ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook Channel
  • 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. Portfolio Strategies Channel
  2. U.S. Stock ETFs Wobble as Rising Yields Encumber Tech
Portfolio Strategies Channel
Share

U.S. Stock ETFs Wobble as Rising Yields Encumber Tech

Max ChenNov 15, 2021
2021-11-15

On Monday, U.S. markets and stock exchange traded funds were mixed as traders refocused on yields and inflation.

The Invesco S&P 500 Equal Weight ETF (RSP A-), which follows the S&P 500 Equal Weight Index (EWI), rose 0.2% on Monday. Meanwhile, the S&P 500 was up flat, the Dow Jones Industrial Average was unchanged, and the Nasdaq Composite fell 0.2%.

“We’re seeing a recovery in the economy, seeing rising wages and the Fed is moving toward tighter monetary policy, so it’s inevitable we’re going to see yields moving higher,” David Russell, vice president of Market Intelligence at TradeStation Group, told the Wall Street Journal.

The Nasdaq dipped the most among its peers after technology stocks retreated in light of rising Treasury yields, which typically weighs on the sector since they discount future earnings, Reuters reports. On the other hand, the financial sector benefited from the rising rates.

“Watch for interest rates to apply some pressure to the tech stocks. So if we do get higher rates – tech will slow down a little bit and a rotation to financials makes sense in that scenario. Higher rates, banks make more money,” Jay Pestrichelli, chief executive of investment firm ZEGA Financial, told Reuters.

Companies that have reported third quarter earnings so far have broadly beaten expectations, supporting the ongoing rally in stocks. However, the elevated inflation levels have also weighed on government debt, a main alternative to stocks.

“It seems as if the equity markets are kind of a bit detached from other markets,” Jim Besaw, chief investment officer of GenTrust, told the WSJ.

Investors will also be watching out for earnings reports from several major retailers, including Walmart Inc., Target Corp, Home Depot Inc., and Macy’s Inc. Observers will be looking for how retailers are responding to rising prices and ongoing supply chain hurdles.

“Inflation is probably going to end up helping (retailers) somewhat because some of these big-box companies are able to … raise prices and maintain pretty close to their margin levels,” Robert Pavlik, senior portfolio manager at Dakota Wealth, told Reuters.

For more news, information, and strategy, visit the Portfolio Strategies Channel.

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