Chicago, IL – January 12, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Valkyrie Bitcoin Miners ETF WGMI, VanEck Digital Assets Mining ETF DAM, Global X Blockchain ETF BKCH, VanEck Vectors Digital Transformation ETF DAPP and Bitwise Crypto Industry Innovators ETF BITQ.
Here are highlights from Wednesday’s Analyst Blog:
After the worst year, the technology sector showed a strong comeback at the start of 2023. Hopes that the Fed will soon wrap up its inflation-fighting campaign have bolstered the risk appetite. Optimism over cooling inflation has compelled investors to buy beaten-up technology stocks.
The technology-heavy Nasdaq Composite Index rallied 2.6% in the initial days of the year, outperforming the other major indices. The S&P 500 and the Dow Jones Industrial Average gained 2% and 1.7%, respectively. As such, tech ETFs have been leading higher, with the following funds' gains from +28% to +40%.
Inflation has been easing and consumer confidence is rising. The latest job data showed a deceleration in wage growth, which gave investors hope that the Fed could ease off on its interest-rate increases, resulting in a boost to the tech shares.
Markets are expecting that the Fed could soon signal an end to its rate hiking cycle. A moderation in wage increases and a decline in U.S. services activity in December signal a slowdown in the U.S. economy and buoyed hopes of a less hawkish stance from the Fed. Per the latest data, traders are betting on a 25-bps rate hike at the central bank's upcoming policy meeting in February, with the rate seen slightly below 5% by June (read: 6 Sector ETFs That Show Promise After December Jobs Data).
After a massive decline, tech stocks have become extremely cheap at current valuations. The top 10 tech stocks shed a combined $4.6 trillion in market cap in 2022 as interest rates climbed and growth outlooks soured. The so-called FAAMG cohort — Facebook parent Meta, Amazon, Apple, Microsoft and Google parent Alphabet — lost 38% of its market value.
Further, the upside to the technology sector is confirmed by the Zacks Sector Rank in the top 30%, with more than 60% of the industries ranking in the top 37%. This suggests continued outperformance in the sector for the coming months.
Valkyrie Bitcoin Miners ETF is an actively managed ETF that will invest at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF is an actively managed ETF that holds 24 stocks in its basket with an expense ratio of 0.75%.
Valkyrie Bitcoin Miners ETF has amassed $1.7 million in its asset base while trading in an average daily volume of 5,000 shares.
VanEck Digital Assets Mining ETF offers exposure to companies participating in the digital assets mining economy by tracking the MVIS Global Digital Assets Mining Index. It holds 20 stocks in its basket with a well-diversified portfolio, as each accounts for no more than 9% share.
VanEck Digital Assets Mining ETF has attracted $0.7 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 (read: 5 Winning ETF Ideas for Your Portfolio in 2023).
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 24 stocks in its basket with a double-digit allocation to the three top firms.
Global X Blockchain ETF has gathered $41.3 million in its asset base and trades in an average daily volume of 124,000 shares. It charges 50 bps in annual fees.
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 20 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 94,000. DAPP has accumulated $19 million in its asset base.
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: Tech ETFs 2022 Low-Down: Dividend Wins, Cryptocurrency Loses).
Holding 27 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 148,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $36.5 million in its asset base.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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