It was a short week for U.S. financial markets, but that did not stop some pre-Fourth of July fireworks from occurring on Wall Street as stocks raced to new all-time highs with the Dow Jones Industrial Average notching its first close above 17,000.
While the trading week lasted just three and a half days, there was plenty of action to be consumed and searches for select exchange traded funds soared. And even though equities were in the limelight for much of the short week, commodities ETFs were in focus as well.
That trend, sparked by the resurgence of gold-backed ETFs, has the SPDR Gold Shares (GLD) sitting at hits highest spot in our weekly most searched list since the start of 2014. After posting a 6% gain in June, GLD is seeing investors return in earnest. In just the past week, the world’s largest gold ETF has added $483.3 million in new assets. [Legitimate Return to Gold ETFs]
Among sector ETFs, the always well-trafficked Health Care Select Sector SPDR (XLV) grabbed top honors. The largest health care ETF is up 2% in the past week and touched a new all-time on Thursday.
Two trends are noticeable regarding the health care rally that sent 10 of the sector’s ETFs, including XLV, to new highs on Thursday. First, is the familiar and growing chorus crowing about high valuations. Second, is the lack of love for the contributions of the biotech industry to the aforementioned health care rally. The two kind of go hand-in-hand. [Health Care Valuations on the Rise]
Speaking of the health care rally, it is contributing to upside for other ETFs, the new First Trust Dorsey Wright Focus Five Fund (FV) makes its first appearance on our most searched list. FV allocates over 42% of its combined weight to health care-related ETFs.
Amid bullish economic data and the ongoing summer travel season, consumer discretionary ETFs saw an uptick in searches this week with the First Trust Consumer Discretionary AlphaDEX Fund (FXD) and the PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) leading the way. PEJ, which arguably does not get the attention it deserves, is up 3% in the past month. [Summer Travel ETF Ideas]
The Robo-Stox Global Robotics & Automation Index ETF (ROBO) made its first appearance on our most searched list this week thanks to the ETF’s status as one of the few funds that features decent exposure to 3D printer stocks. Rebounding 3D printer names, many of which are heavily shorted, have helped ROBO gain 6.6% in the past month.
For the first time in several months, a dividend ETF did not appear in among the 10 most searched ETFs on ETF Trends. However, that does not mean investors have forsaken income funds. International bonds ETF led the income brigade this week, paced by the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and the WisdomTree Emerging Markets Corporate Bond Fund (EMCB).
Emerging markets borrowers sold over $260 billion in new debt in the first half of this year with $60 billion coming from sovereign borrowers and $200 billion from corporations, Reuters reports, citing J.P. Morgan data.
SPDR Gold Shares
Tom Lydon’s clients own shares of GLD and EMB.