Top & Flop ETF Zones Of Last Week

U.S. stocks saw their biggest one-week rally since 1974, with the S&P 500 jumping 12.1% and Dow Jones climbing 13%. The slowdown in the number of cases in the biggest U.S. hot spot, New York, and Europe, as well as reduced hospitalizations, led to optimism in the market.

Additionally, the large fiscal and monetary stimulus promised by the central bank and the government added to the strength. In the latest move, the Fed announced a $2.3-trillion stimulus to boost local governments as well as small and mid-sized businesses to shield the economy from the effects of the coronavirus pandemic. The central bank said it would also buy investment-grade and junk bonds.

In the latest Fed minutes, the central bank said it will keep interest rates near zero until the economy has ‘weathered’ the outbreak’s impact and is on track to see maximum employment and meet price stability goals.

Meanwhile, bonds rallied while gold closed at the highest level since late 2012 as investors sought insurance against possibilities of further economic slowdown.

As such, we have highlighted the best and worst-performing zones of the last week and their ETFs:

Best Zones

Treasury

Treasuries rallied following weak U.S. jobless claims data and the Fed’s stimulus pushing yields down. iPath US Treasury 5-year Bull ETN (DFVL - Free Reportwas the biggest winner, having soared 48.1% last week. It offers exposure to the Barclays 5Y US Treasury Futures Targeted Exposure Index, charging investors 75 bps in annual fees. The note has amassed $6.1 million in its asset base and trades in average daily volume of under 1,000 shares.

Preferred Stock

The Fed’s rate cut scenario amid concerns related to the economic damage inflicted by the coronavirus has forced investors to seek products that pay outsized yields for their current income. In this regard, Virtus InfraCap U.S. Preferred Stock ETF (PFFA - Free Reportgained 39.7% last week. This fund seeks current income and capital appreciation through a portfolio of preferred securities issued by U.S. companies with market capitalizations of more than $100 million. It charges higher annual fees of 2.01% and has been able to manage an asset base of $75 million. The ETF trades in moderate volume of 78,000 shares.

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