We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Markets Brave Coronavirus Second Wave: 5 Best ETFs of Last Week
Read MoreHide Full Article
Last week was moderate for the stock market despite rising coronavirus cases. Notably, states like Arizona, Florida, Texas, California and South Carolina have seen a considerable rise in new cases. Still, upbeat economic data points and further Fed support kept Wall Street going. SPDR S&P 500 ETF Trust (SPY - Free Report) , SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) and Invesco QQQ Trust (QQQ - Free Report) added about 1.9%, 1.04% and 22.4%, respectively (as of Jun 19, 2020).
The Fed announced at the start of the week that it would begin purchasing $250 billion in individual corporate bonds as part of its emergency lending program to inject liquidity into the ailing economy. The move is part of the Fed’s secondary market corporate credit facility. Notably, a flood of liquidity in the form of fiscal and economic stimulus sparked a remarkable rally in the stock market since the lows reached in late-March.
Retail sales in the United States surged 17.7% sequentially in May as the coronavirus-led lockdown eased, breezing past forecasts of an 8% jump and after a record 14.7% slump in April. This marked the biggest rise on record in retail sales. Most of the sectors that were the biggest laggards in April staged a rebound in May.
Housing starts jumped 4.3% to a seasonally adjusted annual rate of 974,000 units in May per a National Association of Home Builders (NAHB) press release. The metric compared quite favorably with the decline of 26.4% in April and 19% in March. On a year-over-year basis, housing starts were down 23.2% in May (read: Are Housing ETFs Recovering From Coronavirus Injuries? Let's See).
Tech-heavy Nasdaq remained strong on fears of a second wave of coronavirus that charged up stay-at-home tech stocks. Moreover, big tech companies are now eyeing the virus-testing & tracing business (read: Big Techs Making the Most of Medical Emergency: ETFs to Win).
Verily Life Sciences, a sister company of Google, is now launching a health screening and analytics service for businesses trying to safely reopen during the pandemic. Microsoft (MSFT - Free Report) recently stated that it has expanded its network and data center capacity to meet growing demand for cloud services amid the ongoing coronavirus pandemic.
Oil prices too remained decent on output cut initiatives in the form of the OPEC+ agreement and the meeting of G20 energy ministers. The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, have been cutting output by a record 9.7 million barrels per day (bpd) or 10% of global supply since May 1.
Against this backdrop, below we highlight a few top-performing leveraged ETFs of last week.
Credit Suisse SP MLP Index ETN – Up 46.1%
The underlying S&P MLP Index includes both master limited partnerships and publicly traded limited liability companies which have a similar legal structure to MLPs and share the same tax benefits as MLPs. It charges 95 bps in fees.
The underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight. The expense ratio of the fund is 1.85%.
United States Gasoline ETF (UGA - Free Report) ) – Up 11.6%
The underlying Gasonline Price Index looks to reflect the changes of the price of gasoline, as measured by the price of the contract on unleaded gasoline for delivery to the New York harbor, traded on the NYMEX that is the near month to expire, except when the near contract is within two weeks of expiration, in which case it will be measured by the contract that is the next month contract to expire. The fund charges 75 bps in fees.
Invesco DWA Healthcare Momentum ETF (PTH - Free Report) ) – Up 11.0%
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. It charges 60 bps in fees.
The underlying Renaissance IPO Index is a portfolio of newly U.S.-listed initial public offerings of companies whose unseasoned equities are under-represented in core U.S. equity indices. IPOs that meet liquidity & operational screens are included on the index at the end of the fifth day of trading, or upon quarterly reviews, weighted by tradable float, capped at 10% and removed after two years. It charges 60 bps in fees.
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Markets Brave Coronavirus Second Wave: 5 Best ETFs of Last Week
Last week was moderate for the stock market despite rising coronavirus cases. Notably, states like Arizona, Florida, Texas, California and South Carolina have seen a considerable rise in new cases. Still, upbeat economic data points and further Fed support kept Wall Street going. SPDR S&P 500 ETF Trust (SPY - Free Report) , SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) and Invesco QQQ Trust (QQQ - Free Report) added about 1.9%, 1.04% and 22.4%, respectively (as of Jun 19, 2020).
The Fed announced at the start of the week that it would begin purchasing $250 billion in individual corporate bonds as part of its emergency lending program to inject liquidity into the ailing economy. The move is part of the Fed’s secondary market corporate credit facility. Notably, a flood of liquidity in the form of fiscal and economic stimulus sparked a remarkable rally in the stock market since the lows reached in late-March.
Retail sales in the United States surged 17.7% sequentially in May as the coronavirus-led lockdown eased, breezing past forecasts of an 8% jump and after a record 14.7% slump in April. This marked the biggest rise on record in retail sales. Most of the sectors that were the biggest laggards in April staged a rebound in May.
Housing starts jumped 4.3% to a seasonally adjusted annual rate of 974,000 units in May per a National Association of Home Builders (NAHB) press release. The metric compared quite favorably with the decline of 26.4% in April and 19% in March. On a year-over-year basis, housing starts were down 23.2% in May (read: Are Housing ETFs Recovering From Coronavirus Injuries? Let's See).
Tech-heavy Nasdaq remained strong on fears of a second wave of coronavirus that charged up stay-at-home tech stocks. Moreover, big tech companies are now eyeing the virus-testing & tracing business (read: Big Techs Making the Most of Medical Emergency: ETFs to Win).
Verily Life Sciences, a sister company of Google, is now launching a health screening and analytics service for businesses trying to safely reopen during the pandemic. Microsoft (MSFT - Free Report) recently stated that it has expanded its network and data center capacity to meet growing demand for cloud services amid the ongoing coronavirus pandemic.
Oil prices too remained decent on output cut initiatives in the form of the OPEC+ agreement and the meeting of G20 energy ministers. The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, have been cutting output by a record 9.7 million barrels per day (bpd) or 10% of global supply since May 1.
Against this backdrop, below we highlight a few top-performing leveraged ETFs of last week.
Credit Suisse SP MLP Index ETN – Up 46.1%
The underlying S&P MLP Index includes both master limited partnerships and publicly traded limited liability companies which have a similar legal structure to MLPs and share the same tax benefits as MLPs. It charges 95 bps in fees.
Breakwave Dry Bulk Shipping ETF (BDRY - Free Report) ) – Up 14.4%
The underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight. The expense ratio of the fund is 1.85%.
United States Gasoline ETF (UGA - Free Report) ) – Up 11.6%
The underlying Gasonline Price Index looks to reflect the changes of the price of gasoline, as measured by the price of the contract on unleaded gasoline for delivery to the New York harbor, traded on the NYMEX that is the near month to expire, except when the near contract is within two weeks of expiration, in which case it will be measured by the contract that is the next month contract to expire. The fund charges 75 bps in fees.
Invesco DWA Healthcare Momentum ETF (PTH - Free Report) ) – Up 11.0%
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. It charges 60 bps in fees.
Renaissance IPO ETF (IPO - Free Report) ) – Up 10.5%
The underlying Renaissance IPO Index is a portfolio of newly U.S.-listed initial public offerings of companies whose unseasoned equities are under-represented in core U.S. equity indices. IPOs that meet liquidity & operational screens are included on the index at the end of the fifth day of trading, or upon quarterly reviews, weighted by tradable float, capped at 10% and removed after two years. It charges 60 bps in fees.
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 >>