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Best and Worst ETFs of Last Week

Sanghamitra Saha

Global markets turned wobbly last week on the outbreak of the deadly SARS-like coronavirus in China.Authorities in China reported to start the week that about 140 new cases of coronavirus have been found, according to Reuters. By Jan 26, the death toll was 80 among 2744 cases. What’s more, there were 17 cases confirmed in Hong Kong, Macao and Taiwan. Rest of Asia, Europe, North America and Australia have confirmed cases of 26, 3, 6 and 4, respectively (read: Sector ETFs & Stocks to Gain/Lose on Coronavirus Outbreak).

The spread of the disease shook the global market as several leisure and airlines stocks took a hit. Materials stocks also suffered as China is a key consumer of the metal and remains an industrial hub. Oil prices retreated too on slowdown worries. The S&P 500 (down 0.8%), the Dow Jones (down 1.12%) and the Nasdaq (down 0.5%) — were all in the red last week.

Against this backdrop, below we highlight a few ETF winners and losers of the last week.

Top-Performing ETFs

Volatility – iPath Series B S&P 500 VIX Short-Term Futures ETN VXX – Up 6.9%

The S&P 500 fell about 1% on Jan 24, marking its biggest drop in about four months. Volatility crept up in the marketwith the equity market’s “fear gauge,” the Cboe Volatility Index, gained for four sessions in a row to the highest since Dec 30.

Treasury Bonds – PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund ZROZ – Up 4.4%

The benchmark treasury yields dropped to 1.70% on Jan 24 versus 1.84% on Jan 17 thanks to the safe-haven rally. This, in turn, boosted the Treasury bond market.

Inverse Equity ETFs – AdvisorShares Dorsey Wright Short ETF DWSH – Up 4.4%

The AdvisorShares Dorsey Wright Short ETF is actively managed with an investment focus that involves buying securities that have appreciated in price more than the other securities in the investment universe and holding them until they underperform.

Gold Miner – VanEck Vectors Gold Miners ETF GDX – Up 2.8%

The virus outbreak brightened the appeal of the safe-haven metal gold. Since mining stocks act as a leveraged play of the underlying metal, this mining ETF outdid last week. The underlying NYSE Arca Gold Miners Index tracks the overall performance of companies involved in the gold mining industry (read: 10 ETFs for 2020).

Worst-Performing ETFs

Energy – SPDR S&P Oil & Gas Exploration & Production ETF XOP – down 8.6%

The virus event flared up global growth worries, especially with China being the world's second-largest oil consumer. United States Oil Fund LP (USO) lost 6.6% last week and hurt this oil and gas fund.

China Technology – KraneShares CSI China Internet ETF KWEB – down 8%

Most Chinese stocks were battered last week with this high-beta Internet ETF being one of the top losers.

Copper Miner – Global X Copper Miners ETF COPX – down 7.7%

Copper miners bore the brunt too as China is a huge consumer of copper. COPX lost 1.2% on Jan 24 (read: NAFTA Gone, USMCA In: ETFs in Focus).

Shipping Breakwave Dry Bulk Shipping ETF BDRY – down 8%

Along with several travel stocks, shipping companies lost too. The fund’s underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight.

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VanEck Vectors Gold Miners ETF (GDX): ETF Research Reports
 
PIMCO 25+ Year Zero Coupon U.S. Treasury ETF (ZROZ): ETF Research Reports
 
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports
 
Global X Copper Miners ETF (COPX): ETF Research Reports
 
SPDR S&P Oil & Gas Exploration & Production ETF (XOP): ETF Research Reports
 
AdvisorShares Dorsey Wright Short ETF (DWSH): ETF Research Reports
 
KraneShares CSI China Internet ETF (KWEB): ETF Research Reports
 
Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports
 
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