10 ETFs Investors Secretly Bought Before The Fed's Make-Or-Break Interest Rate Call
Portfolio Pulse from Piero Cingari
Investors are preparing for the Federal Reserve's anticipated interest rate cut by shifting their portfolios towards ETFs that benefit from lower rates. Notable ETFs with significant inflows include iShares MSCI EAFE Value ETF, SPDR Portfolio S&P 500 Value ETF, SPDR Gold Shares, and VanEck Semiconductor ETF. The market is divided on whether the Fed will cut rates by 25 or 50 basis points, with JPMorgan Chase & Co. predicting a larger cut.
September 17, 2024 | 7:39 pm
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POSITIVE IMPACT
iShares MSCI EAFE Value ETF saw significant inflows as investors anticipate benefits from a lower interest rate environment.
Investors are moving towards value-oriented ETFs like EFV in anticipation of a rate cut, which typically benefits such assets.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPDR Gold Shares is benefiting from strong inflows as gold prices hit record highs, driven by rate cut expectations.
Gold is a traditional beneficiary of lower interest rates, leading to increased investor interest in GLD.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75
POSITIVE IMPACT
iShares Russell 2000 ETF sees inflows as investors focus on small-cap companies poised to benefit from lower rates.
Small-cap companies are expected to benefit from declining borrowing costs, leading to increased interest in IWM.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
ProShares Ultra QQQ is gaining interest as investors speculate on a larger rate cut, betting on Nasdaq 100 performance.
Investors are pursuing leveraged strategies on the Nasdaq 100, anticipating gains from a potential 50-basis-point cut.
CONFIDENCE 80
IMPORTANCE 55
RELEVANCE 65
POSITIVE IMPACT
VanEck Semiconductor ETF is seeing substantial inflows as investors bet on tech sector gains from potential rate cuts.
The tech sector, particularly semiconductors, is expected to benefit from lower borrowing costs, driving inflows into SMH.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SPDR Portfolio S&P 500 Value ETF is attracting investors looking for stability amid expected rate cuts.
The ETF is seen as a defensive hedge, attracting inflows as investors anticipate a shift in monetary policy.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
ProShares UltraPro QQQ is attracting speculative interest as investors bet on a larger Fed rate cut.
The ETF targets three times the daily performance of the Nasdaq 100, appealing to investors speculating on a significant rate cut.
CONFIDENCE 80
IMPORTANCE 55
RELEVANCE 65