Wall Street was bullish last week with the S&P 500 (up 1.64%), the Dow Jones (up 1.08%), the Nasdaq Composite (up 1.29%) and the Russell 2000 (up 1.13%) decently coming back mainly on solid earnings. Key US indices like the S&P 500 and the Dow Jones have hovered around all-time highs. The rally in oil continued last week with United States Petroleum Fund, LP The USO gains about 1.9%.
The current earnings season promises to be upbeat, with the big banks deserving of special mention. For the 69 members of the S&P 500 who released their third quarter results through October 20, total revenue and revenue are up 35.3% and 12.9%, respectively, compared to the same period the last year, with 87.0% exceeding EPS estimates and 72.5% exceeding revenue estimates. Third quarter earnings and revenue growth rates, as well as EPS and revenue beating percentages for these 69 index members are above historical averages (read: Dow Jones sets new all-time high: over potential for ETFs?).
The benchmark US Treasury yield reached 1.68% on October 21 as it started the week with a return of 1.59%. No wonder the rate hike gave financial ETFs a boost last week, most of which hit a new high in 52 weeks.
In this context, we highlight below a few ETFs that have made significant progress over the past week.
Focus on ETFs
Simplify Volt Pop Culture Disruption ETF VPOP – Up 10.41%
Since the fear of COVID-19 has not yet subsided, the option to stay at home from media and entertainment has been a winning one (read: 5 ETFs worth your attention as the Delta variant continues to spread ).
The Simplify Volt Pop Culture Disruption ETF seeks to focus on the few disruptive companies poised to dominate the new media age, and then improve concentrated exposures with options. The fund charges 95 basis points for a fee.
Advisorshares Dorsey Wright Alpha EW ETF DWEQ – Up 8.86%
This ETF is active and does not track a benchmark. The fund targets the strongest relative growth companies in the hottest industries. Industrials (34.8%), Information Technology (37.9%) and Real Estate (27.2%) are the three main sectors of the fund.
First Trust IPOX Europe Equity Opportunities ETF FPXE – Up 8.61%
The European IPO market has been in tears of late, despite any push from the PSPC deals. There have been no European PSPC deals since July, according to data from Refinitiv, while the number of IPOs in the third quarter reached its highest level since 2007. The amount raised in IPOs Europe was the highest since 2011, according to Reuters.
The Underlying IPOX 100 Europe Index is a market capitalization weighted index that measures the performance of recent European initial public offerings based on the IPOX Global Composite Index. The fund charges 70 basis points in fees.
ETF Kraneshares California Carbon Allowance KCCA – Up 7.39%
The KraneShares California Carbon Allowance ETF provides targeted exposure to the California Carbon Allowances (CCA) cap-and-trade program. KCCA is compared to the IHS Markit Carbon CCA Index, which tracks the most traded CCA futures contracts. As part of the KraneShares carbon ETF suite, KCCA is providing a new vehicle to participate in the carbon price and hedge risk while supporting responsible investment and ESG objectives. The fund charges 79bp in fees.
MSCI China Global Real Estate X ETF CHIR – Up 6.68%
Chinese company Evergrande is on the verge of avoiding a default as the property developer has reportedly paid the bond interest. Evergrande reportedly paid $ 83.5 million in interest on Evergrande’s March 2022 offshore bond on Thursday into a trust account at Citibank – as reported earlier Friday by the Securities Times – allowing it to pay all bondholders before the grace period expires on October 23.
This has loaded China’s struggling real estate sector. Evergrande missed four more coupon payments in September and October, which has hit the Chinese real estate space hard lately. The fund charges 66 basis points in fees.
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United States Petroleum ETF (USO): ETF Research Reports
ETF First Trust IPOX Europe Equity Opportunities (FPXE): ETF Research Reports
ETF Global X MSCI China Real Estate (CHIR): ETF Research Reports
AdvisorShares Dorsey Wright Alpha Equal Weight ETF (DWEQ): ETF Research Reports
ETF Simplify Volt Pop Culture Disruption (VPOP): ETF Research Reports
ETF KraneShares California Carbon Allowance (KCCA): ETF Research Reports
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