Nasdaq ETFs

Millionaire investors are expecting the S&P 500 to drop double digits in 2023, the strongest bear sentiments since the Financial Crisis of 2008, according to CNBC’s Millionaire Survey. The survey polled 761 investors with at least $1 million in investible assets and found that 56% expect the S&P 500 will drop 10% in 2023 and [...] Read more at ETFtrends.com.

Executive Summary Similar to the one-year lag in inflation taking hold as a result of too much stimulus, we expect the U.S. Federal Reserve (the Fed) to continue their tightening policy until well after the point that additional tightening is necessary. The most obvious reason to expect economic turmoil is that the full effects of [...] Read more at ETFtrends.com.

While tech giants like Apple (NASDAQ: AAPL) and Google parent Alphabet (NASDAQ: GOOGL) have seen their stocks go down by 27% and 39% year-to-date, both companies have used their ample free cash flow to finance their stock repurchasing programs. Free cash flow is the cash left over after a company has paid expenses, interest, taxes, [...] Read more at ETFtrends.com.

China’s recent regulatory shift to provide underlying monetary support for property developers and its struggling property sector as well as the rollback of its zero-COVID policy have resulted in one of the largest rallies in recent history for China’s property bonds and high-yield bonds market, reported WSJ. High-yield bonds in Asia gained 18% in total [...] Read more at ETFtrends.com.

US stocks notched a second week of losses, rattled again by the Powell-Lagarde duo’s rate warning. Investors fear that the central banks’ moves to fight inflation tip the economy into recession. Though the Federal Reserve and the European Central Bank raised interest rates by 50 basis points this week as expected, they made it clear that they still have some way to go on tight monetary policy. If Jerome Powell admits that there are some signs of inflation cooling, he also said that “we are not at a restrictive enough stance, even with today's move.” Powell’s hawkish tone hurt sentiment, pushing Wall Street’s main indexes lower. The Dow Jones Industrial Average slid 1.66% (down 9.41% year-to-date), or 556 points. The S&P 500 lost 2.08% (down 19.17% YTD) while the Nasdaq Composite fell 2.72% at 10,705.41 (down 31.57% YTD). Investors are increasingly concerned about a major policy error from central banks, not only in the US. European indexes were hit harder than their US counterparts as Lagarde delivered an even more hawkish speech, signalling further significant tightening remained ahead in the battle against inflation. The MSCI EMU plunged 3.24% week-over-week (down 14.51% YTD). The FTSE shed 1.93%, sliding into negative territory for the year (down 0.71%). Asian stocks followed suit though the Chinese government is working on an over 1 trillion yuan ($143 billion) support package to help its semiconductor industry weather U.S. restrictions on chip imports. The Shanghai Composite index snapped its six-week winning streak. It fell 1.22% bringing its YTD performance to -12.97%. Japan’s Nikkei did not fare better (down 1.34% for the week, down 4.39% YTD). Energy sector back in spotlight    WTI crude oil prices gained 4.60% over the last five days as China, the world’s biggest oil importer, moved further away from its zero-Covid policy. As a result, energy was the only S&P sector in the green this week (+1.72%) and remains the best performing sector year-to-date (up 51.46%), far outperforming any other equity group.  As was the case last week, defensive sectors fared a little better than the broad market with consumer staples down 1.40% and utilities down 0.55%. By contrast, growth stocks were the worst hit by the Fed’s restrictive monetary policy. Information technology lost 2.67%, weighed down by Apple stocks (APPL, -5.38% over the week). Communication services were also under pressure (down 2.47%) with the freefall in Netflix stocks (NFLX, down 9.16%). The consumer discretionary sector exhibited the poorest performance (-3.63%) as Tesla stocks (TSLA) took a nosedive (down 16.10%) after Elon Musk sold about 22 million more shares in his EV business for $3.6 billion. Asymmetry between US and European bond yields The 10-year Treasury yield fell from 3.59% to 3.49% as investors were digesting a disappointing retail sales report that added to concerns the Fed’s rate hiking campaign could lead to a severe recession. Similarly, the 2-year yield lost 14 basis points from 4.34% to 4.20%. The Fed Fund futures closed at 95.16 (May 2023). The terminal rate is now priced at 4.84% for next spring. In contrast, the yield on the German 10-year Bund jumped from 1.93% to 2.15%. The French 10-year OAT yield moved in tandem with the German bond, adding 30 basis points from 2.39% to 2.69% while the UK 10-year Gilt rose 15 basis points from 3.18% to 3.33%.  This asymmetry between US and European Treasury yields reverberated throughout investment grade corporate bonds. The IBOXX € Liquid Corporates index was down 1.31% over the week (down 12.46% YTD) while the IBOXX Ishares $ Investment Grade Corporate Bond Index edged up 0.23% (down 15.23% YTD). High-yield bonds lost 0.37% in Europe (IBOXX € Liquid High Yield Index down 9.16% YTD) and 0.17% in the U.S. (Markit iBoxx USD Liquid High Yield Capped Index down 7.57% YTD). Emerging debt in local currencies gained 0.13% (down 15.33% year-to-date) while the dollar index remained virtually unchanged over the week.

In trading on Monday, shares of the Vanguard High Dividend Yield ETF (Symbol: VYM) crossed below their 200 day moving average of $106.65, changing hands as low as $106.03 per share. Vanguard High Dividend Yield shares are currently trading off about 0.7% on the day. The chart

In trading on Monday, shares of the Vanguard Dividend Appreciation ETF (Symbol: VIG) crossed below their 200 day moving average of $150.83, changing hands as low as $150.43 per share. Vanguard Dividend Appreciation shares are currently trading off about 0.9% on the day. The c

In trading on Monday, shares of the iShares MSCI EAFE Growth ETF (Symbol: EFG) crossed below their 200 day moving average of $84.08, changing hands as low as $83.90 per share. iShares MSCI EAFE Growth shares are currently trading off about 0.7% on the day. The chart below sho

In trading on Monday, shares of the First Trust Water ETF (Symbol: FIW) crossed below their 200 day moving average of $78.26, changing hands as low as $78.19 per share. First Trust Water shares are currently trading off about 1% on the day. The chart below shows the one year

In trading on Monday, shares of the iShares MSCI Intl Quality Factor ETF (Symbol: IQLT) crossed below their 200 day moving average of $32.23, changing hands as low as $32.15 per share. iShares MSCI Intl Quality Factor shares are currently trading down about 0.8% on the day. T

Investors should consider the benefits of high dividend ETFs, the role dividend-oriented strategies can play in asset allocation, and the potential opportunity in equity income over the next decade. In the recent webcast, Why You Should Consider Allocating to High Dividend Stocks in 2023, Debbie Bickerstaff, senior vice president and portfolio manager at Federated Hermes, [...] Read more at ETFtrends.com.

Treasury yields rose on Monday after the Federal Reserve raised interest rates by 50 basis points and indicated that more rate hikes were to be expected. The yield on the benchmark 10-year Treasury was up by 10.8 points at 3.59% on Monday, while the 30-year Treasury yield gained 11.4 basis points to 3.64%, and the [...] Read more at ETFtrends.com.

Exchange: An ETF Experience is coming February 5–8, so Evan Harp is sitting down and chatting with some of the advisors who will be there. Today’s edition is focused on Kathryn Schwartz of Pawleys Investment Advisors. Evan Harp: When and how did your practice begin? Kathyrn Schwartz: I founded my company in 2010. I actually started in [...] Read more at ETFtrends.com.

It’s not just kids that love Grogu (a.k.a. “Baby Yoda”). Consumers aged 12 and older are responsible for a quarter of all toy sales annually, and the biggest driver of growth throughout the toy industry, according to data from the NPD Group. Looking at the three-year compound annual growth rate from 2019 to 2022, NPD [...] Read more at ETFtrends.com.

To learn more about Main Management and how some of our strategies could help you with your investment needs, please contact Darol Ryan, our Head of Sales and National Accounts, at ryan@mainmgt.com. Also check out Main Management CEO Kim Arthur on Twitter and Main Management on LinkedIn. Read more at ETFtrends.com.

Registration for the Teucrium AiLA Long-Short Agriculture Strategy ETF (NYSE Arca: OAIA) was made effective and is scheduled to trade on the New York Stock Exchange on Tuesday. The fund is designed to track the AiLA-S033 Index, a strategy holding both long and short positions in agricultural futures contracts listed on the Chicago Mercantile Exchange [...] Read more at ETFtrends.com.

There’s a new top-three player in ARK’s flagship ETF, the ARK Innovation Fund (ARKK). Despite CEO Cathie Wood’s spree of contrarian plays for stocks like Tesla (TSLA) and Coinbase (COIN), it’s the Exact Sciences Corporation (EXAS) that is now the second-highest weighted stock in ARKK at 8.7%, just behind Zoom (ZM) at 9.2%, according to [...] Read more at ETFtrends.com.

Fears that the U.S. economy will fall into a recession in 2023 have never been higher, with many high-net-worth investors believing a downturn is all but a certainty. A recent survey conducted by CNBC shows that this is the most bearish millionaire investors have been since the global financial crisis. According to the survey, 56% [...] Read more at ETFtrends.com.

The European Union bloc and EU Parliament announced they had reached an agreement over the weekend to reduce emissions more aggressively in the coming years. In doing so, changes to the EU Emissions Trading System, Europe’s cap-and-trade carbon allowances system, will be made to bring the carbon market in alignment with the faster trajectory towards [...] Read more at ETFtrends.com.

The Invesco Russell 1000 Equal Weight ETF is seeing unusually high volume in afternoon trading Monday, with over 272,000 shares traded versus three month average volume of about 50,000. Shares of EQAL were off about 1% on the day.