ETF sectors and rotation

  • Climate Policies Helped Create High Shipping Rates. Now Some People Don’t Want Container Companies To Profit From Them

    In January 2020, a little-known rule went into effect that today regulates the kind of fuel maritime shipping vessels are allowed to use.

    I believe IMO 2020 has contributed to shipping rates that have remained elevated for over a year now, the other contributors being the pandemic, country lockdowns, consumers’ increased demand for goods and the ongoing semiconductor chip shortage.

  • Get Ready For A Major Travel And Tourism Recovery This Year, New Study Says

    The London-based group—whose members include executives from over 200 companies including United Airlines, Japan Airlines, Expedia, Hilton, Royal Caribbean and others—said in a press release dated February 9 that this year’s recovery is dependent on two conditions: 1) steady vaccine rollout, and 2) the lifting of international travel restrictions.

    Airline business confidence is improving, according to a January survey conducted by the International Air Transport Association (IATA), with nearly every airline CFO (96%) reporting that passenger demand increased in the fourth quarter of 2021.

  • What the Ukraine Crisis Means for Oil Prices

    A Russian invasion of Ukraine could materially disrupt the global oil supply in several ways, but none are likely, in our view.

    As Russia currently exports around 5 million barrels a day of crude oil, Iran-style sanctions specifically targeting Russian oil exports could theoretically wreak havoc on oil markets, but they are unlikely, in our view

  • 3 ETFs for Playing Defense in 2022

    The market’s rocky start to the year surely has some investors thinking about adding protection to their portfolios. 3 ETFs for Playing…

  • Oil ETFs Rally With Crude Prices Hitting a Seven-Year High

    “The damage to the UAE oil facilities in Abu Dhabi is not significant in itself, but it raises the question of even more supply disruptions in the region in 2022,” Rystad Energy’s senior oil markets analyst Louise Dickson told Reuters.

    “The attack raises the geopolitical risk in the region and may signal the Iran-U.S. nuclear deal is off the table for the foreseeable future, meaning Iranian oil barrels are off the market, boosting demand for similar grade crude originating elsewhere,” Dickson added

  • Energy Sector ETFs Are Leading the Charge in 2022

    Picking up from where they left off from 2021, energy sector-related exchange traded funds continued to lead the charge into the new year.

    Shares of U.S. energy companies have surged in the first two weeks of the new year as a shift to the value style and assets that benefit from the highest inflation in four decades helped the sector.

  • Leisure Stocks Might Be Consumer Cyclical Value Ideas

    Those concerns could eventually give way to opportunities with assets such as the ALPS Global Travel Beneficiaries ETF (JRNY).

    JRNY, which tracks the S-Network Global Travel Index (TRAVEL), allocates over 46% of its roster to consumer discretionary stocks.

  • Agriculture ETFs Surge Amid Corn and Soybean News

    In Argentina, a lack of wet weather conditions could continue, potentially affecting over half of corn and soybean crops by next week, the Commodity Weather Group said in a note, although the impact on yield remains nebulous.

    Meanwhile, corn is also surging on Tuesday, up more than 3.14%, amid news that a leading global corn producer has observed steady prices for the past few months on demand from China and harvest delays, despite bumper crop projections.

  • Schwab Sector Views: What’s to Like and Dislike About Technology

    The average performance of the S&P 500 Technology sector relative to the S&P 500 Index 12 months before and after the first increase in the Federal Reserve Bank’s federal funds target rate in the past five rate-hike cycles, as identified by Ned Davis Research.

  • Fed Tightening Doesn’t Have to Doom Nasdaq-100

    The outperformance of NDX was the joint effect of having the highest EPS growth and a more favorable valuation matrix,” says Richard Lin of Nasdaq.

    “The higher EPS growth is priced into the equity valuation and offsets the deterioration of discount rate due to rising rates,” concludes Lin.

  • Travel ETFs Jump as Traders Look Past Omicron

    “Omicron continues to be a concern, and while there’s still a lot more we don’t know than we do know about the latest strain, reports continue to suggest that despite the higher transmissibility, its impact has not been nearly as harsh,” Bespoke Investment Group, wrote in a note early Monday, Business Insider reports.

  • Sea and Air ETFs to Track Growing Global Trade

    In the recent webcast, Can Investors Capitalize on Supply Chain Disruptions? New ETF Opportunity, Frank Holmes, CEO of U.S. Global Investors, highlighted the potential opportunity in the global shipping industry, with roughly 80% of the world volume in trade goods carried by seah, and the percentage is even higher for developing countries.

  • Aggressive Growth, Momentum ETF Gets Refreshed

    “Since inception, WGRO maintained an over-weight allocation to the Consumer Discretionary sector relative to the S&P 500 and Russell 1000 Growth Indexes.Currently, WGRO allocates almost 19% of its roster to consumer cyclical stocks, making its third-largest sector weight a significant overweight to that group relative to the S&P 500.