U.S. markets stumbled massively last week as renewed trade tensions and inflation concerns rattled investors. The S&P 500 declined 8.2%, recording its worst weekly performance since 2020. Dow Jones Industrial Average nosedived over 7% and officially entering correction territory. The Nasdaq Composite sank 8.6%, closing in bear market territory.
China Retaliates with New Tariffs
The selloff worsened following news that China will impose a 34% tariff on all US products starting April 10, parallelling the additional 34% tariff the Trump administration had announced on Apr. 2, 2025. The move heightened fears of a prolonged global trade war, with investors fearing trade retaliations rather than negotiations.
Investors Seek Safety in Treasury Bonds
Amid the market chaos, investors sought refuge in government bonds. The 10-year Treasury yielddropped to 3.9%, approaching its lowest level since October, reflecting growing concern over economic uncertainty.
Wining ETFs of the Week
Against this backdrop, below we highlight winning exchange-traded funds (ETFs) of the week.
iPath Series B S&P 500 VIX Short-Term Futures ETN VXX – Up 32.5%
Volatility levels spiked last week due to the market slump. The underlying S&P 500 VIX Short-Term Futures Index Total Return offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index. The ETF charges 89 bps in fees.
Cambria Tail Risk ETF TAIL – Up 8.9%
Risk-averse ETFs too jumped. This ETF is active and does not track a benchmark. The Cambria Tail Risk ETF seeks to mitigate significant downside market risk. The Fund intends to invest in a portfolio of out of the money put options purchased on the U.S. stock market. The fund charges 59 bps in fees and yields 2.58% annually.
AdvisorShares Ranger Equity Bear ETF HDGE – Up 7.1%
The AdvisorShares Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The expense ratio of the ETF 3.80% annually. The ETF yields 6.80% annually.
United States Natural Gas Fund LP UNG – Up 5.7%
The latest EIA report revealed that U.S. gas storage levels remain 4.3% below normal, despite three successive weeks of injections. This has boosted the natural gas prices. However, U.S. widespread market panic selling triggered by U.S. tariffs and recession fears have weighed on the natural gas prices at the end of the week.
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iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports United States Natural Gas ETF (UNG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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