Top Performing Levered/Inverse ETFs Last WeekThese were last week’s top performing leveraged and inverse ETFs. TSLL – Direxion Daily TSLA Bull 1.5X Shares ETFTSLL which provides 1.5x leveraged exposure to the daily price movement for shares of Tesla stock ranked second on the list with ~13% returns in the last week. KOLD – ProShares UltraShort Bloomberg Natural GasKOLD, which offers 2x daily inverse leveraged exposure to natural gas, featured on the list of top performing levered/ inverse ETFs returning ~13% last week, as natural gas prices continued to fall amid a warmer-than-expected winter. FNGU – MicroSectors FANG+™ Index 3X Leveraged ETNFNGU was also on the list of top-performing levered ETFs with over ~7% weekly returns. AWYX – ETFMG 2X Daily Travel Tech ETFAWYX which provides 2x leveraged daily exposure to an index of global travel technology companies made it to the list following an overall rally in the technology sector.
US semiconductor ETFs boosted by Biden’s China tech sanctionsUS-focused semiconductor ETFs saw a short-term boost in performance last week after US President Joe Biden announced sweeping sanctions on China’s tech industry. Leading the way, the VanEck Semiconductor UCITS ETF (SMH) has returned 8.1% over the past week as investors eye a medium to long-term boost for the US semiconductor industry on the back of the sanctions. Out of the semiconductor ETFs in Europe, SMH has the largest allocation to US companies which total more than 75% of the portfolio. SMH’s closest rival, the iShares MSCI Global Semiconductors UCITS ETF (SEMI) returned 5.5% over the same period, followed by the HSBC Nasdaq Global Semiconductor UCITS ETF (HNSC) at 4.4% and Lyxor MSCI Semiconductors ESG Filtered UCITS ETF (SEMG) at 3.7%. The short-term boost follows a year of dismal performance for semiconductor ETFs, with SMH, SEMI and SEMG returning -41.9%, -42.1% and -45.4% so far this year, as at 24 October.3 months ago ETF Stream
What ‘level 2’ SFDR requirements mean for ETF investorsAsset managers have a race against time to ensure they are ready for the next phase of SFDR, but what will be the impact of the new requirements and how should ETF investors interpret these? Despite this, asset managers are having to grapple with ambiguous and ever-changing definitions within SFDR and the EU Taxonomy, which aims to clarify what investments are environmentally sustainable. Now, with the level 2 requirements impending, what will the changes mean for ETF investors? Given the alphabet soup of the regulatory landscape, investors need to know how to slice through the uncertainty and whether asset managers interpret the regulation as they and their clients do. “Currently, not all asset managers are reporting their SFDR considerations,” Bioy said.3 months ago ETF Stream
The Fed’s median dot plot projection points to a 5.1% terminal rate in 2023, implying three additional 25 bps hikes for the year. This, combined with a probable recession in 2023, make bonds seem attractive and favor the asset class to outperform. Including Alternatives in PortfoliosA hypothetical 60% S&P 500 Index / 40% Bloomberg US Aggregate Bond Index portfolio returned approximately -17% in 2022, marking its second-worst year on record since 1976. Moreover, here are three things to remember in 2023: 1) The consensus usually doesn’t pan out. There will be an economic recession, an earnings recession, and the Fed will cut rates in the second half of 2023.1 month ago ETF Trends
VettaFi contributor Dan Mika spoke with Todd Hultman, lead analyst at agricultural data provider DTN, for an outlook on the world’s agricultural price action. So looking into 2023, how much is that conflict weighing on the price movement of wheat and other agricultural products? From my perspective, it’s still a very dangerous situation for wheat production in the Black Sea. Our domestic oil production has increased in the past year from 11.8 million barrels a day to roughly 12.1 million. If you can’t keep oil prices down, it’s very difficult for anything on the monetary side to keep prices down.29 days ago ETF Trends
This month, FDX enters the BUZZ Index as the largest new entrant with a 1.89% weight, its highest ever weight within the BUZZ Index. BUZZ NextGen AI US Sentiment Leaders Index (the “BUZZ Index”) is a product of BUZZ Holdings ULC (“BUZZ Holdings”), and has been licensed to Van Eck Associates Corporation for use in connection with the VanEck Social Sentiment ETF. “BUZZ” is a trademark of BUZZ Holdings, which has been licensed by Van Eck Associates Corporation for use in connection with the BUZZ Index. BUZZ Holdings’ only relationship to Van Eck Associates Corporation with respect to the BUZZ Index is the licensing of the BUZZ Index and certain trademarks of BUZZ Holdings. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN BUZZ HOLDINGS AND Van Eck Associates Corporation, OTHER THAN THE LICENSORS OF BUZZ HOLDINGS.3 months ago ETF Trends
That interest has also elicited “diametrically opposed” views from Goldman Sachs and Morgan Stanley as to whether EM equities will continue to decline or are now bargain buys, prompting investors to consider EM equities ETFs. Emerging markets equities have had a dismal year due to inflation, geopolitical risks, and energy costs, seeing the MSCI Emerging Markets Index return -27.2% YTD compared to just -2.1% over the last three years. Goldman Sachs analysts believe that while EM equities are to rise 15% over the next year based on the MSCI EM Index, the floor is still unclear. Morgan Stanley’s analysts disagree, arguing the floor has been reached and the only way is up, with a similar price projection for the MSCI EM Index. Investors looking to revisit their equities holdings may want to revisit EM equities ETFs, with some bearish and other bullish.3 months ago ETF Trends
The fund’s introduction was one of many firsts—the most impactful being the first exchange-traded fund (ETF) linked to Bitcoin. Ultimately, this has been a win for BITO despite what the crypto market has been doing for most of the year. Any prospective investors worrying about whether a Bitcoin futures ETF can mimic the cryptocurrency’s price only need to look at the juxtaposed year-to-date chart of both assets. “Instead, it was the behavior of the bitcoin futures market that drove BITO’s close tracking to spot bitcoin,” ProShares noted. Spot Bitcoin ETF products have been trying to penetrate the marketplace, but to no avail—at least, it seems, in 2022.3 months ago ETF Trends