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Wall Street delivered moderate performance last week with the S&P 500 adding 1.4%, the Dow Jones advancing 1.6% and the Nasdaq Composite gaining 1.5%, respectively. US stocks closed mixed on Friday as rate-cut euphoria faded.
On Sept. 18, 2024, the Federal Reserve implemented its first interest rate cut in four years, reducing the benchmark rate by half a percentage point (50 basis points). This move comes in response to cooling inflation and a slowdown in the labor market.
The central bank’s preferred inflation measure shows that it is running at 2.5%, still above the 2% target but well below previous the peaks. The Federal Open Market Committee (FOMC) reduced the key overnight borrowing rate to a range of 4.75%–5% (read: Fed Cuts Rates by 50 Basis Points: Sector ETFs to Play).
The latest University of Michigan consumer sentiment index climbed 1.6% to 69 from 67.9 in August. Sentiment is now about 40% above its June 2022 low, though consumers remain cautious ahead of the November presidential election (read: ETFs to Tap on Improving Consumer Sentiment).
The Bank of Japan, which was tightening its policy unlike other central banks, also kept its benchmark interest rate steady at around 0.25% — the highest rate since 2008 — at the conclusion of a two-day meeting Friday. China also kept its key lending rates steady, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85% (read: Time for Global Equities ETFs?).
Against this backdrop, below we highlight a few winning exchange-traded fund (ETF) areas of the last week.
The ICE No. 11 Sugar Futures Contract looks to reflect the daily changes of a weighted average of the closing prices for 3 futures contracts for sugar that are traded on ICE Futures US. The expense ratio of the ETF is 1.00%.
The Simplify Propel Opportunities ETF seeks to provide long-term growth of capital by providing investors with exposure to biotech, pharma, health care technology and life science companies that are believed to be overlooked by investors, thereby presenting significant opportunities for capital appreciation. The expense ratio of the ETF is 2.51%. The ETF yields 13.64% annually.
Range Nuclear Renaissance Index ETF (NUKZ - Free Report) – Up 8.8%
The underlying Range Nuclear Renaissance Index tracks the performance of companies that are involved in the nuclear fuel and energy industry, particularly in the areas of advanced reactors; utilities; construction and services and fuel. The fund charges 85 bps in fees. The United States and 20 other countries announced plans to triple their nuclear power by 2050, which should boost the demand for uranium. China leads the nuclear energy bets, currently building 22 of 58 global reactors, and Japan restarted projects to build reactors. This has boosted the demand for uranium.
The underlying Bloomberg Ethereum Index measures the performance of a single ether traded in USD and seeks to provide a proxy for the ether market. The ETF charges 94 bps in fees. Ether’s liquid supply is falling. If demand continues to rise amid the return of risk-on trade sentiments, ether’s price would go up. Probably, this is why ETHT ETF gained last week.
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Best-Performing ETFs of Last Week
Wall Street delivered moderate performance last week with the S&P 500 adding 1.4%, the Dow Jones advancing 1.6% and the Nasdaq Composite gaining 1.5%, respectively. US stocks closed mixed on Friday as rate-cut euphoria faded.
On Sept. 18, 2024, the Federal Reserve implemented its first interest rate cut in four years, reducing the benchmark rate by half a percentage point (50 basis points). This move comes in response to cooling inflation and a slowdown in the labor market.
The central bank’s preferred inflation measure shows that it is running at 2.5%, still above the 2% target but well below previous the peaks. The Federal Open Market Committee (FOMC) reduced the key overnight borrowing rate to a range of 4.75%–5% (read: Fed Cuts Rates by 50 Basis Points: Sector ETFs to Play).
The latest University of Michigan consumer sentiment index climbed 1.6% to 69 from 67.9 in August. Sentiment is now about 40% above its June 2022 low, though consumers remain cautious ahead of the November presidential election (read: ETFs to Tap on Improving Consumer Sentiment).
The Bank of Japan, which was tightening its policy unlike other central banks, also kept its benchmark interest rate steady at around 0.25% — the highest rate since 2008 — at the conclusion of a two-day meeting Friday. China also kept its key lending rates steady, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85% (read: Time for Global Equities ETFs?).
Against this backdrop, below we highlight a few winning exchange-traded fund (ETF) areas of the last week.
Best-Performing ETFs in Focus
Teucrium Sugar Fund (CANE - Free Report) – Up 13.1%
The ICE No. 11 Sugar Futures Contract looks to reflect the daily changes of a weighted average of the closing prices for 3 futures contracts for sugar that are traded on ICE Futures US. The expense ratio of the ETF is 1.00%.
Simplify Propel Opportunities ETF (SURI - Free Report) – Up 9.0%
The Simplify Propel Opportunities ETF seeks to provide long-term growth of capital by providing investors with exposure to biotech, pharma, health care technology and life science companies that are believed to be overlooked by investors, thereby presenting significant opportunities for capital appreciation. The expense ratio of the ETF is 2.51%. The ETF yields 13.64% annually.
Range Nuclear Renaissance Index ETF (NUKZ - Free Report) – Up 8.8%
The underlying Range Nuclear Renaissance Index tracks the performance of companies that are involved in the nuclear fuel and energy industry, particularly in the areas of advanced reactors; utilities; construction and services and fuel. The fund charges 85 bps in fees. The United States and 20 other countries announced plans to triple their nuclear power by 2050, which should boost the demand for uranium. China leads the nuclear energy bets, currently building 22 of 58 global reactors, and Japan restarted projects to build reactors. This has boosted the demand for uranium.
ProShares Ultra Ether ETF (ETHT - Free Report) – Up 8.6%
The underlying Bloomberg Ethereum Index measures the performance of a single ether traded in USD and seeks to provide a proxy for the ether market. The ETF charges 94 bps in fees. Ether’s liquid supply is falling. If demand continues to rise amid the return of risk-on trade sentiments, ether’s price would go up. Probably, this is why ETHT ETF gained last week.