6 Top ETFs of Last Week
Wall Street delivered a downbeat show last week with the S&P 500 and Nasdaq logging worst weeks since March due to rising rate worries. The S&P 5800 (down 2.9%), the Dow Jones (down 1.9%), the Nasdaq (down 3.6%) and the Russell 2000 (down 3.8%) – all key indexes slumped last week as rates are likely to remain higher for longer. Concern also emerged around a government shutdown, which could hurt consumer confidence and slow down the economy.
The benchmark U.S. treasury yield started the week at 4.32%, hit a high of 4.49% on Sep 21 and closed out the week at 4.44%. Meanwhile, the two-year rate touched its highest level since 2006. The Federal Reserve, as expected, kept interest rates steady at a 22-year high in the range of 5.25% to 5.5% but signaled one more hike this year.
Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have slowed in recent months but remain strong and the unemployment rate has remained low. But though inflation is easing, it remains elevated and is above the Fed’s 2% target (read: High-Dividend ETFs: Winners Amid Fed's Higher-For-Longer Rate Cues).
IPO-Packed Week
The U.S. IPO market, which has been in the doldrums for nearly two years, seems to be springing back to life. Two IPOs grabbed investor attention last week. These include grocery delivery company Instacart CART and software vendor Klaviyo KVYO. While Instacart jumped 12% on Nasdaq debut, Klaviyo gained 9% on NYSE debut (read: Instacart Pops 12% On Nasdaq Debut: 6 ETFs in Focus).
Inside Key Corporate Events
IP-based networking company Cisco Systems (CSCO) has announced its acquisition of cybersecurity heavyweight, Splunk (SPLK), for a staggering $28 billion. This huge deal marks Cisco's most significant move to bolster its software business and leverage the surge in artificial intelligence. The deal is anticipated to close by the end of the third quarter in 2024 (read: ETFs in Focus as Cisco Acquires Splunk in $28 Billion AI-Deal).
After the closing bell on Sep 20, transport bellwether FedEx (FDX) delivered mixed first-quarter fiscal 2024 results. The courier company topped earnings estimates but missed on revenues. It provided upbeat guidance for the fiscal year despite the ongoing demand weakness. Following the results, FDX shares jumped 5.8% in after-market trade (read: ETFs to Gain on FedEx Q1 Earnings Beat).
Against this backdrop, below we highlight a few winning ETFs of last week.
ETFs in Focus
Simplify Tail Risk Strategy ETF CYA – Up 50.6%
The Simplify Tail Risk Strategy ETF seeks to provide investors with a standalone solution for hedging diversified portfolios against severe equity market selloffs. The fund charges 84 bps in fees and yields 11.63% annually.
KraneShares Global Carbon Offset Strategy ETF KSET – Up 19.7%
The KraneShares Global Carbon Offset Strategy ETF provides broad coverage of the voluntary carbon market by tracking carbon offset futures contracts. The fund charges 79 bps in fees.
AdvisorShares Dorsey Wright Short ETF DWSH – Up 4.6%
The AdvisorShares Dorsey Wright Short ETF is actively-managed with an investment focus that involves buying securities that have appreciated in price more than the other securities in the investment universe and holding those securities until they underperform. The expense ratio of the fund is 2.77%.
AdvisorShares Ranger Equity Bear ETF HDGE – Up 4.5%
The AdvisorShares Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The expense ratio of the fund is 4.29%.
Simplify Interest Rate Hedge ETF PFIX – Up 4.4%
The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements arising from rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for income. The expense ratio of the fund is 0.50%.
AGF U.S. Market Neutral Anti-Beta Fund BTAL – Up 4.2%
The underlying AGFiQ US Market Neutral Anti-Beta ETF seeks performance results that correspond to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Thematic Market Neutral Anti-Beta Index. The expense ratio of the fund is 1.54%.
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AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports
AGF U.S. Market Neutral Anti-Beta Fund (BTAL): ETF Research Reports
Maplebear Inc. (CART): Free Stock Analysis Report
AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports
Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports
Simplify Tail Risk Strategy ETF (CYA): ETF Research Reports
KraneShares Global Carbon Offset Strategy ETF (KSET): ETF Research Reports
Klaviyo Inc. (KVYO): Free Stock Analysis Report
