Wall Street staged a strong rally last week on fresh hopes of smaller interest rate hikes, following an easing in consumer prices. The S&P 500 rallied 5.9% — its best week since Jun 24— while the Dow Jones Industrial Average climbed 4.2%. The technology-heavy Nasdaq Composite Index jumped a whopping 8.1% — its biggest weekly gain since March (read: Wall Street Stages Largest Jump Since 2020: ETF Winners).
While the rally was broad-based, the technology sector led the way higher, with most ETFs gaining in double digits. These include WisdomTree Cloud Computing Fund WCLD, First Trust NASDAQ-100-Technology Sector Index Fund QTEC, VanEck Vectors Semiconductor ETF SMH, ARK Innovation ETF ARKK and Global X Social Media Index ETF SOCL.
Annual inflation slipped below 8% for the first time in eight months. The consumer price index rose 7.7% annually in October after rising 8.2% at the end of September, while the core consumer price index, which strips out volatile components such as food and energy prices, climbed 6.3% year over year, down from 6.6% in September. The data renewed optimism in the stock market about the Fed‘s possibility of slowing its pace of interest-rate increases in 2023.
Fed fund futures are now pricing in a 90% chance of a 50-bps rate hike at the Fed's December meeting.
WisdomTree Cloud Computing Fund (WCLD) – Up 15.9%
WisdomTree Cloud Computing Fund offers exposure to emerging and fast-growing U.S.-listed companies (including ADRs) that are primarily focused on cloud software and services, and follow the BVP Nasdaq Emerging Cloud Index. It holds 75 stocks in its basket and charges investors 45 bps in fees per year.
WisdomTree Cloud Computing Fund has amassed $540.1 million in its asset base and trades in an average daily volume of 384,000 shares. It has a Zacks ETF Rank #1 (Strong Buy).
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) – Up 15.4%
First Trust NASDAQ-100-Technology Sector Index Fund tracks the NASDAQ-100 Technology Sector Index, holding 42 stocks in its basket with almost equal allocation. From an industry look, software and semiconductors dominate the list with 40.1% and 30.6% share, respectively, while production technology equipment and consumer digital services make up for the next two spots (read: Tech ETF Winners Amid Big Tech's Acute Slump Last Week).
First Trust NASDAQ-100-Technology Sector Index Fund is a large-cap-centric fund with AUM of $1.3 billion and an average daily volume of around 109,000 shares. It charges 56 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
VanEck Vectors Semiconductor ETF (SMH) – Up 15.4%
VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. SMH follows the MVIS US Listed Semiconductor 25 Index, which tracks the most-liquid companies in the industry based on market capitalization and trading volume. VanEck Vectors Semiconductor ETF holds 25 stocks in its basket, with each firm making up for single-digit share (read: November Retail Sales Steady: 3 ETF & Stock Picks).
VanEck Vectors Semiconductor ETF has managed assets worth $6 billion and charges 35 bps in annual fees and expenses. SMH is heavily traded with a volume of 4.8 million shares per day and has a Zacks ETF Rank #1 with a High risk outlook.
ARK Innovation ETF (ARKK) – Up 14.7%
ARK Innovation ETF is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. In total, the fund holds 32 securities in its basket, with a moderate concentration on the top three firms.
ARK Innovation ETF has gathered $6.5 billion in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 24 million shares per day on average.
Global X Social Media Index ETF (SOCL) – Up 14.4%
Global X Social Media Index ETF provides investors access to social media companies around the world and has amassed $105.5 million in its asset base. It tracks the Solactive Social Media Total Return Index, holding 42 securities in the basket.
Global X Social Media Index ETF charges 0.65% in annual fees and sees lower trading volumes of roughly 19,000 shares a day. The fund has a Zacks ETF Rank #1 with a High risk outlook.
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VanEck Semiconductor ETF (SMH): ETF Research Reports
Global X Social Media ETF (SOCL): ETF Research Reports
ARK Innovation ETF (ARKK): ETF Research Reports
First Trust NASDAQ100Technology Sector ETF (QTEC): ETF Research Reports
WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports
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