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The Zacks Analyst Blog Highlights Simplify Interest Rate Hedge ETF, Energy Select Sector SPDR, SPDR S&P North American Natural Resources ETF, KFA Mount Lucas Index Strategy ETF and Leatherback Long/Short Alternative Yield ETF
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For Immediate Release
Chicago, IL – December 12, 2022 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Simplify Interest Rate Hedge ETF (PFIX - Free Report) , Energy Select Sector SPDR (XLE - Free Report) , SPDR S&P North American Natural Resources ETF (NANR - Free Report) , KFA Mount Lucas Index Strategy ETF (KMLM - Free Report) and Leatherback Long/Short Alternative Yield ETF (LBAY - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 ETFs That Gained More Than 20% This Year
Wall Street has been on a tough ride this year, with all three major indices in negative territory. Russia’s invasion of Ukraine, aggressive rate hikes by the Fed and global growth concerns have roiled the stock market badly. Additionally, a resurgence of COVID-19 cases in China has slowed down economic activities across the country.
While most of the market was in deep red, a few have performed well. The following funds, from various corners of the stock market, gained more than 20% so far this year.
These funds have been this year’s star performers and could also be winners for the next year if the current trends continue.
Current Market Trends
The Federal Reserve has been on an aggressive tightening policy to fight the skyrocketing inflation. The central bank has raised its interest rate by 375 bps this year in the fastest hikes since the 1980s. The aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions, including JPMorgan, BlackRock and Citi, forecasting a likely economic downturn in 2023.
The latest comments from Federal Reserve Chairman Jerome Powell signaled that smaller interest rate increases are likely and could start in December amid recent signs of ebbing inflation. Traders expect the Fed to increase rates by 50 bps to 4.25-4.50% in December, with the rates peaking in June 2023. However, the bouts of the latest data, hotter-than-expected Institute for Supply Management services and stronger jobs have put a damper on hopes that the Fed would ease the pace of its interest rate hikes (read: 5 Stocks in S&P 500 ETF That Gained Over Past Week).
The economy added 263,000 jobs in November, marking another strong month of job growth. The unemployment rate remained at 3.7%, close to a 50-year low, while average hourly earnings jumped 0.6% from the prior month and 5.1% from the year-ago month. Higher wages will add to higher inflation. Meanwhile, business activity jumped the most since March 2021 in November, suggesting that the largest part of the economy remains resilient. ISM’s gauge of services rose to 56.5 last month from 54.4 in October.
Simplify Interest Rate Hedge ETF – Up 69.9%
Simplify Interest Rate Hedge ETF seeks to provide a hedge against a sharp increase in long-term interest rates and benefit from market stress when fixed-income volatility increases while providing the potential for income. It buys put options on longer-term Treasury bonds to offer “the most liquid and the most cost-efficient way of getting interest rate protection.” Simplify Interest Rate Hedge ETF is the first ETF providing a simple, direct and transparent interest rate hedge.
PFIX has accumulated $340.5 million in its asset base and trades in an average daily volume of 386,000 shares. It charges 50 bps in annual fees.
Energy Select Sector SPDR – Up 57.6%
Energy Select Sector SPDR is the largest and the most popular ETF in the energy space, with AUM of $39.6 billion and an average daily volume of 24.1 million shares. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 23 securities in its basket, with a heavy concentration on the top two firms (read: Inverse Energy ETFs Rally as Oil Price Fall to 2022 Lows).
Energy Select Sector SPDR charges 10 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook.
SPDR S&P North American Natural Resources ETF – Up 26.7%
SPDR S&P North American Natural Resources ETF provides exposure to U.S. and Canadian publicly traded large and mid-cap companies within the materials energy and consumer staples industries with 52%, 43% and 5% share, respectively. It follows the S&P BMI North American Natural Resources Index, holding 34 stocks in its basket (read: 5 ETFs That Deserve Special Thanks in Rotten 2022).
SPDR S&P North American Natural Resources ETF has amassed $583.9 million and charges 35 bps in annual fees. It trades in a moderate volume of 56,000 shares a day on average.
KFA Mount Lucas Index Strategy ETF – Up 25.5%
KFA Mount Lucas Index Strategy ETF is benchmarked to the KFA MLM Index, which consists of 22 liquid futures contracts traded on U.S. and foreign exchanges. The Index includes futures contracts on 11 commodities, six currencies and five global bond markets. These three baskets are weighted by their relative historical volatility, and within each basket, the constituent markets are equal-dollar weighted.
KFA Mount Lucas Index Strategy ETF has amassed $281.7 million in its asset base and trades in an average daily volume of 255,000 shares. It charges 92 bps in annual fees.
Leatherback Long/Short Alternative Yield ETF – Up 21.7%
Leatherback Long/Short Alternative Yield ETF is actively managed that seeks income generation and capital appreciation through shareholder-yielding equities and income-producing securities. Leatherback establishes long positions in securities it believes will provide sustainable shareholder yield and takes short positions in securities it expects will decline in price.
Leatherback Long/Short Alternative Yield ETF has accumulated $62.7 million in its asset base and trades in an average daily volume of 19,000 shares. It charges 1.43% in annual fees.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Simplify Interest Rate Hedge ETF, Energy Select Sector SPDR, SPDR S&P North American Natural Resources ETF, KFA Mount Lucas Index Strategy ETF and Leatherback Long/Short Alternative Yield ETF
For Immediate Release
Chicago, IL – December 12, 2022 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Simplify Interest Rate Hedge ETF (PFIX - Free Report) , Energy Select Sector SPDR (XLE - Free Report) , SPDR S&P North American Natural Resources ETF (NANR - Free Report) , KFA Mount Lucas Index Strategy ETF (KMLM - Free Report) and Leatherback Long/Short Alternative Yield ETF (LBAY - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 ETFs That Gained More Than 20% This Year
Wall Street has been on a tough ride this year, with all three major indices in negative territory. Russia’s invasion of Ukraine, aggressive rate hikes by the Fed and global growth concerns have roiled the stock market badly. Additionally, a resurgence of COVID-19 cases in China has slowed down economic activities across the country.
While most of the market was in deep red, a few have performed well. The following funds, from various corners of the stock market, gained more than 20% so far this year.
These funds have been this year’s star performers and could also be winners for the next year if the current trends continue.
Current Market Trends
The Federal Reserve has been on an aggressive tightening policy to fight the skyrocketing inflation. The central bank has raised its interest rate by 375 bps this year in the fastest hikes since the 1980s. The aggressive approach has stoked worries of a recession, with top executives of major U.S. financial institutions, including JPMorgan, BlackRock and Citi, forecasting a likely economic downturn in 2023.
The latest comments from Federal Reserve Chairman Jerome Powell signaled that smaller interest rate increases are likely and could start in December amid recent signs of ebbing inflation. Traders expect the Fed to increase rates by 50 bps to 4.25-4.50% in December, with the rates peaking in June 2023. However, the bouts of the latest data, hotter-than-expected Institute for Supply Management services and stronger jobs have put a damper on hopes that the Fed would ease the pace of its interest rate hikes (read: 5 Stocks in S&P 500 ETF That Gained Over Past Week).
The economy added 263,000 jobs in November, marking another strong month of job growth. The unemployment rate remained at 3.7%, close to a 50-year low, while average hourly earnings jumped 0.6% from the prior month and 5.1% from the year-ago month. Higher wages will add to higher inflation. Meanwhile, business activity jumped the most since March 2021 in November, suggesting that the largest part of the economy remains resilient. ISM’s gauge of services rose to 56.5 last month from 54.4 in October.
Simplify Interest Rate Hedge ETF – Up 69.9%
Simplify Interest Rate Hedge ETF seeks to provide a hedge against a sharp increase in long-term interest rates and benefit from market stress when fixed-income volatility increases while providing the potential for income. It buys put options on longer-term Treasury bonds to offer “the most liquid and the most cost-efficient way of getting interest rate protection.” Simplify Interest Rate Hedge ETF is the first ETF providing a simple, direct and transparent interest rate hedge.
PFIX has accumulated $340.5 million in its asset base and trades in an average daily volume of 386,000 shares. It charges 50 bps in annual fees.
Energy Select Sector SPDR – Up 57.6%
Energy Select Sector SPDR is the largest and the most popular ETF in the energy space, with AUM of $39.6 billion and an average daily volume of 24.1 million shares. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 23 securities in its basket, with a heavy concentration on the top two firms (read: Inverse Energy ETFs Rally as Oil Price Fall to 2022 Lows).
Energy Select Sector SPDR charges 10 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook.
SPDR S&P North American Natural Resources ETF – Up 26.7%
SPDR S&P North American Natural Resources ETF provides exposure to U.S. and Canadian publicly traded large and mid-cap companies within the materials energy and consumer staples industries with 52%, 43% and 5% share, respectively. It follows the S&P BMI North American Natural Resources Index, holding 34 stocks in its basket (read: 5 ETFs That Deserve Special Thanks in Rotten 2022).
SPDR S&P North American Natural Resources ETF has amassed $583.9 million and charges 35 bps in annual fees. It trades in a moderate volume of 56,000 shares a day on average.
KFA Mount Lucas Index Strategy ETF – Up 25.5%
KFA Mount Lucas Index Strategy ETF is benchmarked to the KFA MLM Index, which consists of 22 liquid futures contracts traded on U.S. and foreign exchanges. The Index includes futures contracts on 11 commodities, six currencies and five global bond markets. These three baskets are weighted by their relative historical volatility, and within each basket, the constituent markets are equal-dollar weighted.
KFA Mount Lucas Index Strategy ETF has amassed $281.7 million in its asset base and trades in an average daily volume of 255,000 shares. It charges 92 bps in annual fees.
Leatherback Long/Short Alternative Yield ETF – Up 21.7%
Leatherback Long/Short Alternative Yield ETF is actively managed that seeks income generation and capital appreciation through shareholder-yielding equities and income-producing securities. Leatherback establishes long positions in securities it believes will provide sustainable shareholder yield and takes short positions in securities it expects will decline in price.
Leatherback Long/Short Alternative Yield ETF has accumulated $62.7 million in its asset base and trades in an average daily volume of 19,000 shares. It charges 1.43% in annual fees.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.