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Top and Flop ETFs of Last Week

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Last week was marked by high levels of volatility. This is especially true as the Nasdaq Composite reached new all-time highs topping the 10,000 level for the first time on Wednesday, while it tumbled 5.3% on Thursday in a broad market sell-off.

The rally early in the week came on optimism over accelerating economic activities as many states reopened. A booming technology sector, an unprecedented stimulus from the central bank and the government, and hopes of a potential coronavirus vaccine were the biggest catalysts in driving the stocks higher.

Renewed concerns over a second wave of coronavirus infections and Federal Reserve’s dim outlook in the latest FOMC meeting made investors’ jittery at the end of the week. Most notably, Texas reported 2,504 new coronavirus cases, the highest one-day total since the pandemic emerged. A month into its reopening, Florida reported 8,553 new cases — the maximum in any seven-day period — and California reported the highest number of hospitalizations since May 13 that have risen in nine of the past 10 days (read: 5 Big ETF Winners Amid Worst Market Crash Since March).

The central bank warned that the U.S. economy will contract by 6.5% in 2020 before rebounding 5% next year. It predicts that the unemployment rate will fall to 9.3% by the end of this year. Though this is down from 13.3% in May, it will be substantially above the 3.5% rate recorded in February — a near 50-year low.

For the week, the Dow plunged 5.6% while the S&P 500 tumbled 4.8%. The Nasdaq shed 2.3%, the biggest weekly percentage decline for the indexes since the week ended Mar 20.

Given the bull and bear tug of war, market volatility is back in the market. As such, we have highlighted the best and worst-performing ETFs of last week:

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 33.1%. 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 $56.9 million and average daily volume of 69,000 shares. The note charges 89 bps in annual fees.

AGFiQ US Market Neutral Momentum Fund

This ETF provides exposure to the “momentum” factor by investing long in U.S. equities that have had above-average total returns and shorting those securities that have had below-average total returns. It follows the Dow Jones U.S. Thematic Market Neutral Momentum Index, charging investors 87 bps in annual fees. The product has accumulated $5.4 million in its asset base while trading in average daily volume of 9,000 shares. It has gained 9.7% in a week (read: 5 ETFs for Protection From Market Crash).

AdvisorShares Dorsey Wright Short ETF (DWSH - Free Report)

This 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 with consumer discretionary taking the largest share at 22.8% while energy and healthcare round off the next two spots. The product trades in lower average daily volume of 236,000 shares and has accumulated $90.3 million in its asset base. It charges higher annual fee of 3.07% and gained 12.1% last week.

Worst ETFs

InfraCap MLP ETF (AMZA - Free Report)

This is an actively managed ETF providing exposure to midstream master limited partnerships (MLPs) with an emphasis on high current income. Holding 44 stocks in its basket, the fund is unpopular and illiquid in the MLP space with AUM of $126.8 million and average daily volume of 114,000 shares. The product has higher expense ratio of 2.41% and tumbled 16.7% last week (read: 4 ETF Areas Up At Least 20% in May).

Invesco S&P SmallCap Industrials ETF (PSCI - Free Report)

This product follows the S&P SmallCap 600 Capped Industrials Index, which measures the performance of companies engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense, and general manufacturing. The product has a basket of 96 securities with an expense ratio of 0.29%. It has AUM of $36.7 million while trading in a lower volume of 6,000 shares. It has a Zacks ETF Rank #4 (Sell) with a High risk outlook and has plunged 12.8%.

First Trust NASDAQ ABA Community Bank Index Fund (QABA - Free Report)

This ETF offers exposure to banks and thrifts, and tracks the NASDAQ OMX ABA Community Bank Index, holding 164 stocks in its basket. It is well spread out across various components as none accounts for more than 4.12% of assets. The fund has accumulated $67.2 million in its asset base and charges 60 bps in annual fees. It trades in volume of 19,000 shares a day on average and has a Zacks ETF Rank #4 with a High risk outlook. QABA shed 12% last week.

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