|Bid||16.48 x 28000|
|Ask||17.61 x 45900|
|Day's Range||16.46 - 16.55|
|52 Week Range||13.50 - 18.81|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.19|
|Expense Ratio (net)||0.75%|
Money flow into the market’s largest ETFs have recently mirrored the relative price performance between large caps and small caps, which indicates that investors are still cautious.
Goldman expects commodities to surge around 17% over the coming months. We have highlighted five ETFs which we think could be well positioned if Goldman prediction comes true.
As the headwinds are likely to continue to dissipate, the potential benefits of real asset investing are coming into clearer focus. Notably, an allocation to real assets can be used to help investors enhance portfolio diversification, gain exposure to global growth, and hedge against the impact of inflation. As the current environment progresses, it is a good time to consider the impact of inflation and an allocation to real assets.
Inflation is something that has not been seen in well over a decade, but the ingredients are there: a strong U.S. economy, unemployment at historic lows, and the recent stimuli of tax reform, deregulation, and government spending, which may not even have fully taken hold yet. Plus, recent indications from the Fed continue to indicate a potentially more aggressive approach to tightening. In developed countries, inflation had languished below the central bank’s target level for many years.
To many market observers, the first quarter of 2016 marked the low point for sectors commonly associated with real assets. Stagnant global growth, oversupplied commodities markets, a strong U.S. dollar, and natural resource companies with bloated balance sheets overridden by enormous debt all combined to create tremendous headwinds that obscured the potential benefits of adding real assets to an investment portfolio. The recent environment, characterized by economic growth and heightened inflation expectations, provides an ideal backdrop for investors to consider real assets and their potential benefits.
The S&P 500 fell ~0.21% to 2,773.75 on June 18. Trade wars between the US and China pressured the S&P 500 on the same day. However, increased crude oil prices and energy stocks helped the S&P 500 rebound from the day’s low. Seven out of the ten key sectors in the S&P 500 declined on June 18.
On June 8–15, US crude oil July futures fell 1%. On June 15, US crude oil July futures settled at $65.06 per barrel. Last week, the US dollar rose 1.3%—a negative development for oil prices. The PowerShares DB US Dollar Bullish ETF (UUP), which tracks the US dollar, rose 1.3% last week.
The S&P 500 Index rose ~0.17% to 2,786.85 on June 12 due to a rise in utilities and real estate stocks. On June 12, President Trump and Kim Jong-un had a meeting about denuclearizing the Korean Peninsula. Six out of the ten major sectors in the S&P 500 rose on June 12.
The S&P 500 fell ~0.7% to 2,705.27 on May 31. The US government decided to impose taxes on metal imports from Canada, Mexico, and the European Union. The expectations of retaliatory measures from some of the trading countries pressured the S&P 500.
The S&P 500 fell ~1.2% to 2,689.86 on May 29, marking the largest one-day decline in a month. Concerns about political uncertainty in Italy and the Eurozone pressured US bank stocks—which, in turn, pressured the S&P 500. Eight of the ten key sectors in the S&P 500 declined on May 29.
Between May 18 and May 25, US crude oil July futures fell 4.9%—the steepest weekly decline since February 9. On May 25, US crude oil July futures settled at $67.88 per barrel—their first time below the $70.00 level since May 8.
The S&P 500 fell ~0.2% to 2,721.3 on May 25 due to lower crude oil prices dragging down energy stocks. Six of the ten key sectors in the S&P 500 fell on May 25, and the SPDR S&P 500 ETF (SPY) fell ~0.2% to $272.20.
The S&P 500 fell ~0.2% to 2,727.76 on May 24. The decline in crude oil prices and energy stocks pressured the S&P 500. On May 24, President Trump canceled the summit with North Korea scheduled on June 12, which also pressured the S&P 500. The meeting was canceled due to hostility from North Korea.
The S&P 500 rose ~0.3% to 2,733.29 on May 23 due to the rise in the utilities and real estate sector. On May 23, the Fed released the minutes for its meeting on May 2. The minutes highlighted that the Fed would increase the US interest rate gradually despite inflation rising at a faster pace. The meeting minutes supported the S&P 500 on May 23. Six out of ten key sectors in the S&P 500 advanced on May 23.
The S&P 500 fell ~0.3% to 2,724.44 on May 22 due to the decline in energy stocks. Uncertainty about the outcome of trade negotiations between the US and China also pressured the S&P 500. Six out of the ten key sectors in the S&P 500 dropped on May 22.
On May 11–18, US crude oil July futures rose 1%. On May 18, US crude oil July futures settled at $71.37 per barrel—0.2% below the highest closing level for US crude oil active futures in more than three years. On May 17, US crude oil active futures settled at $71.49 per barrel—the highest close since November 26, 2014.
The S&P 500 fell ~0.1% to 2,720.13 on May 17. The rising US ten-year Treasury yield and escalating trade tensions pressured the S&P 500. Five out of the ten key sectors in the S&P 500 declined on May 17. The SPDR S&P 500 ETF (SPY) fell ~0.1% to $272 on May 17. SPY seeks to follow the S&P 500 Index’s performance.
The S&P 500 rose ~0.4% to 2,722.46 on May 16 partly due to a rise in the materials sector. The small-cap US companies Russell 2000 Index hit a record high of 1,616.4 on May 16. Eight out of ten key sectors in the S&P 500 advanced on May 16.
The S&P 500 fell ~0.7% to 2,711.45 on May 15 due to the rise in the ten-year US Treasury yield. The ten-year US Treasury yield is at the highest level since July 2011. The ten key sectors in the S&P 500 declined on May 15.
The S&P 500 rose ~0.1% to 2,730.13 on May 14 due to the rise in crude oil prices and energy stocks. Four out of the ten key sectors in the S&P 500 rose on May 14.
On May 4–11, US crude oil June futures rose 1.4%. On May 11, US crude oil June futures settled at $70.7 per barrel—0.9% below the highest closing level for US crude oil active futures in more than three years. On May 10, US crude oil active futures settled at $71.36 per barrel—the highest level since November 26, 2014.
The S&P 500 rose ~0.2% to 2,727.72 on May 11. The bullish momentum in healthcare stocks supported the S&P 500. Five out of the ten key sectors in the S&P 500 advanced on May 11.
The S&P 500 rose ~0.9% to 2,723.07 on May 10 due to the rise in utilities and technology stocks. All of the key sectors in the S&P 500 advanced on May 10. The SPDR S&P 500 ETF (SPY) rose ~0.9% to $272 on May 10. SPY seeks to follow the S&P 500 Index’s performance.
The S&P 500 rose ~0.97% to 2,697.79 on May 9 due to higher crude oil prices, which lead to the rise in energy stocks. Nine out of ten key sectors in the S&P 500 advanced on May 9.