Last week was extremely meaningful for Wall Street as U.S. stocks recorded the largest one-day decline on Jun 11 since Mar 16.Key U.S. indexes fell in the range of 5% to 6.9% on that day, taking the weekly return to the red territory. Overall, the S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 added 4.8%, 5.6%, 1.6%, and 7.9% last week, respectively.
Despite the acute coronavirus scare and global lockdowns, Wall Street ripped higher on the unprecedented U.S. central bank and government stimulus in recent times. However, the stupendous rally hit a bump as another 1.542 million Americans claimed unemployment benefits amid the COVID-19 crisis. Signs of rising coronavirus cases with easing lockdowns and the Fed’s cautious outlook for the economy also played foul.
The Fed now expects the U.S. unemployment rate to hit 9.3% this year, drop to 6.5% in 2021 and decline further to 5.5% in 2022. The unemployment rate in May dropped to 13.3% from 14.7% in April. Before the pandemic, the U.S. unemployment rate was hovering near the 50-year lows of around 3.6%. The Fed sees American GDP falling 6.5% in 2020 before rising 5.0% in 2021 and 3.5% in 2022. The projections and Fed comments hint that the coronavirus-led economic crisis is far from over.
No wonder, safe-haven assets like U.S. treasuries and gold gained last week. Risky assets like equities were clear under-performers. Still, there are some hidden gems that managed to stay in the green territory last week. Below we highlight a few of those ETFs.
ProShares Long Online/Short Stores ETF CLIX – Up 3.4%
The underlying ProShares Long Online/Short Stores Index consists of long positions in online retailers included on the ProShares Online Retail Index and short positions in the bricks and mortar retailers on the Solactive-ProShares Bricks and Mortar Retail Store Index. The fund charges 65 bps in fees (read: E-Commerce ETFs Surge Amid COVID-19 Crisis).
Pacer Cash Cows Fund Of Funds ETF HERD – Up 1.86%
The Pacer Cash Cows Fund of Funds Index uses an objective, rules-based approach to construct a portfolio that is composed of the ETFs that seeks to provide exposure to companies with high free cash flow yields. The fund invests in ETFs like COWZ, CALF, BUL, GCOW and ICOW.
Global X Video Games Esports ETF HERO – Up 1.78%
The underlying Solactive Video Games & Esports Index seeks to provide exposure to companies positioned to benefit from increased consumption related to video games & esports, including companies whose principal business is in video game development/publishing, video game & esports content distribution & streaming, operating/owning esports leagues/teams & producing video game/esports hardware (read: Videogame ETFs Surge Amid Coronavirus Crisis).
KraneShares MSCI All China Health Care Index ETF KURE – Up 1.78%
The underlying MSCI China All Shares Health Care 10/40 Index is a free-float-adjusted, market-capitalization weighted index designed to track the equity market performance of Chinese companies engaged in the health care sector. It charges 65 bps in fees.
iShares MSCI Global Gold Miners ETF (NYSE:GDX) RING – Up 1.13%
The fund gives exposure to companies that derive the majority of their revenues from gold mining. It charges 39 bps in fees.
VanEck Vectors Video Gaming & eSports ETF ESPO – Up 0.89%
The fund follows an index, which consists of video gaming and eSports companies and may include small- and medium-capitalization companies, and foreign and emerging market issuers. The fund charges 55 bps in fees.
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Global X Video Games Esports ETF (HERO): ETF Research Reports
iShares MSCI Global Gold Miners ETF (RING): ETF Research Reports
ProShares Long OnlineShort Stores ETF (CLIX): ETF Research Reports
VanEck Vectors Video Gaming and eSports ETF (ESPO): ETF Research Reports
KraneShares MSCI All China Health Care Index ETF (KURE): ETF Research Reports
Pacer Cash Cows Fund of Funds ETF (HERD): ETF Research Reports
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