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Yahoo
5 days ago
- Business
- Yahoo
Consumer Confidence Surges in May: ETFs to Gain
Consumer sentiment got a strong boost in May, thanks to optimism over easing trade tensions between the United States and China. According to a survey released on May 27, 2025 by The Conference Board, the Consumer Confidence Index jumped to 98.0, marking a 12.3-point increase from April. This figure also far exceeded the Dow Jones consensus estimate of 86.0, as quoted on CNBC. The primary driver of the surge was the progress in U.S.-China trade negotiations. President Donald Trump's decision on May 12 to halt severe tariffs appears to have reassured consumers. The May uptick follows five consecutive months of declining consumer confidence, a trend fueled by the escalating trade war initiated by President Trump. China was a key focus of U.S. tariff actions until both sides reached a temporary truce in early May. Other components of the survey also showed improvement. The Present Situation Index climbed to 135.9, up 4.8 points. The Expectations Index surged to 72.8, an increase of 17.4 points. Investor sentiment improved as well, with 44% now expecting stock prices to rise over the next 12 months, compared to 37.6% in April. Perceptions of the labor market also improved: about 19.2% of respondents expect more job availability in the next six months (up from 13.9%). Those expecting fewer jobs fell to 26.6% (from 32.4%). A slightly increased 31.8% said jobs are 'plentiful.' Against this backdrop, both consumer discretionary and staples-based exchange-traded funds (ETFs) should benefit. These ETFs include Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR, Fidelity MSCI Consumer Discretionary Index ETF FDIS, SPDR S&P Retail ETF XRT, Consumer Staples Select Sector SPDR Fund XLP, iShares U.S. Consumer Discretionary ETF IYC and iShares U.S. Consumer Staples ETF IYK. 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 Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports SPDR S&P Retail ETF (XRT): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports iShares U.S. Consumer Staples ETF (IYK): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports iShares U.S. Consumer Discretionary ETF (IYC): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
15-05-2025
- Business
- Yahoo
What's Behind the Surge in Options Income ETFs?
Income-hungry investors have been piling into ETFs that use options to deliver juicy dividends. We've seen a surge in launches of these products recently, as providers employ innovative strategies to package derivatives within the ETF structure to meet rising investor demand. In addition to offering high yields, these strategies generally help reduce portfolio volatility. However, investors should remember that there's no free lunch in investing. These products tend to perform best in sideways markets and often underperform during strong bull runs. That said, they can provide some downside protection when stocks fall. Roni Israelov, Senior Quantitative Researcher at Citadel, refers to these strategies as a 'Devil's Bargain.' His research shows that trading options to generate income can undermine long-term investment returns. Our own analysis of the most popular derivatives-backed ETFs also suggests that investors may be leaving significant returns on the table in their pursuit of high income. Nevertheless, these products have attracted substantial inflows this year, as market volatility has shaken investor confidence. The JPMorgan Equity Premium Income ETF JEPI uses proprietary research to select around 130 stocks and writes S&P 500 Index call options to generate income. Its top holdings include NVIDIA (NVDA), Microsoft MSFT, and Meta META. JEPI and its sister fund, the JPMorgan Nasdaq Equity Premium Income ETF JEPQ, are among the top asset gatherers this year. The Amplify CWP Enhanced Dividend Income ETF DIVO aims to deliver high income from both dividends and covered calls. Its managers focus on high-quality large-cap companies with a history of dividend growth and write covered calls on individual stocks. While DIVO has outperformed JEPI, both have significantly lagged the S&P 500 over the long term. JEPQ and the Global X Nasdaq 100 Covered Call ETF QYLD continue to underperform the Nasdaq 100 ETF QQQ. To learn more about these ETFs, please watch the short video above. 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 Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports Amplify CWP Enhanced Dividend Income ETF (DIVO): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): 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
08-04-2025
- Business
- Yahoo
Is Market Rebound a Value Play or Value Trap? ETFs in Focus
After a brutal last week on Trump tariff concerns, Wall Street attempted to bounce back on April 7. Invesco QQQ Trust QQQ added 0.24% in the key trading session and advanced 1.2% after hours. SPDR S&P 500 ETF Trust SPY lost 0.2% but added 1.1% after hours, and The SPDR Dow Jones Industrial Average ETF Trust DIA slipped around 1% during regular trading on April 7 but recovered with a 1.3% gain in after-hours trading. In a nutshell, Wall Street didn't exactly rally on Monday, but after a brutal 10% sell-off over two sessions, a more-or-less flat close came as a relief. Still, market nerves are far from settled. The VIX volatility index surged above 60 — only the second time it has reached such levels since the COVID-19 pandemic. Skepticism surrounds the sustainability of the current rebound. Despite the market's bounce, President Donald Trump has shown no sign of easing up on his aggressive trade stance. In fact, he has escalated the situation, threatening an extra 50% in tariffs on China — raising total levies well beyond 100%. Many Wall Street strategists are cutting the S&P 500 target on Trump's tariffs. DoubleLine's Gundlach said the S&P 500 could bottom at 4,500 and suggested investors to stay defensive, as quoted on CNBC. Due to Trump tariff fears, recessionary risks have Sachseconomists, led by Jan Hatzius, now see a 45% chance of a U.S. recession in the next 12 months, up from 35% last week. Before this, Goldman had been at a 20% recession probability risk, as quoted on Yahoo Finance. Against this backdrop, some U.S. sector-based exchange-traded funds (ETFs) like SPDR S&P Metals and Mining ETF XME and iShares U.S. Medical Devices ETF IHI have made great efforts to rebound. Both ETFs were up in the key trading session on April 7, unlike other funds. XME added 2.1% while IHI gained 0.7%. Meanwhile, Japan emerged as the standout performer. The Nikkei jumped 6%, thanks to optimism that Trump's tariff threats might be a start to negotiations. Supporting this view, U.S. Treasury Secretary Scott Bessent is expected to lead trade talks with Tokyo in the coming days. iShares MSCI Japan ETF EWJ could act as a good pick here. The ETF EWJ added 1.5% after hours on April 7. It all depends on tariff negotiations. If the situation worsens, we may see a further slide in stocks. And if there is any glimmer of hope on the tariff front, beaten-down stocks and ETFs would stage an ascent. 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 SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports iShares MSCI Japan ETF (EWJ): ETF Research Reports SPDR S&P Metals & Mining ETF (XME): ETF Research Reports iShares U.S. Medical Devices ETF (IHI): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
18-03-2025
- Business
- Yahoo
Markets Close in the Green After Rollercoaster Ride
Monday, March 17, 2025Market indexes took investors on a ride today, covering a wide range of terrain from more than -0.5% on the low end (Nasdaq) and nearly +1.5% (Russell 2000). The Trump administration has focused on deporting immigrants today and away from more bluster about tariffs, and we see the results: two straight Dow gained +353 points at the close, +0.85%, while the S&P 500 was up a more muted +36 points, +0.64%. The Nasdaq recovered to +54 points, +0.31%, while the small-cap Russell 2000 ruled the roost: +24 points, +1.19%. All these indexes finished off intra-day highs, but have now swung into the green over the past five trading days. Over the past month, they're all still way down: -6%, -7%, -11% and -9%, March read for the North American Home Builders (NAHB) Housing Market Index came in lower than expected: 39 versus 42 expected, which was also the print from a month ago. Current sales fell -3 points to 43, while sales expectations were flat month over month at 47. Tariff issues and labor shortages were among the issues cited for the weaker outlook for homebuilding. By the way, this week brings us some key homebuilding data: Housing Starts and Building Permits will be out tomorrow morning. Existing Home Sales are scheduled for Thursday, while Wednesday's report from the Fed — while not expected to move from its current 4.25-4.50% Fed funds rate — may have something to say about housing data, either in the Fed's statement, in Fed Chair Jerome Powell's press conference afterward, or both. Looking backward a bit, this morning also brought us January Business Inventories. These came in-line with expectations at +0.3%, swinging to a positive from the unrevised -0.2% the previous month. Wholesale inventories shot up +0.8% (from -0.4% in December), while Retail came in flat (an improvement from flat the prior month). Year over year, inventories are +2.3% — a fairly benign level or comments about this article and/or author? Click here>> 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 SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
