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Top and Flop ETFs of Last Week

Sanghamitra Saha

Global markets were shaky last week on rising fears of the coronavirus outbreak. Among the top ETFs, investors saw SPY lose 1.1%, DIA fall 1.5% and QQQ move 1.6% lower in the last week.

Against this backdrop, we highlight a few top and worst-performing ETFs of last week.

Best Performers

Volatility

Volatility in stock market spiked last week on renewed coronavirus fears. VelocityShares 1x Long VSTOXX Futures ETN EVIX and iPath Series B S&P 500 VIX Short-Term Futures ETN VXX added 12.2% and 10.2%, respectively last week.

Palladium

The palladium price rally seems to know no bounds. After a surge in 2019, the palladium price momentum is showing no signs of a slowdown this year as well. The rally has mainly been fueled by growing global demand and stagnating supply.

“There are few well-established palladium mines,” while demand has been rising on increased consumption of gasoline engines. Stringent emission control norms have been driving demand for palladium-using petrol cars as governments around the world look to fight climate change. Aberdeen Standard Physical Palladium Shares ETF PALL jumped 10.9% last week (read: What's Driving the Relentless Rally of Palladium ETF?).

Gold Miners

Gold had a sizzling 2020, thanks to the flare-up in equity market volatility and the resultant safe-haven rally.Last week, gold touched $1600 for the first time since 2013 and also provided a lift to mining ETFs.  

iShares MSCI Global Gold Miners ETF RING (up 9.6%), Sprott Gold Miners ETF SGDM (up 8.8%) and VanEck Vectors Junior Gold Miners ETF GDXJ (up 9.8%) are a few that received a boost.

Clean Energy

Upbeat earningsfrom Enphase Energy Inc. ENPH and Tesla’s TSLA optimistic solar plan boosted the space last week. Invesco Solar ETF TAN added 8.7% last week (read: Beyond Earnings, Is It Tesla That is Energizing Clean ETFs?).

Worst Performers

Inverse Treasury

U.S. treasuries performed better last week on rising demand for safe-haven assets. iShares 20+ Year Treasury Bond ETF TLT and iShares 7-10 Year Treasury Bond ETF IEF added about 0.7% and 2.0% last week (as of Feb 22, 2020). As a result, inverse treasury ETN Barclays Inverse US Treasury Composite ETN TAPR lost about 8.7%.

South Korea

South Korea ETFs like Franklin FTSE South Korea ETF FLKR and iShares MSCI South Korea Capped ETF EWY lost about 6% each last week. Beyond China, South Korea has reported the highest number of confirmed coronavirus cases.

Coal

The rapid rise in renewable energy generation capacity and declining coal energy production have been weighing on coal price. With China being a huge consumer of coal, the coronavirus outbreak dealt a blow to the coal investing. VanEck Vectors Coal ETF KOL has lost 4.9% in the past week.

Japan

Japan’s economy has also fallen prey to coronavirus. China is Japan’s second-biggest export destination. Not only carmakers, retailers are also eyeing China’s economy for expansion. Japan’s tourism industry will also suffer as China accounted for about 30% of all tourists visiting Japan and about 40% of the total outlays by foreign tourists last year, per an industry survey.

In any case, Japan’s economy has been struggling with lower consumer spending due to a sales tax hike last October. iShares MSCI Japan Small-Cap ETF SCJ (down 4.9%) andWisdomTree Japan SmallCap Dividend Fund DFJ (down 4.7%) are two of the worst-performing Japan ETFs (read: Tough Time for Japan ETFs? COVID-19 Alone Isn't the Culprit).

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Click to get this free report iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports Tesla, Inc. (TSLA) : Free Stock Analysis Report Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report iShares 7-10 Year Treasury Bond ETF (IEF): ETF Research Reports Invesco Solar ETF (TAN): ETF Research Reports iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports VanEck Vectors Coal ETF (KOL): ETF Research Reports Sprott Gold Miners ETF (SGDM): ETF Research Reports WisdomTree Japan SmallCap Dividend ETF (DFJ): ETF Research Reports iShares MSCI Global Gold Miners ETF (RING): ETF Research Reports iShares MSCI South Korea ETF (EWY): ETF Research Reports VanEck Vectors Junior Gold Miners ETF (GDXJ): ETF Research Reports Barclays Inverse US Treasury Composite ETN (TAPR): ETF Research Reports Aberdeen Standard Physical Palladium Shares ETF (PALL): ETF Research Reports Sprint Corporation (S) : Free Stock Analysis Report To read this article on Zacks.com click here.