ETF Wrap: Cathie Wood’s Ark Investment funds aim for a comeback, and more bitcoin ETF applications

Welcome back! It’s the week before Memorial Day, so we’re going to keep this Wrap mercifully brief. As per usual, send tips, or feedback, and find me on Twitter at @mdecambre to tell me what we need to be jumping on. Sign up here for ETF Wrap.

What’s buzzy?

Don’t call it a comeback (no, seriously don’t), but Cathie Wood’s ARK Investment complex is making a solid showing this week, with three of her exchange-traded funds breaking into our list of Top 5 best performers for the week. Ark Innovation ETF and Ark Next Generation Internet ETF were both up more than 6%, while Wood’s fintech fund was pulling up the rear, with a more than 5% weekly gain (Check out our weekly moves table).

All three of those funds are saddled with sizable month-to-date losses of at least 6%, so there is a lot of ground to recovery before those funds dig out their holes. Ark InnovationARKK, Wood’s flagship fund, is up about 5% for the week, but missed our Top 5 list.

Barron’s, MarketWatch’s sister publication, named Wood one of the 100 Most Influential Women in U.S. Finance in 2021, and, of course, it has been tough sledding for her ever since.

Momentum shift in MTUM

Todd Rosenbluth, head of ETF and mutual fund research for CFRA, tells us that iShares Edge MSCI USA Momentum ETF MTUM, +0.42% rebalancing this week, part of a three-day rebalance, is a big deal. He says that 41% of the assets in the ETF had been in the technology sector, with a hefty smattering in consumer discretionary shares but that is about to change, with financials and other value names gathering steam. Financials are essentially the new momentum play.

Financials, including JPMorgan Chase JPM, +0.85%, Bank of America BAC, +0.81% and Wells Fargo & Co. WFC, +0.50% are 18% of that ETF’s weighting and tech is down to 28%.

Weekly ETF moves
Top 5 gainers of the past week % Performance
Ark Innovation ETF ARKK, -0.14% 6.2
Ark Next Generation Internet ETF ARKW, +0.09% 6.2
Invesco Dynamic Semiconductors ETF PSI, +1.09% 5.5
Global X FinTech ETF FINX, -0.10% 5.4
ARK Fintech Innovation ETF ARKF, -0.03% 5.3
Source: FactSet, through Wednesday, May 26, excluding ETNs and leveraged productsIncludes NYSE, Nasdaq and Cboe traded ETFs of $500 million or greater
Top 5 decliners of the past week % Performance
Global X Copper Miners ETF COPX, +2.99% -3.3
iShares MSCI Global Metals & Mining Producers ETF PICK, +2.60% -2.8
VanEck Vectors Oil Services ETF OIH, +1.59% -2.3
SPDR S&P Regional Banking ETF KRE, +1.44% -1.9
Global X Uranium ETF URA, +2.48% -1.9
Another bitcoin ETF application?

There are a number of companies trying to get regulatory approval for a bitcoin BTCUSD, +3.51% exchange-traded fund. Anthony Scaramucci’s SkyBridge Capital and Fidelity Investments’ Wise Origin Bitcoin Trust can be added to the growing list, reports CoinDesk.

Guess the stock in this chart
FactSet

Clue: Shares are up well over 200% since hitting a low on March 23 and the stock is a constituent of a number of ETFs that you know. Tweet your guesses to @mdecambre or email me.

Puff the magic ETF?

Defiance ETFs is slated to launch its psychedelic ETF on Friday. Defiance Next Gen Altered Experience ETF describes itself as a fund that tracks the performance of a portfolio of life sciences companies conducting federally legal medical activities in the psychedelics, medical cannabis, hemp, and cannabidiol (“CBD”) industries whose common stock or depositary receipts are listed on a U.S. or Canadian exchange.

It filed back in March.

An active ETF push

Putnam Investments announced the debut of its first actively managed exchange-traded fund: Putnam Sustainable Leaders ETF PLDR, -0.02%, Putnam Sustainable Future ETF PFUT, -0.02%, Putnam Focused Large Cap Growth ETF PGRO, -0.03%, and Putnam Focused Large Cap Value ETF.

CFRA’s Rosenbluth told Wrap that the offering joins actively managed funds from the likes of Gabelli Funds and T. Rowe Price, “as demand for actively managed ETFs has been increasing.”

So much Fomo

An ETF that offers investors exposure to meme assets, and all the trending investments that social media has to offer, is making its debut on Wall Street. Read about Tuttle Capital Management’s FOMO ETF FOMO, +0.96%  here.

Source

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