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S&P 500's Worst Week Since January: Best ETF Areas

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Wall Street was downbeat last week with the S&P 500 (down 5.1%), the Dow Jones (down 4.6%), the Nasdaq Composite (down 5.6%) and the Russell 2000 (down 4.4%) shedding massively. The S&P 500 logged its worst weekly performance since January.

Inflation print for the month of May showed unexpected price increases, with consumer prices rising 8.6% year over year, the maximum since 1981. Consumer sentiment data released Friday morning came in at a record low, as inflation took away American households’ confidence in spending.

Treasury yields surged especially on the short end of the curve, and the 2-year yield jumped to more than 3%. The benchmark 10-year Treasury yield topped 3.1%. Against this backdrop, below we highlight a few winning ETF areas of last week.

Defensive

Investors should be prepared for a further crash in the market following inflationary pressure and recessionary talks. That is why defensive ETFs have been enjoying a smooth stretch in an otherwise downbeat market. Defensive ETFs could go a long way in restoring the value of one’s portfolio against this edgy backdrop.

US Anti-Beta Fund Mkt Neutral Quantshares BTAL – Up 3.70%

Rising Rates

Since chances of a super-hawkish Fed caused a rally in rates, ETFs that give shelter against rising rates rose. The FolioBeyond Rising Rates ETF gained last week. It is an actively managed exchange-traded fund that seeks to provide protection against rising interest rates while generating current income under stable interest rates.

FolioBeyond Rising Rates ETF RISR – Up 2.4%

Natural Gas

Natural gas prices jumped from Tursday after an explosion closed a Texas export terminal. The Freeport LNG terminal will be shut for at least three weeks after Wednesday's fire. The supply conditions of natural gas remain tight given the ongoing conflict between Russia and Ukraine, which is disrupting global supply in an already tight-supply market.

United States Natural Gas ETF UNG – Up 2.6%

Agriculture

U.S. soybean futures hit a record-high closing price and is nearing an all-time intraday high, according to Dow Jones, due to strong export demand for U.S. supplies and the start of dry weather in the Corn Belt, as quoted on Seeking Alpha.

Soybeans for July delivery settled at $17.69 per bushel on the Chicago Board of Trade, a record-high closing price, after peaking at $17.84, the highest intraday price on a continuous basis for the most-active contract since September 2012, the Seeking Alpha article indicated.

Teucrium Soybean ETF SOYB – Up 2.2%


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