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The U.S. stock market is on a persistent decline after entering into the bear market with the coronavirus pandemic weighing heavily on the economy. The malaise has resulted in lockdowns and forced people to stay indoors to contain the spread of COVID-19, putting the economies of many nations at risk.
Layoffs are surging as businesses scale back or temporarily shut down their operations. State unemployment offices are reporting an unprecedented spike in initial jobless claims. Spending — the engine of the U.S. economy — is collapsing like anything. Amid mass closures of private businesses, soaring layoffs and school shutdowns, market participants forecast global recession in the coming quarters (read: Coronavirus Panic to Send Economy Into Recession: ETF Picks).
Even a slew of stimulus measures by the government and the central banks globally failed to revive investors’ confidence in the economy and the stock market. Notably, the major U.S. stock indices suffered their biggest weekly decline since the 2008 financial crisis. The Dow Jones plunged 17.3% last week while the S&P 500 plunged 15%. Meanwhile, the Dow Jones tumbled 12.6%.
Given this, we have highlighted last week’s best- and worst-performing ETFs:
Best ETFs
VelocityShares Daily Long VIX Short-Term ETN
As the stock market is witnessing huge volatility, volatility products were the biggest gainers. In particular, VIIX has jumped 41.9%. It seeks to deliver the daily performance of the S&P 500 VIX Short-Term Futures Index, which provides investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve. This ETN is unpopular and illiquid with AUM of $77.6 million and average daily volume of 59,000 shares. The note charges 89 bps in annual fees (read: Are You Expecting More Selloff? Play Volatility ETFs).
iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report)
Silver is regarded as a store of wealth and an alternative investment to risky assets during economic and political uncertainty. SLVP offers exposure to companies that derive the majority of their revenues from silver exploration or metals mining and tracks the MSCI ACWI Select Silver Miners Investable Market Index. It holds 28 stocks in its basket and has accumulated $63.8 million in its asset base. The product charges 39 bps in annual fees and trades in average daily volume of 108,000 shares. SLVP is up 14.2% last week.
This ETF adds alpha to an investment portfolio, especially during a bear market. DWSH is an actively managed ETF that short sells U.S. large-cap securities with the highest relative weakness within an investment universe primarily comprising large-capitalization U.S.-traded equities. It holds 100 stocks in its basket and charges higher annual fee of 3.07%. The product trades in moderate average daily volume of 95,000 shares and has accumulated $114.3 million in its asset base. It has gained nearly 12.1% last week (read: 5 ETFs in Green Despite the Coronavirus-Driven Sell-Off).
Worst ETFs
VanEck Vectors Mortgage REIT Income ETF (MORT)
Mortgage REITs are suffering due to large declines in prices with MORT declining 40.3% last week. This ETF offers exposure to the U.S. mortgage real estate investment trusts by tracking the MVIS US Mortgage REITs Index. It holds 25 stocks in its basket while charges 42 bps in annual fees. The fund trades in average daily volume of 79,000 shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
The travel bans and the resultant drop in near-term demand has hurt the airline sector badly. In addition, the wave of cancellations of major events and conferences is a concern. JETs, which offers investors access to the global airline industry, including airline operators and manufacturers from all over the world, plunged nearly 31.4% last week. In total, the product holds 34 securities and charges 60 bps in annual fees. It has gathered $188.2 million in its asset base and sees moderate trading volume of nearly 238,000 shares a day. It has a Zacks ETF Rank #3 with a High risk outlook (read: Airline ETF & Stocks at Risk as Coronavirus Hits Air Travel).
The crash in crude oil price has pushed gasoline price lower. 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 30,000, suggesting that investors have to pay extra beyond the annual fee of 75 bps per year. The fund has managed assets of $17.8 million and shed 31% last week.
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Best and Worst ETFs of Last Week
The U.S. stock market is on a persistent decline after entering into the bear market with the coronavirus pandemic weighing heavily on the economy. The malaise has resulted in lockdowns and forced people to stay indoors to contain the spread of COVID-19, putting the economies of many nations at risk.
Layoffs are surging as businesses scale back or temporarily shut down their operations. State unemployment offices are reporting an unprecedented spike in initial jobless claims. Spending — the engine of the U.S. economy — is collapsing like anything. Amid mass closures of private businesses, soaring layoffs and school shutdowns, market participants forecast global recession in the coming quarters (read: Coronavirus Panic to Send Economy Into Recession: ETF Picks).
Even a slew of stimulus measures by the government and the central banks globally failed to revive investors’ confidence in the economy and the stock market. Notably, the major U.S. stock indices suffered their biggest weekly decline since the 2008 financial crisis. The Dow Jones plunged 17.3% last week while the S&P 500 plunged 15%. Meanwhile, the Dow Jones tumbled 12.6%.
Given this, we have highlighted last week’s best- and worst-performing ETFs:
Best ETFs
VelocityShares Daily Long VIX Short-Term ETN
As the stock market is witnessing huge volatility, volatility products were the biggest gainers. In particular, VIIX has jumped 41.9%. It seeks to deliver the daily performance of the S&P 500 VIX Short-Term Futures Index, which provides investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve. This ETN is unpopular and illiquid with AUM of $77.6 million and average daily volume of 59,000 shares. The note charges 89 bps in annual fees (read: Are You Expecting More Selloff? Play Volatility ETFs).
iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report)
Silver is regarded as a store of wealth and an alternative investment to risky assets during economic and political uncertainty. SLVP offers exposure to companies that derive the majority of their revenues from silver exploration or metals mining and tracks the MSCI ACWI Select Silver Miners Investable Market Index. It holds 28 stocks in its basket and has accumulated $63.8 million in its asset base. The product charges 39 bps in annual fees and trades in average daily volume of 108,000 shares. SLVP is up 14.2% last week.
AdvisorShares Dorsey Wright Short ETF (DWSH - Free Report)
This ETF adds alpha to an investment portfolio, especially during a bear market. DWSH is an actively managed ETF that short sells U.S. large-cap securities with the highest relative weakness within an investment universe primarily comprising large-capitalization U.S.-traded equities. It holds 100 stocks in its basket and charges higher annual fee of 3.07%. The product trades in moderate average daily volume of 95,000 shares and has accumulated $114.3 million in its asset base. It has gained nearly 12.1% last week (read: 5 ETFs in Green Despite the Coronavirus-Driven Sell-Off).
Worst ETFs
VanEck Vectors Mortgage REIT Income ETF (MORT)
Mortgage REITs are suffering due to large declines in prices with MORT declining 40.3% last week. This ETF offers exposure to the U.S. mortgage real estate investment trusts by tracking the MVIS US Mortgage REITs Index. It holds 25 stocks in its basket while charges 42 bps in annual fees. The fund trades in average daily volume of 79,000 shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
U.S. Global Jets ETF (JETS - Free Report)
The travel bans and the resultant drop in near-term demand has hurt the airline sector badly. In addition, the wave of cancellations of major events and conferences is a concern. JETs, which offers investors access to the global airline industry, including airline operators and manufacturers from all over the world, plunged nearly 31.4% last week. In total, the product holds 34 securities and charges 60 bps in annual fees. It has gathered $188.2 million in its asset base and sees moderate trading volume of nearly 238,000 shares a day. It has a Zacks ETF Rank #3 with a High risk outlook (read: Airline ETF & Stocks at Risk as Coronavirus Hits Air Travel).
United States Gasoline ETF (UGA - Free Report)
The crash in crude oil price has pushed gasoline price lower. 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 30,000, suggesting that investors have to pay extra beyond the annual fee of 75 bps per year. The fund has managed assets of $17.8 million and shed 31% last week.
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 >>