ETF Shelf - Week #35 Charted📊
Week #35 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.
Talks of the approval of US-based spot Bitcoin ETFs have gained momentum in the wake of Grayscale's legal win against the SEC concerning its Bitcoin spot ETF application.
The infographic presented below shows how funds offer exposure to Bitcoin, the biggest cryptocurrency by market cap.
Your thoughts👇…
📈Top ETFs of the Week
🌱 Cannabis ETFs
HHS Requests Marijuana Rescheduling: The Department of Health and Human Services (HHS) urged the DEA to reconsider marijuana's classification under the Controlled Substances Act, potentially easing federal restrictions.
Schedule III Consideration: Marijuana could move to Schedule III, indicating moderate dependence potential. DEA historically follows HHS recommendations, potentially leading to eased restrictions.
Industry Impact: Marijuana stocks rise as potential rescheduling offers relief from federal regulations, benefiting companies like Aurora Cannabis, Canopy Growth, and Tilray Brands whose shares spiked on the news.
Benefits and Changes: Rescheduling may unlock tax advantages, allow interstate commerce, boost research, attract investors, and enhance publicly traded stock value. Banking services remain restricted pending legislative changes.
Federal Legalization Goal: While a positive step, the ultimate aim is federal cannabis legalization, as emphasized by lawmakers and industry leaders like Senate Majority Leader Chuck Schumer.
🐲 China ETFs
China's Economic Boost Measures: China implemented measures to support its struggling economy, including potential reductions in lending rates and relaxing home-purchase restrictions. These steps aimed to counter a slowdown in the economy and particularly address challenges in the property sector, which contributes significantly to the country's GDP.
Property Market Concerns: The faltering property market, accounting for around a quarter of China's economy, has been a cause of concern due to developer Country Garden's debt crisis and declining home prices. The Chinese government's actions were aimed at preventing a further downturn in the property sector to stabilize the broader economic growth.
Foreign Exchange Reserve Cuts: The authorities cut the amount of foreign exchange reserves that institutions are required to hold, aimed at boosting liquidity in the economy and preventing further yuan depreciation. This move was seen as an effort to stabilize the currency and maintain investor confidence.
Real Estate Stocks Rise: The announcement of measures to support the property sector, including potential rate cuts and easing home-purchase restrictions, led to increased investor confidence. As a result, real estate stocks experienced a rally, with the CSI 300 Real Estate Index rising by 2.4% on Friday, indicating that investors believed these measures could help stabilize the property market.
📉Worst ETFs of the Week
🌙 Global X MSCI Pakistan ETF ($PAK)
Lingering Economic Turmoil: Pakistani stocks fell sharply this week due to economic uncertainty amid a slump in the rupee and speculations over a likely hike in interest rates on inflation worries.
🌱 Teucrium Wheat Fund ($WEAT)
Wheat Futures and Supply: Wheat futures hover around a 3-year low at $5.8 per bushel due to a robust supply outlook and rising Russian grain exports.
Russian Production and Consumption Forecast: Favorable weather bolsters Russian grain output; global consumption projection dips to 796.1 million tonnes due to varied factors, including uncertainty over Ukrainian supplies.
Utilizing Google Trends, we monitor the ETFs that have gained significant attention and popularity over the course of the week. Here are some of the most Googled ETFs this week.
🏦 SPDR S&P Regional Banking ETF ($KRE)
Regional banks are gearing up for a significant bond issuance, the largest since June, to address new capital requirements following the failures of Silicon Valley Bank and Signature Bank.
Proposals from regulatory bodies suggest that larger regional banks will need to issue more long-term debt to guard against potential losses in turbulent times.
Consequently, banks might need to sell around $40.5 billion of holding-company debt to comply with the new regulations. This surge in issuance comes after a period when many smaller banks refrained from entering the market due to costly borrowing and rating downgrades.
🌡 As the El Niño weather phenomenon takes center stage, sugar prices have been on the move. With dry weather predicted ahead, particularly in India, a key global sugar player, concerns arise over potential supply disruptions.
Click here or on the image below to learn how El Niño's can sway the tides of the sugar market, and how you can invest. 👇
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.