ETF Shelf - Week #34 Charted📊
Week #34 ETF Charted📊: Top-performing ETFs, worst-performing ETFs, emerging trends, new filings, and more! Follow @etfshelf on twitter for daily insights. Kindly read the disclaimer in the footer.
To kick off this week’s newsletter, I'd like to share a fascinating chart that goes beyond ETFs. It's a chart worth appreciating, and it's centered around one of the greatest investors of all time: the Oracle of Omaha.
According to the most recent quarterly report from Berkshire Hathaway, a milestone has been reached. The firm's balance sheet now boasts a historic achievement – its total assets have surged past the $1 trillion mark for the first time.
📈Top ETFs of the Week
🥈Silver ETFs
Silver rose above the $24 per ounce mark this week, hitting a three-week peak as the dollar and Treasury Yields retreated.
Solid industrial demand and tight supply provided support, and efforts to curb carbon emissions sped up the development of solar panel technologies that need higher conduction needs, causing sharp upgrades in forecasts for silver demand.
☢️Uranium ETFs
Uranium prices surged beyond $58 per pound in August, with a sixth consecutive week of gains, reflecting levels not witnessed since April 2022. This rise was motivated by consistent supply risks and a positive long-term demand outlook.
Supply disruption: Western utilities remained apprehensive about potential supply disruptions from Russia, as the specter of sanctions on its nuclear fuel supply remained. An incident involving a uranium-laden ship in St. Petersburg halted due to inadequate insurance, intensified concerns about trade interruptions. The incidents highlighted the fragility of local production, given Russia's pivotal role in global uranium conversion and enrichment.
Nuclear demand and expansion: Additionally, China's robust advancement in constructing large power plants and Europe's reliance on nuclear energy, exemplified by extended-operation approvals for aging reactors in France, continued to impact demand positively.
🛡️WisdomTree Cybersecurity Fund ($WCBR)
This week, standout performers in the WisdomTree Cybersecurity Fund include SentinelOne Inc - Class A (S) with a remarkable +14.4% performance, followed closely by Fastly Inc - Class A (FSLY) at +13.7%. Palo Alto Networks Inc (PANW) also demonstrated strong growth with a +10.0% performance increase.
Palo Alto Networks beats estimates: PANW stock surged following its fourth-quarter results, which exceeded Wall Street expectations. The Cybersecurity firm's revenue of $1.44 billion surpassed analysts' predictions of $1.28 billion, and the company projected stronger full-year billings of $10.9 billion to $11 billion compared to the expected $10.77 billion.
Bid for Struggling SentinelOne: Shares of the company surged after Cybersecurity startup Wiz said on Friday it is considering a potential bid for SentinelOne after the $4.9 billion company started exploring strategic options.
📉Worst ETFs of the Week
🌱 Cannabis ETFs
Shares of several companies among the top holdings of Cannabis ETFs experienced substantial double-digit declines this week. Canopy Growth Corporation (XTSE:WEED) saw a significant drop of 12.90%, while SNDL Inc. (XNAS:SNDL) followed closely with -12.71%. Incannex Healthcare Limited (XASX:IHL) underwent a noteworthy decrease of 12.00%, and Organigram Holdings Inc. (XNAS:OGI) and Tilray Brands, Inc. (XNAS:TLRY) both recorded dips of 11.46% and 11.36%, respectively.
Marijuana stocks have encountered a downturn in the current year, attributed to diminished demand after a pandemic-induced spike, sluggish growth, expansion of production by legal cannabis firms, restricted capital access, and investor unease regarding escalating industry debt.
The sector's challenges have been compounded by a rising inflation and interest rate environment, intensifying the pressure on the industry.
Another factor that could have contributed to the recent decline is the ongoing suspension of medical marijuana availability in Alabama. This suspension is the result of a legal dispute surrounding the licensing process.
In June, the Alabama Medical Cannabis Commission (AMCC) initially granted 21 licenses, only to reverse its decision later due to concerns about potential inconsistencies in how business license applications were evaluated by the University of South Alabama.
🛍️SPDR S&P Retail ETF ($XRT)
Foot Locker stock crashed this week by -32% as the company slashed its full-year outlook for the second straight quarter and suspended its quarterly dividend as a "still-tough consumer backdrop" weighs on the footwear retailer.
Dick’s Sporting Goods and Macy’s also fell this week by -24% and -20%, respectively, on cautious full-year forecasts.
Utilizing Google Trends, we monitor the ETFs that have gained significant attention and popularity over the course of the week. Here are some of the most Googled ETFs this week.
🎮 VanEck Semiconductor ETF ($SMH)
Nvidia's earnings report was the most anticipated this week, given its pivotal role as a market leader in Artificial Intelligence.
The company reported Q2 FY2024 revenue of $13.51 billion, a remarkable 101% YoY and 88% increase from the prior quarter.
Earnings per diluted share (GAAP) reach $2.48, up 854% YoY, and non-GAAP earnings hit $2.70, up 429% YoY.
CEO Jensen Huang emphasized a shift to accelerated computing and generative AI, backed by major partnerships.
SMH stands as the largest semiconductor ETF, commanding an impressive $9.5 billion in assets under management. Notably, it has attracted $468 million in fresh flows and generated a +46% return this year.
As of August 24th, NVDA dominates the fund's portfolio with a substantial 21.69% weight. Investors are drawn to this ETF and other semiconductor ETFs, aiming to harness NVDA's potential while spreading risk through diversification, especially due to NVDA's high valuations.
👎 The Inverse Cramer Tracker ETF ($SJIM)
The Inverse Cramer Tracker ETF lets investors bet against the stock of picks television personality Jim Cramer.
Social media users have pointed out that Cramer’s stock recommendations are sometimes a "death kiss" for the stock's performance, and conversely for his negative recommendations.
SJIM 0.00%↑ launched on March 1st, 2023 by Matthew Tuttle (Tuttle Capital Management) and has an expense ratio of 1.2%. The fund has over $3m in assets under management.
The long version of the fund The Long Cramer Tracker ETF ($LJIM), which launched alongside SJIM 0.00%↑ and was designed to mirror Cramer's picks, will be shut down in September due to limited investor interest.
Click on the image below to view the rise of active ETFs in 9 slides 🚀
To help you stay updated on the constant flow of ETFs being filed, launched, and closed, we have created an online Google Sheet that allows you to access and view the information anytime you need. Stay informed and keep track of the latest ETF developments with ease.
This newsletter is for informational purposes only and is not financial advice. We do not guarantee the accuracy of the information or calculations provided. It is essential to consult a qualified financial advisor before making any investment decisions. We are not responsible for any errors or omissions in the data. Investing in ETFs or any financial instrument involves risk, and you should conduct your own research. Past performance does not guarantee future results. By using this newsletter, you agree to these terms and conditions.