegation canceled visits to farms in Montana and Nebraska dampened the optimism surrounding trade talks. U.S. President Donald Trump said he wanted a complete trade deal, not just an agreement for China to buy more U.S. agricultural goods.
The major indices’ weekly decline came despite the stimulus measures taken by major central banks that eased global growth worries. In particular, the Fed slashed interest rates for the second time since the financial crisis by 25 bps to 1.75-2% last week to sustain a decade-long economic expansion. Additionally, oil price spiked on Saudi supply disruption and Mideast tensions (read: Sector ETFs, Stocks Set to Explode After Another Rate Cut).
Further, the latest bout of upbeat data pointing to an increase in inflation, and higher consumer and business confidence as well as retail sales, underscore the strength of the economy.
Given this, we have highlighted last week’s best and worst performing ETFs:
This ETF, which offers global exposure to 22 solar stocks, climbed 8.6% last week on rising demand for solar panels and oil price jump. American firms dominate the fund’s portfolio with nearly 50.6% share, followed by China (24.7%) and Germany (6.9%). The product has amassed $490.5 million in its asset base and trades in average daily volume of 217,000 shares. It charges investors 70 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Solar ETF Hits New 52-Week High).
Gold gained last week on renewed appeal for safe havens as Trump’s further sanctions on Iran and China reportedly cut short trade negotiations with the United States. Being a leveraged play on the underlying metal prices, metal miners experience more gains than their bullion cousins in a rising metal market. GDXJ is a small-cap centric ETF that tracks the MVIS Global Junior Gold Miners Index. Holding 72 stocks in its basket, Canadian firms dominate the fund’s portfolio at 48.5%, while Australia (21.9%) and South Africa (10.2%) round out the top three. The product has AUM of $4.4 billion and charges 53 bps in annual fees. It trades in heavy volume of more than 16.5 million shares a day on average and gained 8.2% last week.
The jump in crude oil prices also pushed gasoline price higher. The fund provides investors with exposure to front-month gasoline futures, tracking RBOB gasoline for delivery to the New York harbor, which is traded on NYMEX. The ETF is illiquid with daily trading volume of about 24,000, suggesting that investors have to pay extra beyond the annual fee of 75 bps per year. The fund has managed assets of $33.7 million and increased 7.6% last week (read: Gasoline ETF Spikes After Saudi Oil Attack).
This is the first ETF focusing on the cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. The fund holds 40 securities in its basket with Canadian firms making up 57.1% of the portfolio, while American firms comprise 26.8%. The ETF has AUM of $874.9 million and trades in a solid volume of around 527,000 shares. It charges 75 basis points in annual fees and shed 8% last week (read: One More Marijuana ETF on the Block).
This ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund comprises 40 stocks and has attracted $250.8 million in its asset base. It charges 65 bps in fees per year and trades in average daily volume of 42,000 shares. IBUY was down 5.7% last week (read: ETFs & Stocks to Make the Most of Back-to-School Shopping).
Freight movement has been uncertain given fundamental and sentimental shifts. As a result, BDRY lost 5.2% last week. It is an actively managed ETF that seeks to provide exposure to daily changes in the price of dry bulk freight futures by tracking the performance of a portfolio consisting of a three-month strip of the nearest calendar quarter of futures contracts on specified indexes that measure rates for shipping dry bulk freight. The fund has accumulated about $2 million in AUM. It trades in a paltry volume of about 7,000 shares per day on average and charges a higher annual fee of 1.85% (see: all the Industrial ETFs here).
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Top & Flop ETFs of Last Week
Wall Street logged in the first weekly decline of a month as investors turned their attention to the latest development in the U.S.-China trade dispute. Chinese trade delegation canceled visits to farms in Montana and Nebraska dampened the optimism surrounding trade talks. U.S. President Donald Trump said he wanted a complete trade deal, not just an agreement for China to buy more U.S. agricultural goods.
The major indices’ weekly decline came despite the stimulus measures taken by major central banks that eased global growth worries. In particular, the Fed slashed interest rates for the second time since the financial crisis by 25 bps to 1.75-2% last week to sustain a decade-long economic expansion. Additionally, oil price spiked on Saudi supply disruption and Mideast tensions (read: Sector ETFs, Stocks Set to Explode After Another Rate Cut).
Further, the latest bout of upbeat data pointing to an increase in inflation, and higher consumer and business confidence as well as retail sales, underscore the strength of the economy.
Given this, we have highlighted last week’s best and worst performing ETFs:
Best ETFs
Invesco Solar ETF (TAN - Free Report)
This ETF, which offers global exposure to 22 solar stocks, climbed 8.6% last week on rising demand for solar panels and oil price jump. American firms dominate the fund’s portfolio with nearly 50.6% share, followed by China (24.7%) and Germany (6.9%). The product has amassed $490.5 million in its asset base and trades in average daily volume of 217,000 shares. It charges investors 70 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Solar ETF Hits New 52-Week High).
VanEck Vectors Junior Gold Miners ETF (GDXJ - Free Report)
Gold gained last week on renewed appeal for safe havens as Trump’s further sanctions on Iran and China reportedly cut short trade negotiations with the United States. Being a leveraged play on the underlying metal prices, metal miners experience more gains than their bullion cousins in a rising metal market. GDXJ is a small-cap centric ETF that tracks the MVIS Global Junior Gold Miners Index. Holding 72 stocks in its basket, Canadian firms dominate the fund’s portfolio at 48.5%, while Australia (21.9%) and South Africa (10.2%) round out the top three. The product has AUM of $4.4 billion and charges 53 bps in annual fees. It trades in heavy volume of more than 16.5 million shares a day on average and gained 8.2% last week.
United States Gasoline ETF (UGA - Free Report)
The jump in crude oil prices also pushed gasoline price higher. The fund provides investors with exposure to front-month gasoline futures, tracking RBOB gasoline for delivery to the New York harbor, which is traded on NYMEX. The ETF is illiquid with daily trading volume of about 24,000, suggesting that investors have to pay extra beyond the annual fee of 75 bps per year. The fund has managed assets of $33.7 million and increased 7.6% last week (read: Gasoline ETF Spikes After Saudi Oil Attack).
Worst ETFs
ETFMG Alternative Harvest ETF (MJ - Free Report)
This is the first ETF focusing on the cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. The fund holds 40 securities in its basket with Canadian firms making up 57.1% of the portfolio, while American firms comprise 26.8%. The ETF has AUM of $874.9 million and trades in a solid volume of around 527,000 shares. It charges 75 basis points in annual fees and shed 8% last week (read: One More Marijuana ETF on the Block).
Amplify Online Retail ETF (IBUY - Free Report)
This ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund comprises 40 stocks and has attracted $250.8 million in its asset base. It charges 65 bps in fees per year and trades in average daily volume of 42,000 shares. IBUY was down 5.7% last week (read: ETFs & Stocks to Make the Most of Back-to-School Shopping).
Breakwave Dry Bulk Shipping ETF (BDRY - Free Report)
Freight movement has been uncertain given fundamental and sentimental shifts. As a result, BDRY lost 5.2% last week. It is an actively managed ETF that seeks to provide exposure to daily changes in the price of dry bulk freight futures by tracking the performance of a portfolio consisting of a three-month strip of the nearest calendar quarter of futures contracts on specified indexes that measure rates for shipping dry bulk freight. The fund has accumulated about $2 million in AUM. It trades in a paltry volume of about 7,000 shares per day on average and charges a higher annual fee of 1.85% (see: all the Industrial ETFs here).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>