Best-Performing ETF Areas of Last Week

Wall Street was downbeat last week, with the S&P 500 losing 2.6%, the Dow Jones retreating 2.5%, and the Nasdaq falling 2.5%. Growing investor concerns over the United States' ballooning fiscal deficit weighed on Wall Street. Gold bullion-based exchange-traded fund (ETF) SPDR Gold Trust GLD advanced 4% last week, on rising safe-haven demand (read: Gold Eyes Best Week in a Month: Will ETFs Sustain the Rally?).

Investor Worries Grow Amid Credit Downgrade

Investors are now eyeing President Donald Trump’s tax legislation, which has passed the House and heads to the Senate, as a potential driver of an even larger deficit. Meanwhile, Moody’s Ratings stripped the United States of its top-tier credit rating (read: ETF Strategies to Follow on Moody's Downgrade of U.S. Debt).

Surging US Debt Fuels Concern

According to the Congressional Budget Office, the amount of outstanding U.S. Treasuries has ballooned from $4.5 trillion in 2007 to nearly $30 trillion today. Over the same period, public debt as a percentage of GDP has jumped from 35% to 100%.

Trump Tensions With EU and Apple

President Trump called for 50% tariffs on the European Union from June 1, after complaining that trade negotiations have stalled. The announcement came after Trump threatened to impose a tariff of at least 25% on Apple AAPL if the company does not start manufacturing iPhones in the United States.

Economic Data Shows Steady Growth

On the macroeconomic front, data released last week showed strength. U.S. business activity accelerated in May, signaling growing demand and business confidence. Initial jobless claims declined, pointing to continued strength in the labor market. These indicators support the view that the U.S. economy remains on a stable footing despite trade-related headwinds.

Winning ETFs in Focus

Against this backdrop, below we highlight a few winning ETFs of last week.

Uranium

Global X Uranium ETF URA – Up 14.9% Last Week

Sprott Uranium Miners ETF URNM – Up 12.3%

President Trump signed a set of executive orders on May 23to restructure the Nuclear Regulatory Commission (NRC), expedite the licensing process for nuclear reactors, and boost domestic uranium production.  The move boosted uranium ETFs.

Volatility

iPath Series B S&P 500 VIX Short-Term Futures ETN VXX – Up 13.4% Last Week

ProShares VIX Short-Term Futures ETFVIXY – Up 12.1%

With Wall Street witnessing considerable volatility last week, volatility-based ETFs and ETNs registered double-digit gains.

Gold Miners

Themes Gold Miners ETF AUMI – Up 13% Last Week

Global X Gold Explorers ETF GOEX – Up 11.8%

These ETFs hold stocks of companies that mine gold. They tend to experience more gains or losses than gold in a rising or falling metal market. As gold prices jumped last week, gold mining ETFs gained.  

Platinum

GraniteShares Platinum Trust PLTM – Up 11% Last Week

abrdn Physical Platinum Shares ETF PPLT – Up 10.9%

Platinum prices are gaining momentum after years of underperformance.Cheaper valuation than gold and supply constraints should boost the metal further (read: Platinum Prices Increase After Long Slump: More Gains for ETFs?).

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This article originally published on Zacks Investment Research (zacks.com).

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