Latest news with #FTXR
Yahoo
30-04-2025
- Automotive
- Yahoo
Trump Cuts Auto Tariffs: What Does It Mean for FTXR, MADE?
The White House confirmed Tuesday that President Donald Trump will sign an executive order to soften the impact of automotive tariffs, preventing duties on foreign-made cars from stacking on top of other levies and providing reimbursement options for auto-parts tariffs. This decision comes as automakers and the broader transportation sector grapple with regulatory uncertainty and rising costs, with the White House press secretary announcing Trump would sign the executive order later Tuesday, according to CNBC reporting. The auto industry has lobbied intensely for relief, with six major policy groups representing manufacturers, suppliers and dealers joining forces last week to warn the administration that the 25% tariffs on imported parts could jeopardize U.S. automotive production and harm suppliers already "in distress," as reported by CNBC. The impact of these tariffs is reflected in the performance of ETFs holding major automakers like Ford Motor Co. (F) and General Motors Co. (GM). The First Trust Nasdaq Transportation ETF (FTXR), which has large holdings in both companies, has seen its performance decline in recent months. FTXR, which tracks an index of 30 U.S. transportation companies including auto manufacturers and electric-vehicle makers, holds Ford (9.6%), General Motors (8.8%) and Tesla Inc. (TSLA) (8.9%) among its top holdings, based on data. The fund has experienced challenges, declining 19.4% over the past three months and 16.7% year to date. The transportation-focused ETF has also experienced outflows, with investors withdrawing $1.3 million over the past month and $1.1 million year to date. In contrast, the iShares U.S. Manufacturing ETF (MADE), which also holds positions in Ford (3.3%) and General Motors (3.9%), has shown more resilience with smaller declines of 8.4% over three months and around 7% year to date. MADE has attracted new investment, with inflows of $2.5 million over the past month and $4.8 million year to date, data show. These contrasting ETF performances highlight how investors are responding differently to the auto industry's challenges amid the evolving trade policies. The Wall Street Journal reports that under the new measures, automakers paying Trump's 25% automotive tariffs won't be charged for other duties, such as those on steel and aluminum. The administration will also modify its approach to the upcoming 25% tariffs on foreign auto parts scheduled to take effect May 3. Meanwhile, General Motors acknowledged the uncertain trade environment on Tuesday, with shares down 1% after the company reported first-quarter earnings and said it was reconsidering its full-year outlook due to concerns over tariffs and macroeconomic uncertainty, according to | © Copyright 2025 All rights reserved
Yahoo
30-04-2025
- Automotive
- Yahoo
Trump Cuts Auto Tariffs: What Does It Mean for FTXR, MADE?
The White House confirmed Tuesday that President Donald Trump will sign an executive order to soften the impact of automotive tariffs, preventing duties on foreign-made cars from stacking on top of other levies and providing reimbursement options for auto-parts tariffs. This decision comes as automakers and the broader transportation sector grapple with regulatory uncertainty and rising costs, with the White House press secretary announcing Trump would sign the executive order later Tuesday, according to CNBC reporting. The auto industry has lobbied intensely for relief, with six major policy groups representing manufacturers, suppliers and dealers joining forces last week to warn the administration that the 25% tariffs on imported parts could jeopardize U.S. automotive production and harm suppliers already "in distress," as reported by CNBC. The impact of these tariffs is reflected in the performance of ETFs holding major automakers like Ford Motor Co. (F) and General Motors Co. (GM). The First Trust Nasdaq Transportation ETF (FTXR), which has large holdings in both companies, has seen its performance decline in recent months. FTXR, which tracks an index of 30 U.S. transportation companies including auto manufacturers and electric-vehicle makers, holds Ford (9.6%), General Motors (8.8%) and Tesla Inc. (TSLA) (8.9%) among its top holdings, based on data. The fund has experienced challenges, declining 19.4% over the past three months and 16.7% year to date. The transportation-focused ETF has also experienced outflows, with investors withdrawing $1.3 million over the past month and $1.1 million year to date. In contrast, the iShares U.S. Manufacturing ETF (MADE), which also holds positions in Ford (3.3%) and General Motors (3.9%), has shown more resilience with smaller declines of 8.4% over three months and around 7% year to date. MADE has attracted new investment, with inflows of $2.5 million over the past month and $4.8 million year to date, data show. These contrasting ETF performances highlight how investors are responding differently to the auto industry's challenges amid the evolving trade policies. The Wall Street Journal reports that under the new measures, automakers paying Trump's 25% automotive tariffs won't be charged for other duties, such as those on steel and aluminum. The administration will also modify its approach to the upcoming 25% tariffs on foreign auto parts scheduled to take effect May 3. Meanwhile, General Motors acknowledged the uncertain trade environment on Tuesday, with shares down 1% after the company reported first-quarter earnings and said it was reconsidering its full-year outlook due to concerns over tariffs and macroeconomic uncertainty, according to | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
08-03-2025
- Automotive
- Yahoo
Auto ETFs Skid Despite Trump Tariff Exemption
Auto ETFs holding Ford Motor Co. (F) and General Motors Co. (GM) dipped Thursday, despite President Donald Trump granting the automakers a month-long exemption from 25% tariffs on Canada and Mexico. While both Ford and General Motors are American companies, the automakers manufacture vehicles in Canadian and Mexican factories. The First Trust Nasdaq Transportation ETF (FTXR) dropped roughly 1% midday Thursday; the fund is the biggest holder of both Ford and General Motors with more than 13% allocated to the two companies. FTXR has been under pressure since tariffs against Canada and Mexico were first announced. Performance over the past month declined nearly 14%. Source: Shares of Ford declined over 1.75% while General Motors sank over 2.5% midday Thursday. The iShares U.S. Manufacturing ETF (MADE) fell more than 1.5% at midday. The fund was dragged down by its holdings in manufacturing companies that will get hit by the Canadian and Mexico tariffs, which target steel and aluminum imports. The First Trust S-Network Future Vehicles & Technology ETF (CARZ) also sank, falling nearly 2.5% midday. The fund primarily invests in the technology and components suppliers for automobiles. In his joint address to Congress, the president said the country would "have growth in the auto industry like nobody's ever seen. Plants are opening up all over the place. Deals are being made like I've never seen." "That's a combination of the election win and tariffs," he added. Markets, seemingly tired over the trade war, took a leg lower Thursday, even after announcements from the White House paused all tariffs on most Mexican imports. The Vanguard S&P 500 ETF (VOO) dropped close to 2%, while shares of tech-heavy Invesco QQQ Trust (QQQ) declined more than 2.4%. Markets Monitor shows that Mexican markets dropped 2.25%, while Canadian markets dipped nearly a quarter of a percentage point. Trump's tariffs have dragged down markets over the last month. According to data, VOO performance over the past month has fallen by just over 4%, as markets have been on a rollercoaster ride since tariffs were first announced at the start of | © Copyright 2025 All rights reserved Sign in to access your portfolio
