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Yahoo
5 days ago
- Business
- Yahoo
Less-Than-Expected Inflation in July: Growth ETFs to Gain?
The Consumer Price Index (CPI) increased 0.2% sequentially and 2.7% year over year, according to the Bureau of Labor Statistics (BLS). This compares with Dow Jones forecasts of 0.2% monthly and 2.8% annual growth, as quoted on CNBC. Core Inflation at Multi-Month Highs Excluding volatile food and energy prices, core CPI rose 0.3% in July and 3.1% annually, in line with monthly expectations but slightly above the 3% yearly forecast. The monthly core gain was the largest since January, while the annual pace was the highest since February. Federal Reserve officials typically view core inflation as a better indicator of long-term price trends. Market Reaction and Fed Rate Cut Speculation Following the CPI release, U.S. stock markets rallied, while Treasury yields were mixed. Investors boosted bets that the Federal Reserve could cut interest rates in September, with market pricing also indicating a possibility of another cut in rates in October. Fed officials are also concerned about labor market weakness, which could support the case for rate cuts. Analysts' Views Many economists believe tariff effects are likely to cause one-time price hikes rather than continued inflation, though the broad range of goods covered under Trump's tariffs has raised the chances of prolonged price pressures, as quoted on CNBC. Time for Growth Stocks? Growth stocks perform better in a low-rate environment. Low rates reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets. Growth stocks, with their potential to offer high returns, become more appealing to investors in this environment, driving up their prices. ETFs to Buy Against this backdrop, below we highlight a few top-ranked growth-based exchange-traded funds (ETFs) that can be tapped if the Fed starts cutting rates soon. Vanguard Growth ETF VUG – Zacks Rank #1 (Strong Buy) Invesco S&P 500 Pure Growth ETF RPG – Zacks Rank #2 (Buy) Invesco Large Cap Growth ETF PWB – Zacks Rank #1 Vanguard S&P 500 Growth ETF VOOG – Zacks Rank #1 iShares S&P 500 Growth ETF IVW – Zacks Rank #1 Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 Pure Growth ETF (RPG): ETF Research Reports Invesco Large Cap Growth ETF (PWB): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports iShares S&P 500 Growth ETF (IVW): ETF Research Reports Vanguard S&P 500 Growth ETF (VOOG): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
06-08-2025
- Business
- Yahoo
Gold Set to Shine Again: ETFs to Tap the Momentum
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports iShares Gold Trust (IAU): ETF Research Reports abrdn Physical Gold Shares ETF (SGOL): ETF Research Reports SPDR Gold MiniShares Trust (GLDM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
25-07-2025
- Business
- Yahoo
Lithium ETF (LIT) Hits a New 52-Week High
For investors seeking momentum, Global X Lithium & Battery Tech ETF LIT is probably on the radar. The fund just hit a 52-week high and has moved up 56.2% from its 52-week low price of $31.44 per share. But are there more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed: LIT in Focus The underlying Solactive Global Lithium Index tracks the performance of the largest and most liquid listed companies that are active in the exploration and/ or mining of Lithium or the production of Lithium batteries. LIT charges 75 bps in annual fees. Why the Move? There is growing global race to secure critical minerals essential for the energy transition and advanced technologies. Lithium is one of critical mineral resources are vital for manufacturing electric vehicles, batteries, renewable energy systems, and modern electronics. More Gains Ahead? LIT may continue its strong performance in the near term, with a positive weighted alpha of 18.43 (as of which gives cues of a further rally. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global X Lithium & Battery Tech ETF (LIT): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-07-2025
- Automotive
- Yahoo
Why Global ETFs Could Surge Amid U.S.-Japan Trade Deal
The recent trade breakthrough between the United States and Japan — slashing auto tariffs from 25% to 15% — could usher in a fresh rally in global equities, especially in the auto sector. There is a surge in optimism, which could be reflected in global equity-based exchange-traded funds (ETFs) with broad international exposure, particularly those weighted heavily in automakers, industrials and global exporters. The Stoxx Europe Autos Index soared 4.2% on July 23, 2025, marking its best daily gain since February. Japanese auto giants like Toyota (+14%), Honda (+11%), and Nissan (+8%) also saw strong upward momentum, on the news of the deal. Hope for EU Deal Fuels Optimism Following the Japan deal, eyes have now turned to the European Union. Markets are increasingly pricing in the possibility of a similar trade agreement between the United States and EU, particularly after President Trump signaled that the European negotiations are imminent. 'The Japan deal has significantly raised hopes that the EU might also be able to reach a trade deal,' Deutsche Bank strategists noted, as quoted on CNBC. Citi economists highlighted that Japan secured the tariff reduction without an export cap, potentially setting a precedent for Europe. If the United States agrees to reduce tariffs on EU auto exports to 15%, as it did for Japan, ETFs with exposure to European automakers like iShares Europe ETF IEV or SPDR EURO STOXX 50 ETF FEZ could see sizable inflows. Improved Trade Backdrop Strengthens Business Confidence Multinationals have faced prolonged uncertainty due to escalating tariffs. German software giant SAP revealed that U.S. tariff pressures were causing delays in client decisions, especially among industrials and manufacturers. But with signs that trade relations are normalizing, that phase of uncertainty is likely to recede. Lower tariffs and greater clarity are expected to enhance capital expenditure, global supply chain flows, and cross-border investment, benefiting international industrial ETFs like the iShares Global Industrials ETF EXI. U.S. and Global ETFs Set for Momentum Shift Along with ETFs on Europe and Asia, U.S.-based ETFs are also positioned to gain. Funds like SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust QQQ stand to benefit as American companies engaged in global trade see improved margins and renewed demand. At the same time, broad global ETFs such as the iShares MSCI World ETF URTH and SPDR MSCI ACWI ex-US ETF CWI offer diversified exposure to rising optimism across multiple regions, including Japan, Europe, and other major trading partners now in the negotiation pipeline. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Europe ETF (IEV): ETF Research Reports SPDR EURO STOXX 50 ETF (FEZ): ETF Research Reports iShares MSCI World ETF (URTH): ETF Research Reports iShares Global Industrials ETF (EXI): ETF Research Reports SPDR MSCI ACWI ex-US ETF (CWI): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
21-07-2025
- Business
- Yahoo
Block Surges on S&P 500 Inclusion: ETFs in Focus
Shares of Block Inc. XYZ jumped over 8.5% in extended trading on July 18, 2025, following news that the fintech company will join the S&P 500 index, replacing Hess. The addition becomes effective before the opening bell on July 23, according to a statement from S&P Dow Jones Indices. Recent Changes to the S&P 500 This marks the second alteration to the benchmark index last week. Earlier, ad-tech firm The Trade Desk was added to the S&P 500, taking the place of software company Ansys. The latter was acquired by Synopsys in a deal that concluded on Thursday. Hess exited the index following Chevron's successful $54 billion acquisition of the oil producer, beating Exxon Mobil in a legal dispute over valuable offshore assets in Guyana. Why Index Additions Boost Stocks Companies that join the S&P 500 typically experience a stock price boost. This is largely due to fund managers and index-tracking ETFs rebalancing their holdings to include the new entrant. While most changes happen during the S&P's quarterly rebalancing, off-cycle adjustments occur in cases of mergers and acquisitions. For instance, Datadog recently replaced Juniper Networks as part of a scheduled quarterly shuffle. Tech Sector Gains Another Member Block's addition further strengthens the tech presence within the S&P 500. Originally known as Square, the company gained widespread adoption through its payment terminals and later diversified into crypto, lending and broader financial services. The company rebranded to Block in 2021 to signal a stronger commitment to blockchain technologies. Performance and Market Position Block's stock remains down 16% year to date, lagging the broader market. Note that the Nasdaq has climbed over 8%, while the S&P 500 has risen 7%. However, the stock has surged 14.5% over the past month. However, with a market capitalization around $45 billion, Block still ranks well above the median company in the index. ETFs in Focus Against this backdrop, investors can bet on exchange-traded funds (ETFs) like Twin Oak Endure ETF SPYA, VanEck Digital Transformation ETF DAPP, Amplify Digital Payments ETF IPAY, Fidelity Disruptive Finance ETF FDFF and iShares FinTech Active ETF BPAY. These ETFs are heavy on Block. The ETF SPYA invests about 7% weight in Block shares, while other ETFs invest in the range of 4% to 6% in Block shares. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amplify Digital Payments ETF (IPAY): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
