Top And Flop ETFs Of Last Week

Last week was marked by high levels of volatility. This is especially true as the Nasdaq Composite reached new all-time highs topping the 10,000 level for the first time on Wednesday, while it tumbled 5.3% on Thursday in a broad market sell-off.

The rally early in the week came on optimism over accelerating economic activities as many states reopened. A booming technology sector, an unprecedented stimulus from the central bank and the government, and hopes of a potential coronavirus vaccine were the biggest catalysts in driving the stocks higher.

Renewed concerns over a second wave of coronavirus infections and Federal Reserve’s dim outlook in the latest FOMC meeting made investors’ jittery at the end of the week. Most notably, Texas reported 2,504 new coronavirus cases, the highest one-day total since the pandemic emerged. A month into its reopening, Florida reported 8,553 new cases — the maximum in any seven-day period — and California reported the highest number of hospitalizations since May 13 that have risen in nine of the past 10 days.

The central bank warned that the U.S. economy will contract by 6.5% in 2020 before rebounding 5% next year. It predicts that the unemployment rate will fall to 9.3% by the end of this year. Though this is down from 13.3% in May, it will be substantially above the 3.5% rate recorded in February — a near 50-year low.

For the week, the Dow plunged 5.6% while the S&P 500 tumbled 4.8%. The Nasdaq shed 2.3%, the biggest weekly percentage decline for the indexes since the week ended Mar 20.

Given the bull and bear tug of war, market volatility is back in the market. As such, we have highlighted the best and worst-performing ETFs of last week:

Best ETFs

VelocityShares Daily Long VIX Short-Term ETN (VIIX - Free Report)

As the stock market is witnessing huge volatility, volatility products were the biggest gainers. In particular, VIIX has jumped 33.1%. It seeks to deliver the daily performance of the S&P 500 VIX Short-Term Futures Index, which provides investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve. This ETN is unpopular and illiquid with AUM of $56.9 million and average daily volume of 69,000 shares. The note charges 89 bps in annual fees.

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