Last week was downbeat for Wall Street with the S&P 500 losing about 2.9%, the Nasdaq shedding about 1.9% and the Dow Jones retreating 3.3%. In fact, on Jun 24, Wall Street logged its worst dailyand percentage decline since Jun 11, according to Dow Jones Market Data.
The reason behind the market drop was the rise in coronavirus cases with easing lockdown measures. New York, New Jersey and Connecticut announced 14-day quarantine on Jun 24 on visitors from states with high COVID-19 infection rates. Texas and Florida were forced to reverse reopening their states as coronavirus cases rose further.
U.S. states witnessed a single-day record rise of 37,000 in infections on Jun 25, led by Florida, Texas, California and Arizona, surpassing the 36,188 level from Apr 24, according to analysis of data from Bloomberg, quoted on MarketWatch.
Meanwhile, Chicago Fed President Charles Evans said the U.S. economy may be in need for more monetary stimulus, due to low inflation, which is posing risks of further weakness. Bank stocks were on a roller coaster ride. On Jun 25, financial regulators announced that they would ease the financial-crisis era Volcker Rule. While the news was positive for bank stocks, Fed’s stress test went against the sector.
The Fed capped bank dividend payments and halted share-buybacks for the third quarter. Notably, the annual stress test found that several banks could get uncomfortably close to minimum capital levels amid the pandemic.
Against this backdrop, below we highlight a few ETF areas that topped last week. These ETFs came from the defensive investing areas, the all-important biotechnology sector (which is thriving amid the ongoing medical emergency) and the gold and silver mining industry. Since gold acts as a safe-haven asset, the related mining stocks have been on a tear.
Principal International Multi-Factor Core Index ETF PDEV – Up 12.4%
The underlying Nasdaq Developed Select Leaders Core Index uses a quantitative model designed to identify equity securities of companies on the Nasdaq Developed Market Ex-US Ex-Korea Large Mid Cap Index that exhibit potential for high degrees of sustainable shareholder value, growth and strong momentum. It charges 25 bps in fees.
First Trust Alternative Absolute Return Strategy ETF FAAR – Up 8.6%
This ETF is active and does not track a benchmark. The First Trust Alternative Absolute Return Strategy ETF seeks to achieve long-term total return using a long/short commodities strategy. It charges 95 bps in fees.
AdvisorShares Dorsey Wright Short ETF DWSH – Up 8.4%
This ETF is active and does not track a benchmark. The AdvisorShares Dorsey Wright Short ETF is actively managed with an investment focus that involves buying securities that have appreciated in price more than the other securities in the investment universe and holding those securities until they underperform.
Global X MSCI China Information Technology ETF CHIK – Up 8.4%
The underlying MSCI China Information Technology 10/50 Index tracks the performance of companies in the information technology sector in the MSCI China Index. It charges 66 bps in fees.
ETFMG Treatments Testing & Advancements ETF GERM – Up 7.2%
The fund follows the Testing and Advancements Index, which provides investors with a reference measure that enables them to track both event-driven news and long-term trends of companies engaged in developing treatments and vaccines, or diagnostic technology, in the fight against infectious diseases. It charges 68 bps in fees.
Sprott Junior Gold Miners ETF (NYSE:GDX) SGDJ – Up 5.9%
The underlying Solactive Junior Gold Miners Custom Factors Index aims to track the performance of small-capitalization gold companies. It charges 50 bps in fees (read: Silver Beat Gold ETFs Past Month: Here's Why).
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First Trust Alternative Absolute Return Strategy ETF (FAAR): ETF Research Reports
Sprott Junior Gold Miners ETF (SGDJ): ETF Research Reports
AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports
Global X MSCI China Information Technology ETF (CHIK): ETF Research Reports
Principal International MultiFactor Core Index ETF (PDEV): ETF Research Reports
ETFMGTR TST AD (GERM): ETF Research Reports
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Zacks Investment Research
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