Wall Street was downbeat last week with the S&P 500, the Dow Jones and the Nasdaq losing about 2.3%, 2.4% and 1.66%, respectively. Fears of a second wave of virus contagion amid reopening of economies weighed on the markets. However, the markets gained at the end of the week on higher risk-on sentiments.
Against this backdrop, below we highlight a few ETF areas that won big time last week.
Barclays Inverse U.S. Treasury Composite ETN (TAPR - Free Report) ) – Up 33.5%
TAPR’s index uses an equal-weighting scheme for short positions in a variety of US Treasury futures contracts: 2-year, 5-year, 10-year, long-bond, and ultra-long. The note will gain in value if prices of Treasuries fall (and rates rise) across the yield curve.
ETFMG Prime Junior Silver Miners ETF (SILJ - Free Report) ) – Up 8.5%
Both gold and silver were strong last week, but silver recorded bigger gains than gold. Silver is also often considered as an industrial metal. So, the reopening of economies may be helping silver more than the yellow metal as reopening means pickup in industrial activities.
Credit Suisse S&P MLP Index ETN (MLPO - Free Report) ) – Up 7.8%
Oil prices recovered in recent trading on reopening of economies. This boosted various corners of the energy space. The high-yielding MLP space was one of the beneficiaries. It yields as high as 11.78% annually.
Gold Explorers ETF (GOEX - Free Report) ) – Up 7.6%
The fund provides investors access to a broad range of companies involved in the exploration of gold deposits. The Fed’s super-dovish stance since March and the resultant moderate strength in the greenback, a mammoth government stimulus, uptick in investor sentiment, lower oil prices, cheaper valuation and relatively low debt of mining companies facilitated this spectacular performance (read: Gold Mining Q1 Earnings Mixed: ETFs Gain on Fundamentals).
Invesco DWA Healthcare Momentum ETF (PTH - Free Report) – Up 7.3%
The underlying DWA Healthcare Technical Leaders Index identifies companies that are showing relative strength and are composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on U.S. exchanges.
Healthcare and biotech stocks and ETFs soared last week. Large pharma and biotech companies are working on medicines, vaccines and testing kits. Last week, Novavax (NVAX - Free Report) received the largest-ever investment from Coalition for Epidemic Preparedness Innovations (CEPI), a global coalition supporting COVID-19 vaccine development. As a result, the stock gained. The Novavax stock takes about 3.60% of the fund PTH.
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