Wall Street showed a heroic turnaround on Feb 24, shaking off the impact of the escalation in Russia-Ukraine tensions. This is especially true as the Nasdaq Composite Index turned to a positive 3% to end the day from a loss of 3%, while the S&P 500 bounced back from a drop of 1.5% to close 1.5% higher, marking an epic rally. The Dow Jones Industrial Average closed in positive territory after plunging more than 800 points (read: Russia Attacks Ukraine: ETF Areas Grabbing Investor Attention).
The rebound came on the back of President Joe Biden’s comments that compelled investors’ hunt for bargain buys. The most beaten-down growth and technology stocks were the biggest beneficiaries. Some ETFs gained more than 8% on the day. These include Simplify Volt Cloud and Cybersecurity Disruption ETF VCLO, Invesco Solar ETF TAN, Wisdomtree Cybersecurity Fund WCBR, TrueShares Technology, AI and Deep Learning ETF LRNZ and Invesco WilderHill Clean Energy ETF PBW. These funds seem excellent choices to play the rebound in the stock market.
U.S. President Joe Biden announced severe new sanctions against Russian banks and state-owned enterprises on Feb 24 in response to its full-scale invasion of Ukraine. Biden also announced measures to impede Russia's ability to do business in the world's major currencies, along with sanctions. Meanwhile, the European Union decided to retaliate and plans to slap sanctions on Russia’s defense minister, a top adviser to President Vladimir Putin and hundreds of Russian lawmakers who voted in favor of recognizing the independence of separatist areas in southeast Ukraine.
The United Kingdom also announced the largest-ever set of sanctions against Russia, including freezing the assets of all major Russian banks and banning hi-tech exports. Germany halted the approval of a major gas pipeline project, Nord Stream 2, in Russia that would have deepened western Europe's energy link to Russia, the world's largest natural gas exporter.
The war between Russia and Ukraine threatens to exacerbate already surging prices and spur other economic disruptions. But the G7 leaders are limiting "Russia's ability to do business in dollars, euros, pounds and yen to be part of the global economy.” This will likely have less impact on the global economy than initially feared (read: Russia-Ukraine Crisis Spark Rally in Commodity ETFs).
Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO) – Up 11.7%
Simplify Volt Cloud and Cybersecurity Disruption ETF is a thematic investment product and is actively managed. It is designed to concentrate on those few disruptive companies that are poised to dominate the new era of cloud technology and then enhance the concentrated exposure with options.
Simplify Volt Cloud and Cybersecurity Disruption ETF is a high-cost choice, charging 0.95% in annual fees. VCLO has accumulated $12 million in its asset base and trades in an average daily volume of 22,000 shares.
Invesco Solar ETF (TAN) – Up 8.6%
Invesco Solar ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index. It holds 51 stocks in the basket. It is moderately concentrated on components and American firms dominate with 42.7% of the fund’s portfolio, followed by China (24.5%) and Spain (6.6%).
Invesco Solar ETF has amassed $1.9 billion in its asset base and trades in a solid volume of around 1.3 million shares a day. It charges investors 66 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a High-risk outlook.
WisdomTree Cybersecurity Fund (WCBR) – Up 8.5%
WisdomTree Cybersecurity Fund targets exposure to companies driving innovation in cybersecurity technologies by tracking the WisdomTree Team8 Cybersecurity Index. The fund holds 27 stocks in its basket and charges 45 bps in annual fees.
WisdomTree Cybersecurity Fund has attracted $33.5 million in its asset base and trades in an average daily volume of 15,000 shares (read: Time for Cyber Security ETFs Amid Russia-Ukraine Tensions?).
TrueShares Technology, AI and Deep Learning ETF (LRNZ) – Up 8.2%
TrueShares Technology, AI and Deep Learning ETF is an actively managed fund targeting companies with leading-edge artificial intelligence, machine learning, or deep learning technology platforms, algorithms, or applications that are believed to provide distinct competitive advantages in an industry historically characterized by a winner-take-all consolidation behavior.
TrueShares Technology, AI and Deep Learning ETF holds 23 stocks in its basket and charges 68 bps in fees per year. LRNZ has amassed $30 million in its asset base and trades in an average daily volume of 16,000 shares.
Invesco WilderHill Clean Energy ETF (PBW) – Up 8.1%
Invesco WilderHill Clean Energy ETF offers exposure to companies that are publicly traded in the United States and are engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds 80 stocks in its basket.
Invesco WilderHill Clean Energy ETF has amassed $1.1 billion in its asset base and trades in a solid volume of around 469,000 shares a day. It charges investors 61 bps in fees per year.
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Invesco Solar ETF (TAN): ETF Research Reports
Invesco WilderHill Clean Energy ETF (PBW): ETF Research Reports
TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research Reports
Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO): ETF Research Reports
WisdomTree Cybersecurity Fund (WCBR): ETF Research Reports
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