Nasdaq ETFs

Over the next few weeks, a steady stream of second-quarter earnings reports will reveal how companies have navigated historically high inflation, continued supply chain challenges, and shifts in consumer spending from goods to services. Perhaps more important – those companies may offer guidance on their outlook for these and other key concerns for the rest [...] Read more at ETFtrends.com.

Financial technology stocks and sector-related exchange traded funds have taken a beating as the risk of a recession and the sell-off in the growth style weighed on the nascent industry. However, some continue to maintain their long-term outlook on a potentially oversold market segment. Year-to-date, the ARK Fintech Innovation ETF (ARKF) declined 60.2% and the [...] Read more at ETFtrends.com.

As the energy crisis in Europe intensifies and threatens to derail the region’s economy, traders can turn to a bearish or inverse exchange traded fund strategy to hedge against further weakness in the Eurozone markets. Russia’s Gazprom warned its customers in Europe that it cannot guarantee gas supplies due to “extraordinary” circumstances, Reuters reported. According [...] Read more at ETFtrends.com.

The Alerian Midstream Energy Select Index (AMEI), the underlying index for the Alerian Energy Infrastructure ETF (ENFR), fell by 13.19% in June as increased recession fears weighed on energy sentiment, while profit-taking into quarter-end and a pullback in commodity prices also contributed to the selloff, ALPS wrote in a recent insight. Energy equities, including midstream, [...] Read more at ETFtrends.com.

The Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD) was Invesco’s most popular equal-weight sector ETF last month, as measured by June net inflows.  The S&P 500 EWI outperformed the S&P 500 by 2% during Q2, continuing equal weight’s trailing 12-month relative outperformance, according to S&P Dow Jones Indices. Eight out of 11 equal-weight [...] Read more at ETFtrends.com.

Natural gas-related exchange traded funds climbed Monday as forecasts for hotter temperatures ahead helped fuel the electricity demand outlook for cooling. The United States Natural Gas Fund (UNG) rose 5.1% on Monday. Meanwhile, Nymex natural gas futures were up 5.2% to $7.38 per million British thermal units. While weather models over the weekend moderated slightly in [...] Read more at ETFtrends.com.

After pulling back significantly in recent days, crude oil and crude ETFs are surging higher on Monday, amid growing concerns over gas supply from Russia and a drop in the dollar, which is helping to overshadow demand worries related to a potential recession and China lockdowns related to the coronavirus. Brent crude futures for September [...] Read more at ETFtrends.com.

In a poll taken in June at Mercer’s Global Investment Forum U.S., asset managers and asset owners globally reported uncertainty about the direction the global economy is going, a sentiment that has been reflected in volatile markets for most of 2022. Over 350 asset owners and asset managers were polled, according to the press release, [...] Read more at ETFtrends.com.

Cryptocurrency industry-related exchange traded funds surged Monday after bitcoin rallied for a fourth consecutive day and broke back above $22,000 in a month. Among the best performing non-leveraged ETFs of Monday, the Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ) was up 9.3%, the Global X Blockchain ETF (BKCH) increased 12.6%, the VanEck Vectors Digital [...] Read more at ETFtrends.com.

Investing in emerging markets has seen many challenges this year, from the war in Ukraine to a strong U.S. dollar to regulatory crackdowns in China. Despite these headwinds, emerging markets fundamentals are in a good position, especially as higher commodity prices have improved the terms of trade for commodity-exporting countries. In fact, not only the [...] Read more at ETFtrends.com.

In talking about climate change, UN Secretary General António Guterres told leaders from 40 countries, “half of humanity is in the danger zone from floods, droughts, extreme storms, and wildfires. No nation is immune. Yet we continue to feed our fossil fuel addiction. We have a choice. Collective action or collective suicide. It is in [...] Read more at ETFtrends.com.

The Invesco Russell 1000 Equal Weight ETF is seeing unusually high volume in afternoon trading Monday, with over 1.4 million shares traded versus three month average volume of about 77,000. Shares of EQAL were up about 1% on the day.

While emerging markets are frequently volatile, and the recent headlines they’ve generated lately have often been negative, there’s still a lot going for the space — especially for long-term investors. The potential for steady income, access to companies with huge growth potential, and great prices. At Morningstar UK, Annalisa Esposito outlines the main reasons why [...] Read more at ETFtrends.com.

It’s the first full week of earnings reports as major banks continue to report their second quarter performance and economic outlook for the second half, having kicked off last week with mixed performances from Morgan Stanley and JPMorgan Chase. Major companies begin reporting this week and in a season of prolonged market volatility, earnings are [...] Read more at ETFtrends.com.

Shares of Unity Software traded down more than 17% last Wednesday. The decrease followed the San Francisco-based video game software developer announcing a $4.4 billion all-stock merger agreement with mobile app advertising and monetization platform, ironSource, ARK Invest wrote in a recent insight.  By midday Monday, the stock began its rebound and is up over [...] Read more at ETFtrends.com.

Assets in the active ETF market have grown to $302 billion as of June 30, which puts AUM within the sector on track to exceed $425 billion by the end of the year, according to the New York Stock Exchange. According to NYSE’s mid-year active ETF outlook, which lists the predictions it made at the [...] Read more at ETFtrends.com.

 With rising rates and market volatility, investors are currently in a challenging income-oriented environment. So, Harvest Volatility Management has partnered with Nationwide Financial to develop a suite of risk managed income ETFs to deliver an alternative source of income in such an environment. “As we all know, fixed income has been very challenged, equity [...] Read more at ETFtrends.com.

This was a strange week that first saw markets bet a historic 1% Fed rate hike after hotter-than-expected inflation data. US inflation jumped 9.1% in June in its biggest yearly increase in 40 years. They then offset part of their losses as Fed members said they would favour a 75-basis point hike at the July meeting. Better-than-expected retail sales also pushed the broad market higher Friday, but not enough to finish the week in positive territory.

The S&P 500 fell 0.93% (-18.95% year-to-date), the Dow Jones Industrial Average edged down 0.16% (-13.90% YTD), or 51 points. The Nasdaq was down 1.57% (-26.80% YTD).

European markets did not fare better. The MSCI EMU lost 1.12% (-19.56% YTD) while the FTSE slipped 0.56% (-3.05% YTD). Asian markets were mixed. The Shanghai Composite plunged 3.81% (-11.31% YTD), as the highly transmissible BA.5 Omicron variant is spreading rapidly, leading several cities to impose new restrictions. By contrast, Japan’s Nikkei outperformed its peers, notching a second straight week of gains (+1.02% week-over-week, -6.96% YTD).

Almost all the S&P sectors slid into the red      

The S&P consumer staples index was the only sector that managed to stay above the flatline (+0.11%). Other defensive sectors such as utilities (-0.16%) and real estate (-0.45%) were not far behind. Likewise, information technology did better than the broad market (-0.33%) against a backdrop of falling Treasury yields. Yet Microsoft fell 4.09% as the tech giant announced job cuts.

It was a tough week for energy stocks (-3.07%) after OPEC flagged fresh demand concerns. Nymex August WTI oil futures ended at $97.59 a barrel, down 6.87% over the week. Communication services (-3.26%) were also among the major decliners with Alphabet down 6.16%. The company initiated a 20-for-1 stock split after market close on Friday. Furthermore, it had said on Wednesday it would slow the pace of hiring for the rest of the year. 

Consumer discretionary (-1.04%) was weighed down by Tesla (-4.27%) though Elon Musk announced that he was terminating his $44 billion deal to buy Twitter. At the same time, AXS Investments, a California-based asset manager, launched eight single-stock leveraged ETFs on Thursday, including a bearish bet on Tesla stocks (TSLA). 

Financials also finished in negative territory (-0.90%). Citigroup delivered better-than-expected profit and revenue but its earnings still fell along with Wells Fargo & Co amid unfavourable market conditions. 

U.S. 10-year Treasury yield retreats as the Fed cools jumbo hike bets

The U.S. 10-year Treasury yield finished down 16 basis points from +3.08% to +2.92%. That’s why long-term government bond ETFs are among the week’s top 20 performers. The yield curve remains inverted with the 10-2 year spread at -0.20%. 

In Germany, the 10-year Bund yield tumbled from 1.35% to 1.13% as investors flocked to safer assets after Italian Prime Minister Mario Draghi resigned. Populist coalition partner Five Star indeed withdrew its support in a confidence vote. The Germany-Italy 10-year spread value topped -225 basis points.

Against this backdrop, investment grade corporate bonds closed higher (+0.54% in the U.S and +0.79% in Europe). High yield bonds were up +0.29% in Europe and +0.54% in the U.S. 

In contrast, emerging debt in local currencies plunged again (-1.57%) after the dollar index rose to its strongest since May 2002 (107.98). The euro hit parity with the U.S. dollar for the first time since 2002.

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In trading on Monday, the ARK Fintech Innovation ETF is outperforming other ETFs, up about 4.8% on the day. Components of that ETF showing particular strength include shares of Coinbase Global, up about 15.2% and shares of Silvergate Capital, up about 13.8% on the day.

Exchange-traded funds (ETFs) first came to market in the mid 1990s. In the thirty years that followed, the ETF sector experienced immense growth.