Latest news with #SPDRS&P500
Yahoo
3 days ago
- Business
- Yahoo
ETF investors take man of steel view, inflows on pace for record year
Despite the whiplash of President Donald Trump's tariffs, trade uncertainty and day-to-day market swings, investors are pouring money into exchange-traded funds to capture fast-moving stock and bond action. With $121 billion flowing into ETFs industrywide in July, the yearly tally hit $677 billion and is now on pace for a record $1.3 trillion for 2025, as tracked by State Street Research, the third-largest ETF firm, with over $1.2 trillion in assets. While U.S. equity ETFs maintained their dominance, netting over $56.9 billion in July, foreign rivals are seeing a renaissance as investors seek more diversification. Non-U.S. equity ETFs saw $24 billion in new money. Trump Slaps India With Tariffs "This reflects a preference for greater geographical diversification amid the redrawing of our global macroeconomic paradigm that has the potential to upend the prior era of global cooperation that uniquely benefited US assets" wrote Matthew Bartolini, head of Americas ETF Research, State Street Investment Management, in a note titled "A rally made of steel?". Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation Still, State Street's flagship ETFs which track the S&P 500, the SPDR S&P 500 ETF Trust or SPY and the SPDR Portfolio S&P 500 ETF or SPLG, saw $9.7 billion in inflows this year, even as the S&P continued to set multiple new record highs. This is three times the average monthly flow over the past year for the combo. Read On The Fox Business App Microsoft Joins Exclusive $4 Trillion Club The S&P 500 has gained nearly 8% this year through Monday. "It's a bird! It's a plane! No, it's not Superman, but a stock market rally that continues to zoom through a flurry of macro headlines", Bartolini wrote. As for bonds, investors plowed $24 billion into fixed income across the curve. Of note, inflation-linked bonds recorded their seventh month in a row of inflows, the longest stretch since 2021, Bartolini noted. The sector inflows crossed over $200 billion for the year, the fastest ever seen in a year. Despite headline inflation cooling, prices for items such as beef remain high, up 10% annually as of the latest consumer price index. Inflation Ticked Higher In June, Creating Headwinds For Fed Investors yanked $6 billion from U.S. small caps, their seventh month in a row of outflows. Three-to-six-month flows for these domestic-based companies have never been worse, Bartolini observes. "Given the elevated rate regime, uncertain macro backdrop with tariffs likely ending up as growth negative and inflation positive, as well as weak profitability trends (34% of small caps are unprofitable), the small-cap headwinds may continue—with investors looking elsewhere to place their tactical capital," he wrote. Original article source: ETF investors take man of steel view, inflows on pace for record year 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
Economic Times
5 days ago
- Business
- Economic Times
Wall Street is warning investors to get ready for stocks to drop
A chorus of stock market prognosticators at some of Wall Street's biggest firms is warning clients to prepare for a pullback as sky-high equity valuations slam into souring economic data. ADVERTISEMENT On Monday, Morgan Stanley, Deutsche Bank AG and Evercore ISI all cautioned that the S&P 500 Index is due for a near-term drop in the weeks and months ahead. The predictions come after a furious rally from April's lows that propelled the gauge to levels it has never seen before. Morgan Stanley strategist Mike Wilson sees a correction of up to 10% this quarter as tariffs hit consumers and corporate balance sheets. Evercore's Julian Emanuel is expecting a more substantial decline of as much as 15%. And a team at Deutsche Bank led by Parag Thatte notes that a small drawdown in equities is overdue considering they've been on a tear for over three months. 'Over the last couple of weeks, we have noted that investors should expect a modest pullback in the third quarter,' Wilson said in his note to calls are coming amid mounting concerns about the US economy after data last week showed an uptick in inflation as well as weakening job growth and consumer spending. In addition, stocks are entering what's usually their weakest time of the year. Over the past three decades, the S&P 500 has performed the worst in August and September, losing 0.7% on average in each month, compared with a 1.1% gain on average across other months, according to data compiled by Bloomberg. ADVERTISEMENT In addition, stocks have gotten expensive. The S&P 500's 14-day relative strength index topped 76 last week — its highest point since July 2024 before US stocks briefly peaked last summer and above the 70 level that market technicians view as a sign of overheating. Options trading is also showing the fear of a downturn, as hedging against another rout becomes more expensive. Contracts protecting against a 10% decline in the SPDR S&P 500 ETF Trust (SPY) over the next 60 days, compared to the cost of contracts hedging against a similar rally is hovering around levels not seen since the regional banking crisis in May 2023. ADVERTISEMENT Still, despite the near-term concerns, the warnings come with a big bullish caveat: In the event of a dip, buy Evercore, Emanuel emphasises that the long-term bull market in stocks is still intact despite expectations for volatility, and he advises clients to stay invested, particularly in companies capitalising on the artificial intelligence boom. Deutsche's Thatte points out that historically, the S&P 500 experiences small pullbacks of around 3% every one-and-a-half-to-two months on average, and larger ones of 5% or more every three to four months. ADVERTISEMENT 'We're buyers of dips,' Wilson told clients. So far, traders are heeding the advice. The S&P 500 and Nasdaq 100 Index are both up more than 1% on Monday after Friday's selloff on optimism that the Federal Reserve will cut interest rates soon. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Yahoo
5 days ago
- Business
- Yahoo
Top-Performing ETF Areas of July
Wall Street was moderate in July, with SPDR S&P 500 ETF Trust SPY adding about 2.2%, SPDR Dow Jones Industrial Average ETF Trust DIA adding about 0.1% and the Nasdaq-100-heavy ETF Invesco QQQ Trust, Series 1 QQQ adding about 2.4% over the past month. There were monster earnings from Microsoft and Meta in July. Amazon beat on Q2 earnings and revenues, but weak Q3 guidance sparked a drop in shares. However, Apple popped on earnings. U.S. Economy Giving Mixed Signals After a surprise contraction in the first quarter, the U.S. economy rebounded strongly in the second quarter of 2025. According to the advance estimate of the Bureau of Economic Analysis (BEA), gross domestic product (GDP) grew at an annualized rate of 3% between April and June. This exceeded Bloomberg economists' forecast of 2.6% growth. But then, U.S. jobs data came in soft at the start of August. The July jobs report revealed that nonfarm payrolls rose by just 73,000, far below the 100,000 gain expected by economists surveyed by Dow Jones. The previous months saw steep downward revisions, with June's growth slashed to 14,000 from 147,000 and May's lowered to 19,000 from 125,000, highlighting a more prolonged labor market slowdown than initially believed. Euro Zone Growth Exceeds Expectations Economic growth in the Eurozone outperformed expectations in the last quarter, despite global trade uncertainties. This resilience may lessen the need for additional interest rate cuts by the European Central Bank (ECB) (read: Euro Zone Growth Exceeds Expectations: ETFs in Focus). Data from Eurostat released recently showed that GDP in the 20 countries using the euro rose by 0.1% quarter on quarter. This modest growth beat forecasts, which had predicted no change. Strong performances from Spain, France and Ireland helped offset economic contractions in Germany and Italy. U.S. New Home Sales Miss Expectations Sales of new U.S. single-family homes rose marginally in June, as elevated mortgage rates continued to dampen housing market activity. Sales increased by just 0.6% to a seasonally adjusted annual rate of 627,000 units, falling short of economists' expectations for 650,000 units, as polled by Reuters (read: U.S. New Home Sales Miss Expectations: ETFs in Focus). Ethereum Invesco Galaxy Ethereum ETF QETH – Up 31.5% 21Shares Core Ethereum ETF CETH – Up 36.2% Ethereum (ETH) skyrocketed in July, gaining more than 35% last month, as President Donald Trump signed the GENIUS Act into law. Despite tariff-related market headwinds, Ether surged in the month. The cryptocurrency recorded its best two-week performance since August 2021 in mid-July (read: Ethereum ETFs Surging Rapidly: What Lies Ahead?). On July 17, 2025, BlackRock also filed with the SEC to add staking to its ETHA ether exchange-traded fund (ETF), which also boosted the sentiment for crypto's second-largest continues to dominate as the leading DeFi platform, with bullish price predictions fueled by growing interest in staking, tokenization and institutional adoption. Shipping Breakwave Dry Bulk Shipping ETF BDRY – Up 25.8% The underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight. Shipping stocks rebounded as tensions on key trade routes increased in July, pushing up freight rates, especially for tankers (read: Best-Performing ETF Areas of Last Week). Chip Stocks STKd 100% NVDA & 100% AMD ETF LAYS – Up 33.2% NVIDIA and AMD are hot chip stocks currently. AMD is benefiting from robust Data Center and Client revenues that fully offset sluggishness in the Gaming and Embedded segments. AMD stock gained 24.5% past month. Meanwhile, NVIDIA stock gained 9% last week. NVIDIA is benefiting from the strong growth of artificial intelligence (AI) and high-performance, accelerated computing. The growing demand for generative AI and large language models using graphics processing units (GPUs) based on NVIDIA's Hopper and Blackwell architectures is aiding data center revenues. Marijuana AdvisorShares Pure US Cannabis ETF MSOS – Up 27.3% Cannabis stocks rose in July as Trump ally Gaetz indicated that the President is in favor of backing rescheduling. The rescheduling would benefit veterans, scientific research on cannabis, and remove tax burdens for legal marijuana dispensaries. 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 AdvisorShares Pure US Cannabis ETF (MSOS): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
01-08-2025
- Business
- Yahoo
ETF comparison: SPDR S&P 500 vs. Invesco QQQ
Yahoo Finance Markets and Data Editor Jared Blikre, who also hosts Yahoo Finance's Stocks in Translation podcast, does an exchange-traded fund (ETF) comparison between the SPDR S&P 500 (SPY) and Invesco QQQ (QQQ) to see how they contrast. Catch more Stocks in Translation, with new episodes every Tuesday and Thursday. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. Earlier this week, we took a look at ETFs versus mutual funds. And today, in Stocks and Translation, we're going to explore two of the earliest ETFs, SPY and the QQQs, and how the asset class has evolved over the last 30 plus years. And first, a recap of the definition of an ETF. These are shares that trade like a stock, but usually represent a basket of assets tracking an index or a theme, though there are exceptions recently. Unlike mutual funds, which trade only once per day after the close, ETFs can be traded bell to bell like a stock. Now, let's take a look at a timeline that begins in 1993. That was the birth of SPY, and that's what this chart up here is representing. Now, this came to pass in early 1993, and it was kind of the holy grail because there had been attempts before to create an ETF, but they had been struck down by the courts. So, in 1993, SPY is born, and now you can trade the entire ET, the entire S&P 500, just like a little stock with a low amount of money. Then, a few years later, in 1996, we get open-end ETFs, and this is different from the way SPY was constructed. It was a closed investment fund that makes it more difficult to swap out the shares. But even though these open-end ETFs got the green light, not all ETFs would use them in the years to come, and I'll come back to that shortly. Now, in 1998 at the end of the year, we got a very tax-friendly ruling from the SEC, and this has to do with the way that shares are sold or swapped in. Now, in a mutual fund, if you want to change out a share, then you have to sell the stock, and it events, it actually creates a tax event at the end of the year. So, you could get a bill for that, but not in ETFs. They can usually avoid that. So, that was a critical distinction that made ETFs more favorable than most ET, the mutual funds, when it comes to those taxes. Now, let's take a look at the Q here. This launches in May or March of 1999. Uh, kind of a big day there because now you could trade the Nasdaq 100 as bubble was still going up. It would have another year or so, and then we would see that nasty fall. By the way, the Nasdaq 100 ETF QQQ, that would lose about 82%, and we'll get to that stat in a second. But fast forward a few years, and in 2004, we get GLD. This is the first physical gold ETF, and the first time we've had a commodity in ETF form. Quickly thereafter, we would get SLV for silver, but then we get others for wheat and coffee and all kinds of different things, all kinds of different derivatives. And then a few years later after that, we got active ETF managers in the game. So, now this is kind of like hedge fund territory. This came in 2008, but by the time we got into the mid-teens, Kathy Wood would use this for the Ark Innovation Fund, and she would actively manage that ETF, kind of like a hedge fund. Now, we're going to skip forward a few years in time, and let's see. We, we just did that one. Here, we're going to go to the end of the teens here, and we have semi-transparent ETFs approved. So, for some of these active funds or actively traded funds, uh, if you wanted to protect your secret sauce instead of disclosing all your holdings at the end of the day, this would allow you to do that. And that would kind of pave the way for some more active ETFs in the coming years. We still have mostly passive, but it is an improving game for the active managers. And then taking a look just a short time later, we have the ETF rule arise. This was kind of like the holy grail for ETS, because previous to this, it was very difficult to get these things launched. You had to get, you had to apply for regulatory relief, and this just streamlined the entire process. And this would really explode the ETF volume, the new ETF launches over the next few years. Finally, not finally, but almost to the end here, we got 2022 single stock leverage ETFs and also inverse ETFs. Those would join the game, uh, Tesla and Nvidia, Broadcom, you name it. We now have, I believe, close to 100, if not more, of these. And these are tracked by our friend Todd Sohn over at Strategas ETF Management. He comes out with some interesting figures each week on that. And then in the beginning of 2024, we got those spot Bitcoin ETFs. Prior to that, we had Bitcoin ETFs that were based on futures, but these were, would really allow investors for the first time to track the actual price of Bitcoin in their 401Ks and just have access to it like any other stock. And the last item here, this is not a big sweeping, but, uh, regular, this is not a big sweeping change to the industry, but Invesco is asked, has to convert the Nasdaq 100, and that's its Qs fund tracker, from a fixed unit investment trust to an open-end ETF so that the firm, not just the custodian and Nasdaq, can share in the fees. And this goes back to that early decision in 1999 to form it as a unit investment trust, which is a closed-end fund instead of an open-end fund. Uh, at the end of the day, Invesco's left, left hundreds of millions of dollars on the table because of that. But, uh, we'll get to some details on that in a second. First, next, I want to show you the differences between SPY and Qs over the year and some of the different stats that have evolved. So, we've already covered the launch dates, but look at the total price return of SPY. That's up over 1300% since 1993, and since 1999, we have the Qs up 1,007%. When it comes to the worst selloff, that would be the global financial crisis, minus 56% for SPY. And then I think I cited this before, 83% in 2000 to 2002 for the Qs there. That was bust. And if you take a look at the management fee, basically half for SPY that of the Qs, 0.0945 if you're going to add a few decimal points. And the volume on SPY, I believe it's still the heaviest traded ETF in the solar system, 67 million shares per day versus 40 million for the Qs. And then if you were to convert that to a dollar amount, that's $42 billion every single day, and about half of that, or $23 billion, for the Qs. Now, the shareholders of the Qs, they're going to vote on October 24th, fourth, whether to modernize the ETF. And if they say yes, then the trust becomes an open-end fund, letting Invesco keep most of the management fee worth over $600 million a year based on today's asset base. So, if the shareholders give the green light, the changes could go into effect in early 2026. And tune in to the Stocks and Translation podcast for more jargon-busting deep dives. New episodes can be found every Tuesday and Thursday on Yahoo Finance's website, or wherever you find your podcast.
CNBC
01-08-2025
- Business
- CNBC
Carter Worth highlights level of support for S&P 500 ETF as market sells off
(Check out Carter's for actionable recommendations and live nightly videos.) Here's a brief examination of key downside levels for the SPDR S & P 500 ETF (SPY). In the context of the current sell-off in the market (the SPY at its low today is -3.16% from Thursday's all-time high of $639.85). Support comes into play (begins) at pre-tariff sell-off all-time high of Feb. 19 at roughly the $631 level. A drawdown to said level would represent a 4.1% decline from Thursday's all-time high. Importantly, support is not a plywood board or a concrete floor, but rather is a mattress top. Support begins at the $631 level, and as is so often the case when a stock, index, currency or commodity sells off to support, said securities will sink into support before finding support (will sink into the mattress further). In fact, support comes into play all the way down to around the $575 level. See second chart below. A drawdown to said level would represent a 10.10% decline from Thursday's all-time high. Meanwhile, the mid-point of support comes into play at the $593 level. A drawdown to $593 would represent a 7.25% decline from Thursday's all-time high. Bottom line, the current sell-off is a mere 3.16% and a mere 2 days in duration. We would anticipate further downside in the days/weeks ahead and would take measures accordingly. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
