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Top ETF Areas of Last Week

After huge selloffs over the past few days, the S&P 500, the Dow Jones and the Nasdaq rallied last week on the $2-TRILLION U.S. stimulus support and the Fed’s announcement of corporate bond buying. The three key U.S. equity gauges gained 10.3%, 12.8% and 9.1%, respectively, in the week. Several global markets followed suit.

Below we highlight a few investing areas that outperformed last week.

Marijuana

Pot stocks bounced back. It’s been a volatile journey for marijuana stocks in the past year. Earnings weakness, regulatory issues, “longer-than-anticipated product rollouts and overly enthusiastic forward estimates” hit the space hard (read: Are Marijuana Stocks & ETFs Coronavirus-Proof?).  

However, analysts are now of the view that the United States may be compelled to approve the recreational marijuana selling to cover up for part of the massive economic losses caused by the coronavirus pandemic. Marijuana sales have also been strong amid the virus outbreak as cannabis dispensaries have been listed as “essential services” along with other health facilities.

The Cannabis ETF THCX, Global X Cannabis ETF POTX and ETFMG Alternative Harvest ETF MJ added about 32.5%, 27.7% and 25.9%, respectively, last week (read: Are Marijuana Stocks & ETFs Coronavirus-Proof?).

Colombia

The U.S. dollar ETF Invesco DB US Dollar Index Bullish Fund UUP lost about 4.5% in the week, which helped several battered emerging currencies to gain moderately. Colombia's peso gained materially last week. Along with other Latin American counties, Colombian stocks too followed the strength in Wall Street. Global X MSCI Colombia ETF GXG and iShares MSCI Colombia ETF ICOL each gained more than 30% in the week.

Palladium

Risk-on trade sentiments helped palladium prices week. Notably, South Africa noted that it will continue to process platinum group metals (PGMs) during its 21-day coronavirus lockdown, per Reuters. Aberdeen Standard Physical Palladium Shares ETF PALL added 34.2% last week.

Airlines

Airlines companies were among the most-battered zones or virus-hit areas. U.S. Global Jets ETF JETS recorded a monthly loss of about 43% compared with about 21% retreat in the S&P 500.

The news of U.S. airlines being eligible for a combined $62-BILLION in federal loans and direct cash assistance to meet their payrolls boosted the space last week. JETS were up more than 27% over the time frame (read: Airlines Stocks & ETF Fly Higher on Stimulus Package).

Gold Miners

Gold saw the biggest weekly gain since late 2008 on Mar 27, adding more than 8.2%. Higher gold prices and the stimulus news bode well for gold mining stocks. Sprott Junior Gold Miners ETF SGDJ gained 22.8% last week.

Aerospace & Defense

The space rallied on Boeingnews. Notably, Boeing takes about 14% of the fund iShares U.S. Aerospace & Defense ETF (ITA). Per a Reuters report, Boeing plans to resume 737 MAX production by May, ending the prolonged halt following the deadly MAX jet crashes. The very news lifted investors’ sentiments.

The U.S. government stimulus deal “includes $17 billion in loans earmarked for companies deemed critical to national security, which is intended to assist Boeing,” though no name was mentioned, per Bloomberg. ITA added about 23.9% last week (read: US Stimulus Should Support These 7 ETFs).

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Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports
 
U.S. Global Jets ETF (JETS): ETF Research Reports
 
iShares MSCI Colombia ETF (ICOL): ETF Research Reports
 
Sprott Junior Gold Miners ETF (SGDJ): ETF Research Reports
 
Global X MSCI Colombia ETF (GXG): ETF Research Reports
 
Aberdeen Standard Physical Palladium Shares ETF (PALL): ETF Research Reports
 
ETFMG Alternative Harvest ETF (MJ): ETF Research Reports
 
The Cannabis ETF (THCX): ETF Research Reports
 
Global X Cannabis ETF (POTX): ETF Research Reports
 
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Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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