After logging its worst first-half performance in decades on Russia’s invasion of Ukraine, tightening monetary policy and surging prices, the U.S. stock market was off to a strong start in July. A strong jobs report, a better-than-expected Q2 earnings picture and a drop in commodity prices brought back the lure for riskier assets. All the three main indexes have been in green this month. Notably, the S&P 500 Index has been hovering at the highest level since Jun 9.
While the rally has been broad-based, the most beaten-down sector like technology and consumer discretionary took charge. F
irst Trust SkyBridge Crypto Industry & Digital Economy ETF
CRPT
,
VanEck Vectors Digital Transformation ETF
DAPP
,
Bitwise Crypto Industry Innovators ETF
BITQ
,
VanEck Digital Assets Mining ETF
DAM
, and
Global X Blockchain ETF
BKCH
have been the show stealers over the past week.
A slew of earnings results from Netflix
NFLX
and Tesla
TSLA
have bolstered investors’ confidence to tap the beaten-down prices. Another big news is the European Central Bank’s (ECB) interest rates hike by 0.50% for the first time since 2011 and the largest increase since 2000 (read:
Tesla Mixed Q2 Earnings Put These ETFs in Focus
).
Additionally, job growth accelerated at a much faster pace than expected in June, indicating the strength in the labor market. The U.S. economy added 372,000 jobs in June, easing worries of an impending recession. The unemployment rate was 3.6%, while average hourly earnings grew 5.1% in June from a year earlier. Meanwhile, Americans have become slightly optimistic about the economy as consumer sentiment has risen from an all-time low.
The latest Fed minutes also showed that the central bank is committed to bringing down inflation, bolstering investors’ confidence.
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) – Up 35.6%
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge views are driving cryptocurrency, crypto assets and digital economies related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem.
First Trust SkyBridge Crypto Industry holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $25.9 million in its asset base and trades in an average daily volume of 75,000 shares.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 34.7%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 25 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 99,000. DAPP has accumulated $33.4 million in its asset base.
Bitwise Crypto Industry Innovators ETF (BITQ) – Up 33.2%
Bitwise Crypto Industry Innovators ETF offers exposure to the companies leading the new crypto economy. It tracks the Bitwise Crypto Innovators 30 Index, which measures the performance of the companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele (read:
Bitcoin to Soar 40% to $28K by Year-End? ETFs to Play
).
Holding 30 stocks in its basket, Bitwise Crypto Industry Innovators ETF is concentrated on the top three firms with nearly double-digit exposure each. It charges 85 bps in annual fees from investors and trades in an average daily volume of 157,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $67 million in its asset base.
VanEck Digital Assets Mining ETF (DAM) – Up 32.1%
VanEck Digital Assets Mining ETF offers exposure to companies that are participating in the digital assets mining economy by tracking the MVIS Global Digital Assets Mining Index. It holds 25 stocks in its basket with a well-diversified portfolio as each accounts for no more than 6.5% share.
VanEck Digital Assets Mining ETF has attracted $1.6 million in its asset base since its inception in May. It charges 50 bps in annual fees and trades in volume of under 1,000 shares per day on average.
Global X Blockchain ETF (BKCH) – Up 32%
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket with a double-digit allocation to the top firm (read:
Top & Flop Zones of First Half 2022 and Their ETF
).
Global X Blockchain ETF has gathered $61 million in its asset base and trades in an average daily volume of 175,000 shares. It charges 50 bps in annual fees.
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