How To Navigate Market Volatility: 5 ETFs That Strengthen Your Portfolio During Stock Turmoil
Portfolio Pulse from Piero Cingari
Global equity markets are under pressure due to fears of a potential U.S. recession, leading to significant declines in major indices. However, certain ETFs have rallied amid the turmoil, including Invesco CurrencyShares Japanese Yen Trust (FXY), iShares 20+ Year Treasury Bond ETF (TLT), ProShares Trust VIX Short-Term Futures ETF (VIXY), ProShares UltraPro Short QQQ (SQQQ), and ProShares UltraPro Short Russell 2000 (SRTY).
August 05, 2024 | 4:22 pm
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POSITIVE IMPACT
The Invesco CurrencyShares Japanese Yen Trust (FXY) has surged by 6.6% over the past four sessions due to declining interest rate expectations in the U.S., reducing the dollar's carry trade advantage against the yen.
The FXY ETF benefits from declining U.S. interest rate expectations, which reduce the dollar's carry trade advantage against the yen, making it a safe-haven asset during market turmoil.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The ProShares UltraPro Short QQQ (SQQQ) has surged by over 23% in the past three sessions, aiming to achieve investment results equal to three times the inverse of the daily performance of the Nasdaq 100 index.
The SQQQ ETF benefits from its leveraged inverse strategy, which allows it to gain significantly during declines in the Nasdaq 100 index, making it attractive during market selloffs.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
The ProShares UltraPro Short Russell 2000 (SRTY) has rallied by nearly 33% in the last three sessions, designed to seek an investment performance equal to three times the inverse of the daily move of the Russell 2000 index.
The SRTY ETF benefits from its leveraged inverse strategy, which allows it to gain significantly during declines in the Russell 2000 index, making it attractive during market selloffs.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) has posted gains for eight consecutive sessions, surging over 3.1% last Friday amid fears of a cooling U.S. labor market.
The TLT ETF benefits from its status as a safe-haven asset, attracting investors amid fears of a cooling U.S. labor market and potential recession.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The ProShares Trust VIX Short-Term Futures ETF (VIXY) skyrocketed by over 20% on Monday alone, and by nearly 66% over the last three sessions, reflecting heightened market volatility.
The VIXY ETF benefits from increased market volatility, as it is designed to track short-term futures on the CBOE Volatility Index (VIX), making it a popular choice during market turmoil.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90