Wall Street recorded a moderate performance last week. The S&P 500 (down 0.14%), the Dow Jones (down 0.2%), the Nasdaq Composite (down 0.3%) and the Russell 2000 (up 0.02%) – all delivered more or less flat returns. Year 2022 turned out to be the worst year since 2008 for the S&P 500. But the final week of the year was not that bad. This was probably because of the Santa Clause rally.
The Santa Claus Rally refers to the jump in stock prices in the week between Christmas and New Year’s Day. A consensus carried out from 1950 to 2021 has revealed that December offered positive returns in 54 years and negative returns in 18 years, with an average return of 1.42%, one of the best seen in a year, per moneychimp.com. It is believed that a Santa Clause Rally normally drives markets this time of the year.
Though Wall Street did not record a stupendous Santa rally this year, returns were still decent. Against this backdrop, let us discuss a few winning ETF areas of last week.
Platinum
iPatha.B Platinum Subindex TR ETN PGM – Up 9.9%
Graniteshares Platinum Shares ETF PLTM – Up 9.8%
Physical Platinum ETF (PPLT) – Up 9.4%
Shortage fears also supported prices. Platinum surged to its best quarter since 2008, per CNBC. China has imported excessive amounts of platinum since 2019, according to the World Platinum Investment Council, quoted on CNBC. The Council anticipates a platinum deficit in 2023, with demand growing by 19%, while supply increasing by just 2%.
Interest Rate Hedge
Simplify Interest Rate Hedge ETF PFIX – Up 7.3%
Advocate Rising Rate Hedge ETF RRH – Up 6.4%
The benchmark U.S. treasury yield started the week at 3.75% and ended the week at 3.88%. The rise in yields contributed to the rally in the interest-rate hedge ETFs.
Cannabis
Listed Funds Trust Roundhill Cannabis ETF WEED – Up 6.5%
ETFMG U.S. Alternative Harvest ETF MJUS – Up 6%
The segment rose, thanks to the news. Per a Motley Fool article, New York state is now open for recreational marijuana business. A dispensary called Housing Works Cannabis Co. in Manhattan is the first retail outlet in the state to sell recreational marijuana. This marked the launch of the retail marijuana business in New York.
China Healthcare
KraneShares MSCI All China Health Care Index ETF KURE – Up 7%
Loncar China Biopharma ETF CHNA – Up 5%
The worst COVID-19 outbreak in China probably made the space a winner. Cities across China have been installing hospital beds and building fever screening clinics. No wonder, bio-pharma and healthcare companies have been making the most of this emergency.
Oil Services
Vaneck Oil Services ETF OIH – Up 4.5%
The segment was bullish thanks to the upbeat oil market. An easing of the dollar, continued risks of supply due to the prolonged supply-chain crisis, price caps on Russian crude imposed by the G7 nations and Russia’s decision to cut production – all contributed to the gains in energy ETFs. Given the favorable upstream business scenarios, it is highly likely that capital spending will ramp up in both North American and international markets.
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VanEck Oil Services ETF (OIH): ETF Research Reports
iPath Series B Bloomberg Platinum Subindex Total Return ETN (PGM): ETF Research Reports
GraniteShares Platinum Trust (PLTM): ETF Research Reports
Loncar China BioPharma ETF (CHNA): ETF Research Reports
KraneShares MSCI All China Health Care Index ETF (KURE): ETF Research Reports
ETFMG U.S. Alternative Harvest ETF (MJUS): ETF Research Reports
Simplify Interest Rate Hedge ETF (PFIX): ETF Research Reports
Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports
Roundhill Cannabis ETF (WEED): ETF Research Reports
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