Efforts to integrate environmental, social, and governance (ESG) principles into corporate policies and investment decisions faced increasing pressure in 2022, with many investors demanding that companies deliver on their promises. The number of climate-related lawsuits against companies for a lack of or inadequate action has been going up. In addition to being scrutinized more for [...]
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In trading on Monday, shares of the FTEC ETF (Symbol: FTEC) crossed above their 200 day moving average of $101.78, changing hands as high as $102.85 per share. FTEC shares are currently trading up about 2% on the day. The chart below shows the one year performance of FTEC sha
In trading on Monday, shares of the Vanguard Mega Cap ETF (Symbol: MGC) crossed above their 200 day moving average of $138.05, changing hands as high as $139.11 per share. Vanguard Mega Cap shares are currently trading up about 0.9% on the day. The chart below shows the one y
For a crypto winter, things certainly seem to be warming up for bitcoin ETFs in 2023. This week’s top eight best-performing ETFs include bitcoin strategies from seven different shops and just one non-crypto strategy, the somewhat surprisingly included iShares MSCI Turkey ETF (TUR). Even while the fallout of the FTX affair from late last year [...]
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In trading on Monday, shares of the First Trust Dow Jones Internet Index Fund ETF (Symbol: FDN) crossed above their 200 day moving average of $137.33, changing hands as high as $137.65 per share. First Trust Dow Jones Internet Index Fund shares are currently trading up about 2
In trading on Monday, shares of the iShares Expanded Tech Sector ETF (Symbol: IGM) crossed above their 200 day moving average of $308.75, changing hands as high as $310.50 per share. iShares Expanded Tech Sector shares are currently trading up about 2% on the day. The chart b
BlackRock, Vanguard, and State Street’s hold on the ETF market is rock-solid, with the trio holding $5.2 trillion in assets of the $6.7 trillion held in American ETFs. But as 2023 rolls into full swing, which funds outside of the so-called Big Three are drawing the most assets? All data is as of market close, [...]
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As semiconductor stocks surge on Monday, investors can look to two Invesco ETFs for semiconductor exposure. The Invesco PHLX Semiconductor ETF (SOXQ) and the Invesco Dynamic Semiconductors ETF (PSI) each offer exposure to the semiconductor industry. SOXQ and PSI are each up over 4% on Monday. SOXQ and PSI have each increased around 16% year to [...]
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Equal weight outperformance has continued into the final week of January, as the index maintains its lead over the parent S&P 500 year to date. After outperforming the S&P 500 by 650 basis points in 2022, the S&P 500 Equal Weight Index — tracked by the Invesco S&P 500 Equal Weight ETF (RSP) — is [...]
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Markets are riding on the bet that inflation will not just fall this year, but will do so at a historic rate, according to the WSJ. Whether that bet plays out or not, managed futures strategies that capture market trends as they happen are potentially positioned for another year of compelling performance in 2023 as [...]
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(The following white paper on ETFs from T. Rowe Price was written by R. Scott Livingston, global head of exchange traded funds product.) Exchange-traded funds (ETFs) have become a cornerstone of the investment landscape. Unfortunately, however, there are still a number of misconceptions about these products. We believe it’s important to dispel these myths as they [...]
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2022 was a tough year to navigate for investors. Sky-high inflation in the U.S. and a land war in Europe led to a bear market both domestically and overseas. But in a webinar hosted by FCF Advisors, the investment firm argued that there’s a deeper reason for the current bear market. Namely, it’s marking a [...]
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Markets continue to rise and fall on inflation hopes and fears, but the resounding message emerging is one of recession. For advisors and investors looking to hedge in cash alternatives, the NEOS Enhanced Income Cash Alternative ETF (CSHI) is currently above technical indicators and worth consideration. The World Bank recently issued its Global Economic Prospects report [...]
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In trading on Monday, the SPDR S&P Semiconductor ETF is outperforming other ETFs, up about 3.9% on the day. Components of that ETF showing particular strength include shares of Advanced Micro Devices, up about 7.9% and shares of Sitime, up about 7% on the day.
U.S. stocks drifted between losses and gains. They were losing ground early this week as retail sales for December fell more than expected. They climbed on Friday in the wake of Alphabet (GOOG - up +6.98%), the latest company to announce thousands of job cuts after Microsoft, Meta, and Amazon. On the same day, Fed Governor Christopher Waller said he would favour a 25-basis point interest rate increase at the next meeting, confirming market expectations.
The Dow Jones Industrial Average lost 927.12 points week-over-week, or -2.70%, to 33,375.49, the S&P 500 fell -0.56% to 3,972.61 while the Nasdaq Composite added 61.27 points, or +0.55%, to 11,140.43.
European indices ended the week in the red with the MSCI EMU down -0.51% and the FTSE 100 down -0.94%. The European Central Bank maintained its hawkish tone. Klaas Knot, who serves as the governor of the Dutch central bank, said that the board members “will not stop after a single 50-basis point hike” at the next meeting in February.
In Asia, equity markets bucked the trend. The Shanghai composite notched its fourth consecutive weekly gain (up +2.18%) amid China’s rapid reopening. Yet growth in the world’s second largest economy slowed sharply in the fourth quarter. Japan’s Nikkei gained 1.66% as the Bank of Japan defied market speculation in keeping its key rate and yield curve control policy unchanged.
Growth stocks set the pace
The job cuts at Alphabet-Google (6% of their global workforce slashed, or 12,000 jobs) sent the communication services index up +2.97%. Its performance was also boosted by Netflix. NFLX shares rallied again (up +2.91%) after the streaming giant posted an increase of 7.6 million in subscribers in the fourth quarter, ending the year 2022 with 230.75 million subscribers.
Among the week’s top performers, the I.T. sector gained +0.68%, pushed higher by Apple stocks (APPL), up +2.31%. Energy was also in the green (up +0.74%) as WTI crude oil prices rose +1.82% despite weak U.S. economic data and an industry report showing a surprise jump in U.S. crude stocks.
All the other S&P sectors finished the week in negative territory. The worst performance came from industrials (-3.36%). Industrial production fell -0.7% in December, significantly higher than the consensus estimate (decline of -0.1%). It’s the biggest drop in industrial activity since September 2021. Defensive sectors were also facing headwinds. Utilities and consumer staples lost -2.93% and -2.86% respectively.
Treasury yields stabilize
After the best start to a year for bond markets, U.S. Treasuries showed signs of stabilizing. The yield on the benchmark 10-year Treasury note settled at 3.48%, down from 3.50% a week ago. The spread between the 2-year and 10-year yields fluctuated around -70 basis points. It is highly likely that the Fed will hike rates by 25 basis points at its next policy meeting on January 31 - February 1. Indeed, Governor Christopher Waller, a hawkish official at the U.S. central bank, joined other policymakers in backing another moderation in the size of rate increases. The terminal rate remained unchanged below 5% (Fed funds futures at 95.10 in June).
In Europe, the yield on the German 10-year Bund edged up one basis point to 2.18%. European Central Bank President Christine Lagarde said inflation remains far too elevated. As a result, the ECB will leave interest rates in restrictive territory for as long as it takes to bring down inflation to its 2% target.
By contrast, the Bank of Japan maintained its dovish policy after its two-day meeting, defying market expectations that higher inflation could force the Policy Board to move away from low interest rates. Instead, the central bank decided to continue to set short-term interest rates at -0.1% and guide 10-year yields to around 0%, through its yield curve control program.
Prices on corporate bonds continued to rise for the third week in a row, though to a lesser extent. Investment grade corporate bond prices were up +0.16% in Europe (IBOXX € Liquid Corporates index) and up +0.23% in the U.S. (IBOXX Ishares $ Investment Grade Corporate Bond Index).
High-yield bonds were mixed. They gained +0.22% in Europe (IBOXX € Liquid High Yield Index) and lost -0.49% in the U.S. (Markit iBoxx USD Liquid High Yield Capped Index).
Lastly, emerging debt in local currencies edged down -0.27% while the dollar index was virtually unchanged and gold extended its winning streak for the fifth straight week. The yellow metal closed at its highest levels since April at $1,928/Oz.
Against this backdrop, it’s worth noting that global bond issuance hit a record of nearly $590 billion in January, meeting with high demand across all regions.
In trading on Monday, shares of the iShares ESG Aware MSCI USA ETF (Symbol: ESGU) crossed above their 200 day moving average of $88.13, changing hands as high as $88.60 per share. iShares ESG Aware MSCI USA shares are currently trading up about 0.9% on the day. The chart belo
In trading on Monday, shares of the Vanguard Large-Cap ETF (Symbol: VV) crossed above their 200 day moving average of $181.08, changing hands as high as $182.00 per share. Vanguard Large-Cap shares are currently trading up about 0.9% on the day. The chart below shows the one
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Russell 1000 Value ETF (Symbol: VONV) where we have detected an approximate $356.1 million dollar inflow -- that's a 5.4% increase week ove
In trading on Monday, shares of the Invesco PureBeta MSCI USA ETF (Symbol: PBUS) crossed above their 200 day moving average of $39.55, changing hands as high as $39.73 per share. Invesco PureBeta MSCI USA shares are currently trading up about 0.7% on the day. The chart below
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $467.7 million dollar inflow -- that's a 0.6% increase week over week in out