By Mark DeCambre
Hello there, again! It is good to be back to walk you through this week’s ETF Wrap.
Send tips, or feedback, and find me on Twitter at @mdecambre to tell us what we need to be jumping on.
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|Top 5 gainers of the past week||%Performance|
|AdvisorShares Pure US Cannabis /zigman2/quotes/220307682/composite MSOS||11.8|
|ProShares Bitcoin Strategy ETF /zigman2/quotes/230440344/composite BITO||7.7|
|iShares MSCI Global Gold Miners /zigman2/quotes/208061034/composite RING||7.4|
|VanEck Junior Gold Miners ETF /zigman2/quotes/204075079/composite GDXJ||7.3|
|ETFMG Prime Junior Silver Miners ETF /zigman2/quotes/207797470/composite SILJ||7.1|
|Source: FactSet, through Wednesday, Nov. 10, excluding ETNs and leveraged products . Includes NYSE, Nasdaq and Cboe traded ETFs of $500 million or greate r|
…and the bad
|Top 5 decliners of the past week||%Performance|
|ARK Genomic Revolution ETF /zigman2/quotes/206454610/composite ARKG||-6.4|
|ARK Innovation ETF /zigman2/quotes/204808965/composite ARKK||-6.3|
|ARK Fintech Innovation ETF /zigman2/quotes/205650811/composite ARKF||-5.4|
|SPDR S&P Biotech ETF /zigman2/quotes/205950134/composite XBI||-5.3|
|iShares Biotechnology ETF /zigman2/quotes/206189322/composite IBB||-5.1|
Goldman’s ARK Killers?
MarketWatch’s Christine Idzelis, who graciously looked after ETF Wrap last week , writes this week that Goldman Sachs Group /zigman2/quotes/209237603/composite GS -1.20% is launching three exchange-traded funds focused on secular growth trends, tilting into “themes of innovation and disruption.”
The Goldman Sachs Future Consumer Equity ETF GBUY, the Goldman Sachs Future Health Care Equity ETF GDOC, and the Goldman Sachs Future Real Estate and Infrastructure Equity ETF GREI, are actively managed and will trade on the New York Stock Exchange, according to a statement from the bank’s asset management group .
Katie Koch, co-head of the fundamental equity business at Goldman Sachs Asset Management, says the funds may help investors find bigger returns over the next decade, as the traditional portfolio comprising 60% stocks and 40% bonds is “very broken” and expected to produce smaller gains compared with the past 10 years.
The launch of the Goldman ETFs come as fund providers appear to be attempting to roll out challengers to Cathie Wood’s ARK Investment Manangement products, even as those ETFs face some headwinds.
Anti-Wood ETF hits
Speaking of Cathie Wood, on Tuesday, Tuttle Capital launched its actively managed short ARK ETF, which is known as Tuttle Capital Short Innovation ETF /zigman2/quotes/230869276/composite SARK +5.28% . As we’ve reported before, the fund will track the inverse of the flagship Ark Innovation ETF /zigman2/quotes/204808965/composite ARKK -5.73% and will be managed by Matthew Tuttle, CEO and CIO of Tuttle Capital Management.
The anti-ARKK fund was down 0.7% on Thursday after a 2.9% gain on Wednesday, according to FactSet data. The fund charges an expense ratio of 0.75%, which translates to an annual cost of $7.50 for every $1,000 invested, which incidentally is the same expense ratio as Wood’s ARK Innovation.
How are ETFs being used?
Citi researchers Scott Chronert and Drew Pettit offer a bullish outlook for ETFs, which have seen tremendous growth in 2021, as use cases for funds evolve.
The analysts say that the most common use for ETFs are unsurprisingly individual investors buying ETFs to get exposure to a broad basket of stocks, while institutions and hedge funds are increasingly using ETFs as hedging and tactical tools.
The folks at VanEck kicked off a so-called “green metals” ETF, which offers exposure to refiners, processors and recyclers of metals that are used in lower-carbon emission, or green, energy production.
The VanEck Green Metals ETF will trade on the NYSE’s Arca exchange and carries an expense ratio of 0.59%.
Its largest holdings include Freeport-McMoRan Inc. /zigman2/quotes/200215692/composite FCX -5.09% and Glencore PLC /zigman2/quotes/201400686/delayed UK:GLEN -0.59% , as well as Ganfeng Lithium Co. Ltd. /zigman2/quotes/200536076/delayed CN:002460 +0.91% .