ETF Winners And Losers: Mid-Cap Returns - Sustainability Fund Up Big, Fund Linked To Japan's Economy Drops
Portfolio Pulse from Johnny Rice
Mid-cap ETFs with AUM between $2 billion and $10 billion were screened for weekly performance. iShares Global Clean Energy ETF (ICLN) and SPDR S&P Regional Banking ETF (KRE) emerged as winners with 8.59% and 8.10% gains respectively. WisdomTree Japan Hedged Equity Fund (DXJ) and Alerian MLP ETF (AMLP) were the losers, dropping 2.24% and 0.69%. ICLN's top holdings include First Solar, Inc. (FLSR) and Enphase Energy, Inc. (ENPH), while KRE's include Western Alliance Bancorp (WAL) and Zions Bancorporation (ZION). DXJ's largest holdings are in Japanese companies not listed in the US, and AMLP's are Energy Transfer LP (ET) and MPLX LP (MPLX).
December 18, 2023 | 10:32 pm
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POSITIVE IMPACT
iShares Global Clean Energy ETF (ICLN) saw a significant weekly gain of 8.59%, despite being down 22.41% YTD. The fund's focus on sustainable energy solutions and technologies, with major holdings in FLSR and ENPH, contributed to its performance.
ICLN's recent gain is significant and reflects investor interest in sustainable energy, which could lead to continued short-term positive momentum. However, the YTD loss indicates potential volatility.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
SPDR S&P Regional Banking ETF (KRE) is up 8.10% for the week, showing resilience in the regional banking sector despite recent bank collapses. The fund's equal-weighted index approach and holdings in WAL and ZION are notable.
KRE's performance suggests a recovery in investor confidence in regional banks, which could lead to short-term positive price action. However, the sector's recent instability may still pose risks.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100
NEGATIVE IMPACT
Alerian MLP ETF (AMLP) saw a minor weekly drop of 0.69%, but has a significant YTD gain of 19.91%. The fund's focus on the energy MLP sector and high concentration in ET and MPLX are central to its performance.
AMLP's slight weekly decline may not deter investors given its strong YTD performance, which could suggest a bullish outlook for the energy MLP sector. However, the high concentration in a few holdings could increase risk.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 100
NEGATIVE IMPACT
WisdomTree Japan Hedged Equity Fund (DXJ) experienced a weekly decline of 2.24%, but is up 33.16% YTD. The fund's hedging strategy against the Yen and exposure to the Japanese market are key factors.
DXJ's weekly loss may concern short-term investors, but its strong YTD performance could indicate underlying strength in the Japanese market. Currency hedging may also attract investors seeking to mitigate forex risk.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 100