ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Night Effect Channel
  2. The Night Effect Has Enhanced April Returns
Night Effect Channel
Share

The Night Effect Has Enhanced April Returns

Elle CarusoApr 06, 2023
2023-04-06

Over the past 20 years, the night effect has been particularly prominent during April.

The overnight session often behaves better than the day session in that it frequently captures much of the upside while avoiding significant downturns. This is referred to as the night effect, a phenomenon whereby equities have historically performed better when local markets are closed than when markets are open.

Looking at April returns for the SPDR S&P 500 ETF Trust (SPY A) between 2003 and 2022, the average return of the night trading session has been 1.95%. Meanwhile, the average day trading session return is 0.44%, according to data from NightShares.

During last year’s challenged market landscape, the day session gave up 7.63% in April while the night session declined just 1.24%. In April 2020 when markets recovered from the stock market crash, the day session contributed just 1.49% of gains, with 11.04% of gains coming from the night session.

Academic research conducted over the past 20 years has suggested multiple reasons why the phenomenon exists. The most common rationale focuses on the timing of information flow, risk management practices, and liquidity premiums arising from differences in the trading volumes between the day and night sessions.

The NightShares ETF suite stands out as an innovative approach to equity investing, offering ETF investors access to the night effect for the first time.

Investors can capture the night effect without giving up returns generated during the day with the NightShares 500 1x/1.5x ETF (NSPL B+). NSPL seeks to amplify the night effect while also offering daytime trading exposure. NSPL seeks to deliver 1x (100% correspondence) to the S&P 500 during the day, providing exposure to equity performance that advisors and investors are familiar with. The fund tilts toward the night, providing 1.5x, or 150% of the portfolio performance at night.

For more news, information, and analysis, visit the Night Effect Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X