4 ETFs That Gained the Most On Wild Trading Day
Red-hot inflation data led to wild swings in the stock market on Oct 13. This is especially true as Wall Street staged a dramatic turnaround to close Oct 13 after falling at the start of trading.
While most of the ETFs were in green to close the day, we have highlighted five from different corners that gained the most in their respective industries. ProShares Equities for Rising Rates ETF EQRR, VanEck Vectors Oil Services ETF OIH, Invesco KBW Bank ETF KBWB, and Dividend Performers ETF IPDP are leading the way higher.
The core consumer price index, which strips out volatile components, such as food and energy prices, climbed 6.6% year over year, marking the biggest annual increase in 40 years. The consumer price index rose 0.4% in September after rising 0.1% in August, twice the 0.2% projected by analysts, even as the annual rate slowed slightly to 8.2% from 8.3%. The hot data came amid soaring prices for shelter, food and medical care, and would push the Federal Reserve toward another aggressive rate hike (read: 5 Sector ETFs to Win from September Inflation Data).
The S&P 500 closed up 2.6% after swinging more than 5% during a wild trading day. With this, the benchmark clawed back more than 40% of the losses over a six-day sell-off that took it to a two-year low. This marks the fifth largest intraday reversal from a low in the history of the S&P 500, and the fourth largest for the Nasdaq, according to SentimenTrader.
Meanwhile, the Dow Jones Industrial Average recorded the whipsaw moves, which were reminiscent of the early stages of the COVID-19 pandemic. The benchmark surged 1,500 points from its intraday lows to the highest level, falling more than 500 points and then rose at least 800 points. The wild moves signals further uncertainty and volatility in the stock market in the weeks ahead.
The rebound came on speculation that the year-long sell-off had potentially reached a bottom. Investors are betting that the stronger-than-expected inflation report means that price increases will peak soon.
Let’s dig into the detail of the above-mentioned ETFs:
ProShares Equities for Rising Rates ETF (EQRR) – Up 6%
ProShares Equities for Rising Rates ETF provides relative outperformance during periods of rising rates, as compared to traditional U.S. large-cap indexes, such as the S&P 500. It tracks the Nasdaq U.S. Large Cap Equities for Rising Rates Index. ProShares Equities for Rising Rates ETF holds 50 stocks in its basket with double-digit allocation each in energy, financials, basic materials and industrials.
ProShares Equities for Rising Rates ETF has accumulated $64.7 million in its asset base while charges 35 bps in fees.
VanEck Vectors Oil Services ETF (OIH) – Up 5.4%
VanEck Vectors Oil Services ETF tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. It holds 25 stocks in its basket.
With AUM of $2.2 billion, VanEck Vectors Oil Services ETF charges 35 bps in annual fees. It trades in average daily volume of 715,000 shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Top-performing ETF Areas of Last Week).
Invesco KBW Bank ETF (KBWB) – Up 5%
Invesco KBW Bank ETF provides exposure to the 26 large national U.S. money centers, regional banks and thrift institutions that are publicly traded in the United States. It follows the KBW Nasdaq Bank Index. Invesco KBW Bank ETF concentrates on the top five firms that make up nearly 8% share each (read: Bank ETFs: Value Play or Value Trap?).
Invesco KBW Bank ETF has managed $1.8 billion in its asset base and trades in a solid volume of 614,000 shares per day on average. The expense ratio comes in at 0.35%. KBWB has a Zacks ETF Rank #2 with a High risk outlook.
Dividend Performers ETF (IPDP) – Up 4.4%
Dividend Performers ETF is actively managed and seeks current income, with capital appreciation being a secondary goal. It invests in dividend-paying U.S. stocks paired with an S&P 500 Index-based option overlay for additional income. Dividend Performers ETF holds 57 stiocks in its basket with key holdings in industrials, information technology, healthcare and financials services.
Dividend Performers ETF has accumulated $12.9 million in its asset base since its debut on Mar 7 and charges 85 bps in annual fees. It trades in volume of 2,000 shares per day on average.
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VanEck Oil Services ETF (OIH): ETF Research Reports
Invesco KBW Bank ETF (KBWB): ETF Research Reports
ProShares Equities for Rising Rates ETF (EQRR): ETF Research Reports
Dividend Performers ETF (IPDP): ETF Research Reports
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