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708800.0 | 2022-09-22 00:00:00 UTC | A Look Beyond the Fundamentals With Trend Following | DBMF | https://www.nasdaq.com/articles/a-look-beyond-the-fundamentals-with-trend-following | nan | nan | Fundamental investing and the traditional 60/40 portfolio have met their match this year as equities and bonds have fallen in tandem, driven into bear markets by soaring, persistent inflation and aggressive interest rate hikes by the Fed. One of the few trends that have risen to the surface and performed strongly in 2022 has been one that invests around, well, trends.
Trend following doesn’t invest based on the forward-looking price-to-earnings of a company, or on any of the traditional metrics by which companies are measured. Instead, it invests in what is actually happening in markets compared to market predictions that advisors and analysts try to make.
It’s a style of investing that removes the perception of how an asset might perform from the equation and is entirely data-driven based on how an asset is currently performing. Specialized analysts known as quants utilize a barrage of models and equations to anticipate how an asset or class of assets is most likely to trend based on an asset’s current performance. It goes directly against the adage of “buy and hold” as it trades constantly, continuously altering its allocations as it takes long or short positions on any number of assets and yet this year, trend following is performing when little else is.
Removing Sentiment From the Equation
Trend following has been dubbed “crisis alpha” for a reason as it performs best and offers the strongest returns in times of strong market volatility and dislocation. Often investors can be somewhat slower to respond to market changes, holding onto positions that might not serve them best in the current environment in the hopes that there will be a return to the previous market circumstances that benefited those positions.
This has been especially true this year coming off essentially a decade-long bull run for the traditional 60/40 portfolio. Bonds have failed to offer protection from falling stocks within portfolios and advisors are increasingly looking to alternatives for portfolio hedges and uncorrelated returns.
Managed futures are shining in this regard as they maintain a low to zero correlation to equities and bonds because they transact in the futures market. Managed futures hedge funds have performed strongly, as have ETFs, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF) which seeks to capture the average return of the 20 largest managed futures hedge funds. By offering the strategy within the cost-efficient ETF wrapper, DBMF seeks to provide similar performance while also preserving more of the returns that are captured via significantly lower management fees. Year-to-date DBMF is up 30.51% as of 09/21/22.
2022 Positions Have Reaped Major Returns
DBMF has been able to capitalize on some major changes happening globally this year, going long and capturing the up spike in crude oil in the first half of the year, short Treasuries when REITs spiked, while also taking advantage of the rapid depreciation of the Japanese yen and other currencies due to a strong U.S. dollar.
“When you talk about the craziest things in the market,” Andrew Beer, co-portfolio manager of DBMF and managing member of Dynamic Beta investments, told Bloomberg, “I think if you’d asked FX strategists earlier this year, ‘The yen is at 115 — where could it possibly go?’ The guy who said 125 would’ve been laughed out of the room.” That’s exactly what’s happened to the yen, however, and the current conversion is roughly 142 yen to the USD. DBMF has captured that.
It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.95%.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Managed futures hedge funds have performed strongly, as have ETFs, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF) which seeks to capture the average return of the 20 largest managed futures hedge funds. By offering the strategy within the cost-efficient ETF wrapper, DBMF seeks to provide similar performance while also preserving more of the returns that are captured via significantly lower management fees. Year-to-date DBMF is up 30.51% as of 09/21/22. | Managed futures hedge funds have performed strongly, as have ETFs, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF) which seeks to capture the average return of the 20 largest managed futures hedge funds. By offering the strategy within the cost-efficient ETF wrapper, DBMF seeks to provide similar performance while also preserving more of the returns that are captured via significantly lower management fees. Year-to-date DBMF is up 30.51% as of 09/21/22. | Managed futures hedge funds have performed strongly, as have ETFs, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF) which seeks to capture the average return of the 20 largest managed futures hedge funds. “When you talk about the craziest things in the market,” Andrew Beer, co-portfolio manager of DBMF and managing member of Dynamic Beta investments, told Bloomberg, “I think if you’d asked FX strategists earlier this year, ‘The yen is at 115 — where could it possibly go?’ The guy who said 125 would’ve been laughed out of the room.” That’s exactly what’s happened to the yen, however, and the current conversion is roughly 142 yen to the USD. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | Managed futures hedge funds have performed strongly, as have ETFs, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF) which seeks to capture the average return of the 20 largest managed futures hedge funds. By offering the strategy within the cost-efficient ETF wrapper, DBMF seeks to provide similar performance while also preserving more of the returns that are captured via significantly lower management fees. Year-to-date DBMF is up 30.51% as of 09/21/22. | fcb6713b-1fd5-47a1-974c-54a9bb6612f7 |
708801.0 | 2022-09-20 00:00:00 UTC | Manage Fed Interest Rate Hikes With DBMF | DBMF | https://www.nasdaq.com/articles/manage-fed-interest-rate-hikes-with-dbmf | nan | nan | The odds of a 0.75% interest rate hike from the Federal Reserve meeting tomorrow are all but cemented according to analysts. Markets remain leery of what the guidance coming from the Fed might be as the central bank officially moves into a restrictive monetary policy. The market downturn has extended through trading on Tuesday as uncertainty continues to drive volatility.
All attention will be on the guidance coming from Federal Reserve Chair Jerome Powell after the Federal Open Market Committee meeting on Wednesday.
“It’s not what they do, it’s what they say. This is our first actual tightening road map. We had theoretical road maps up until now, but from the Fed’s point of view, they’re crossing into a world of tightening. That’s an important thing,” Diane Swonk, chief economist at KPMG, told CNBC.
August’s higher CPI report alongside the resiliency of the jobs market has led analysts and economists to raise the terminal rate for the rate hikes to 4.5% by April, a 0.5% increase from expectations before the August inflation report. The current range is 2.25%-2.50%, which the Fed deems as neutral territory. This month’s rate hike will officially shift into restrictive territory.
“We will be moving into no man’s land,” Swonk said. “We actually haven’t tightened policy to fight inflation since the early 1980s. Their goal is for a prolonged slowdown that grinds inflation slowly down and only gradually increases the unemployment rate. Whether they get there is another issue.”
Investing for Volatility With Managed Futures
The Fed has indicated that it will need to see strong, consecutive signals that inflation is falling before it will be willing to back off from interest rate increases. Volatility is expected to continue as the labor market remains strong while growth drops off.
Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds and has nearly $750 million in AUM.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.95%.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | 9d3cbc2c-f735-4f66-9b75-3c5b4ae74bef |
708802.0 | 2022-09-15 00:00:00 UTC | Andrew Beer Digs Into DBMF’s Performance YTD | DBMF | https://www.nasdaq.com/articles/andrew-beer-digs-into-dbmfs-performance-ytd | nan | nan | After a decade of lackluster interest and performance, managed futures have more than demonstrated their worth and value this year in a macroenvironment of volatility and changing market regimes. Andrew Beer, managing member of Dynamic Beta investments and co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), spoke with Todd Rosenbluth, head of research at VettaFi, about the fund's performance and the managed futures space in a recent webcast hosted by VettaFi.
Dynamic Beta investments is the subadvisor of the fund, and Beer has extensive background working in the hedge fund industry and has long believed in the potentials of the strategies that hedge funds utilize. Hedge fund investing carries a significant barrier to entry, however (individual investors must be an accredited investor or an institutional one), and comes with expensive fees.
Managed futures have been a strategy locked away behind hedge funds for the last decade and utilize data trends to determine how to invest in various assets (equities, currencies, fixed income) and what kinds of positions to take on them. They perform strongest in times of market volatility, and dislocation and Beer explained the reasoning behind bringing the strategy to the ETF wrapper.
"We're somewhat unique in the space in that we didn't come at this as a bunch of guys who built these strategies and tried to make them better over time, rather we were thinking about how do we access the diversification benefits of the strategy… but how do we better than actual hedge funds by cutting out fees, how do we reduce the risk of having a blow-up that makes it difficult for us to hold the investment," Beer explained.
Image source: Dynamic Beta investments Webcast
It's been a stellar year for DBMF: the fund started with just $65 million in AUM in January and is now closing in on nearly $700 million AUM. The fund had become a strong diversification play for portfolios this year and has offered significant returns (28.99% YTD as of 09/14/22), and was one of the few stocks to actually close higher on September 13, 2022, when markets plummeted.
Beer went on to explain that DBMF was created as a diversifier for model portfolios.
"If you are running an ETF-based model portfolio, I think the question is if you want to diversify out of traditional assets and you're looking for things that could really help to protect your portfolio in periods like this while also making money during normal times, on our side we were hard pressed to find anything better than the strategy and we're very pleased to say that we believe DBMF has been able to deliver that so far," Beer said.
Under the Hood of DBMF
DBMF invests across ten different core futures markets: three different equity futures contracts, three different rates futures contracts, two currency futures contracts, and two different commodity contracts.
"As a philosophical matter, when we decide what we want to invest in, we believe that market depth and liquidity are really, really valuable, precious things because it allows us to go in and out of positions with virtually no trading costs," Beer explained. "It means that if the cracks underneath the market continue to spread, more liquidity flows into the stuff that we're trading."
This year that had meant that the fund capitalized on three big trades that have created much of its returns: DBMF was long crude oil early enough that it captured the strong returns in the early part of 2022, it was short Treasuries when REITs spiked and then has played the strong U.S. dollar in the futures market to reap returns. 2022 has proven to be a perfect storm for extremely strong managed futures performance as both bonds and equities have moved in correlation while managed futures remain uncorrelated to both.
"When managed futures does the best is when the unexpected or the seemingly impossible keeps happening in markets," Beer said. "We think the diversification argument has really been cemented this year, and there's no reason to believe that the returns that we've realized are going to reverse or even diminish over time just given the market that we're in."
It's a strategy that isn't limited to extreme volatility, however, and can perform just as efficiently in deflationary environments, recessions, and more as it is a data-driven strategy reliant on identifying and capitalizing on trends, no matter if that's in a downward or upward moving market.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Andrew Beer, managing member of Dynamic Beta investments and co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), spoke with Todd Rosenbluth, head of research at VettaFi, about the fund's performance and the managed futures space in a recent webcast hosted by VettaFi. Image source: Dynamic Beta investments Webcast It's been a stellar year for DBMF: the fund started with just $65 million in AUM in January and is now closing in on nearly $700 million AUM. Beer went on to explain that DBMF was created as a diversifier for model portfolios. | Andrew Beer, managing member of Dynamic Beta investments and co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), spoke with Todd Rosenbluth, head of research at VettaFi, about the fund's performance and the managed futures space in a recent webcast hosted by VettaFi. Under the Hood of DBMF DBMF invests across ten different core futures markets: three different equity futures contracts, three different rates futures contracts, two currency futures contracts, and two different commodity contracts. Image source: Dynamic Beta investments Webcast It's been a stellar year for DBMF: the fund started with just $65 million in AUM in January and is now closing in on nearly $700 million AUM. | Andrew Beer, managing member of Dynamic Beta investments and co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), spoke with Todd Rosenbluth, head of research at VettaFi, about the fund's performance and the managed futures space in a recent webcast hosted by VettaFi. Under the Hood of DBMF DBMF invests across ten different core futures markets: three different equity futures contracts, three different rates futures contracts, two currency futures contracts, and two different commodity contracts. This year that had meant that the fund capitalized on three big trades that have created much of its returns: DBMF was long crude oil early enough that it captured the strong returns in the early part of 2022, it was short Treasuries when REITs spiked and then has played the strong U.S. dollar in the futures market to reap returns. | Andrew Beer, managing member of Dynamic Beta investments and co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), spoke with Todd Rosenbluth, head of research at VettaFi, about the fund's performance and the managed futures space in a recent webcast hosted by VettaFi. Image source: Dynamic Beta investments Webcast It's been a stellar year for DBMF: the fund started with just $65 million in AUM in January and is now closing in on nearly $700 million AUM. Beer went on to explain that DBMF was created as a diversifier for model portfolios. | a08f0fed-7fd0-4bf5-9e0e-2de9e911dec1 |
708803.0 | 2022-09-13 00:00:00 UTC | As Markets Plummet, Focus on the Technicals With DBMF | DBMF | https://www.nasdaq.com/articles/as-markets-plummet-focus-on-the-technicals-with-dbmf | nan | nan | Markets fell hard on Tuesday after the release of the August consumer price index report, logging the worst single-day of losses since June 2020. The Dow Jones fell over 1,200 points, the S&P 500 closed down 4.32% and the Nasdaq Composite dropped 5.16%
August’s CPI reflected a broad inflation increase of 0.1% month-over-month and 8.3% over the last year, with core inflation rising 0.6% month-over-month, both higher than analyst expectations and certainly market ones. It’s these very investor expectations that could have resulted in such losses, according to Art Cashin, UBS director of floor operations, leading to the potential for markets to possibly revisit the June 2022 lows for markets.
“Certainly the 3900 is just so tempting, and you’re pulling back below the 50-day moving average here. It’s very much about the technicals. It’s not so much that one number made the economy go topsy-turvy. It meant a lot of guys who were making preliminary favorable bets got caught off base,” Cashin told CNBC’s “Squawk on the Street”.
The abrupt downturn after a four-day consecutive positive closing streak for the major indexes marks the latest bear market rally to fizzle as hopes fall apart for a potential easing from the Fed that meets next week to set the next interest rate hike. Volatility remains the mainstay for markets in 2022 as equities and bonds both feel the squeeze.
DBMF Demonstrates Strong Technicals in 2022
Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF).
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
In a market where technicals matter, DBMF is trading well above both its 50-day SMA and 200-day SMA and has year-to-date returns of 27.44% according to the website.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.95%.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF Demonstrates Strong Technicals in 2022 Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. In a market where technicals matter, DBMF is trading well above both its 50-day SMA and 200-day SMA and has year-to-date returns of 27.44% according to the website. | DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. DBMF Demonstrates Strong Technicals in 2022 Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | DBMF Demonstrates Strong Technicals in 2022 Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. In a market where technicals matter, DBMF is trading well above both its 50-day SMA and 200-day SMA and has year-to-date returns of 27.44% according to the website. | DBMF Demonstrates Strong Technicals in 2022 Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. In a market where technicals matter, DBMF is trading well above both its 50-day SMA and 200-day SMA and has year-to-date returns of 27.44% according to the website. | f77014f9-b054-4885-a4d6-8615b559c5f8 |
708804.0 | 2022-09-12 00:00:00 UTC | Hedge Volatility With These ETFs | DBMF | https://www.nasdaq.com/articles/hedge-volatility-with-these-etfs | nan | nan | Volatility has hit the stock market once again, making investors jittery. Fears of an aggressive rate hike by the Fed and global growth concerns have resurfaced.
In such a scenario, investors should apply some hedging techniques to their equity portfolio. While there are a number of ways to do this, volatility-hedged ETFs like iMGP DBi Managed Futures Strategy ETF DBMF, Amplify BlackSwan Growth & Treasury Core ETF SWAN, Invesco S&P 500 Downside Hedged ETF PHDG, Aptus Drawdown Managed Equity ETF ADME and First Trust Managed Futures Strategy Fund FMF could prove beneficial amid market uncertainty. Investors should note that these funds have the potential to stand out and outperform simple vanilla funds in case of rising volatility.
Volatility Lingers
Jerome Powell recently said that the Fed would need to keep interest rates high enough to slow the economy “for some time” to curb high inflation. While a tight monetary policy "for some time" will bring down inflation from its 40-year high, it means slower growth, a weaker job market and "some pain" for households and businesses (read: Rising Rate & Inflation-Beating ETFs at One-Month Highs).
Money market traders see an 87% chance of the Fed hiking rates by 75 basis points in this month's meeting. The Fed has raised its benchmark federal funds rate by 0.75 percentage points at each of its last two meetings to a range of 2.25% to 2.5%.
Bouts of weak economic data across the globe added to global slowdown fears. U.S. mortgage rates touched the highest level in nearly 14 years, signaling that the hot housing market is cooling rapidly. Meanwhile, economic activity in China, the world's second-largest economy, has been declining and the property sector is also suffering. Eurozone inflation for August also rose to another record high.
However, Americans are growing more optimistic about the economy amid falling oil and gasoline prices as well as easing inflation. Consumer confidence rebounded in August after three consecutive monthly declines. Additionally, the economy added 315,000 jobs in August, while the unemployment rate ticked up to 3.7% from 3.5%.
How to Play
iMGP DBi Managed Futures Strategy ETF (DBMF)
iMGP DBi Managed Futures Strategy ETF seeks long-term capital appreciation. It will employ long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities.
iMGP DBi Managed Futures Strategy ETF has AUM of $628 million and charges 95 bps in annual fees. It trades in a moderate volume of 372,000 shares a day on average.
Amplify BlackSwan Growth & Treasury Core ETF (SWAN)
Amplify BlackSwan Growth & Treasury Core ETF tracks the S-Network BlackSwan Core Index, which seeks uncapped exposure to the S&P 500, while buffering against the possibility of significant losses. Approximately 90% of the ETF will be invested in U.S. Treasury securities, while around 10% will be invested in SPY LEAP Options in the form of in-the-money calls.
Amplify BlackSwan Growth & Treasury Core ETF has amassed $364.9 million and trades in an average daily volume of 90,000 shares. It charges 49 bps in annual fees.
Invesco S&P 500 Downside Hedged ETF (PHDG)
Invesco S&P 500 Downside Hedged ETF is an actively managed fund that seeks to deliver positive returns in rising or falling markets that are not directly correlated to broad equity or fixed-income market returns. Invesco S&P 500 Downside Hedged ETF tries to follow the S&P 500 Dynamic VEQTOR Index, which provides broad equity market exposure with an implied volatility hedge by dynamically allocating between different asset classes: equity, volatility and cash. The index allows investors to receive exposure to the equity and volatility of the S&P 500 Index in a dynamic framework (read: Why Low-Volatility ETFs Should Outperform in September).
Invesco S&P 500 Downside Hedged ETF has accumulated $277.4 million in its asset base and charges 40 bps in fees per year from its investors. Volume is good, exchanging 48,000 shares a day on average.
Aptus Drawdown Managed Equity ETF (ADME)
Aptus Drawdown Managed Equity ETF seeks capital appreciation with a focus on managing drawdown risk through hedges. The strategy typically selects 50-75 large U.S. companies based on a Yield plus Growth framework, tilting holdings to favor companies with solid fundamentals and reasonable valuations while avoiding those with negative price momentum. It has an added objective of capital protection through the use of equity and index options to reduce drawdown when U.S. equity markets are falling.
Aptus Drawdown Managed Equity ETF charges 79 bps in annual fees and has accumulated $333 million in its asset base. It trades in an average daily volume of 24,000 shares.
First Trust Managed Futures Strategy Fund (FMF)
WisdomTree Managed Futures Strategy Fund seeks to achieve positive returns that are not directly correlated to broad market equity or fixed income returns by investing in a portfolio of exchange-listed futures (read: Low-Beta ETFs to Beat Market Turmoil).
First Trust Managed Futures Strategy Fund has accumulated $162.6 million and charges 96 bps in annual fees. It trades in a moderate volume of 39,000 shares a day on average.
Bottom Line
Investors can definitely shield their portfolios against volatility with the help of the above-mentioned products. These provide dynamic exposure according to the level of market volatility and are least affected by any market turmoil. So, they could prove to be great choices when it comes to offering protection against market downturns.
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Invesco S&P 500 Downside Hedged ETF (PHDG): ETF Research Reports
First Trust Managed Futures Strategy ETF (FMF): ETF Research Reports
Amplify BlackSwan Growth & Treasury Core ETF (SWAN): ETF Research Reports
iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports
Aptus Drawdown Managed Equity ETF (ADME): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While there are a number of ways to do this, volatility-hedged ETFs like iMGP DBi Managed Futures Strategy ETF DBMF, Amplify BlackSwan Growth & Treasury Core ETF SWAN, Invesco S&P 500 Downside Hedged ETF PHDG, Aptus Drawdown Managed Equity ETF ADME and First Trust Managed Futures Strategy Fund FMF could prove beneficial amid market uncertainty. How to Play iMGP DBi Managed Futures Strategy ETF (DBMF) iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports | While there are a number of ways to do this, volatility-hedged ETFs like iMGP DBi Managed Futures Strategy ETF DBMF, Amplify BlackSwan Growth & Treasury Core ETF SWAN, Invesco S&P 500 Downside Hedged ETF PHDG, Aptus Drawdown Managed Equity ETF ADME and First Trust Managed Futures Strategy Fund FMF could prove beneficial amid market uncertainty. How to Play iMGP DBi Managed Futures Strategy ETF (DBMF) iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports | While there are a number of ways to do this, volatility-hedged ETFs like iMGP DBi Managed Futures Strategy ETF DBMF, Amplify BlackSwan Growth & Treasury Core ETF SWAN, Invesco S&P 500 Downside Hedged ETF PHDG, Aptus Drawdown Managed Equity ETF ADME and First Trust Managed Futures Strategy Fund FMF could prove beneficial amid market uncertainty. How to Play iMGP DBi Managed Futures Strategy ETF (DBMF) iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports | While there are a number of ways to do this, volatility-hedged ETFs like iMGP DBi Managed Futures Strategy ETF DBMF, Amplify BlackSwan Growth & Treasury Core ETF SWAN, Invesco S&P 500 Downside Hedged ETF PHDG, Aptus Drawdown Managed Equity ETF ADME and First Trust Managed Futures Strategy Fund FMF could prove beneficial amid market uncertainty. How to Play iMGP DBi Managed Futures Strategy ETF (DBMF) iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports | 5d5b1233-f1db-4a3e-afaf-ba5e3539ae66 |
708805.0 | 2022-09-08 00:00:00 UTC | Invest With Confidence During “Nervous Markets” With DBMF | DBMF | https://www.nasdaq.com/articles/invest-with-confidence-during-nervous-markets-with-dbmf | nan | nan | Thursday was a rocky day for stocks, with major indexes managing to close higher after Federal Reserve Chair Jerome Powell gave his final speech before the central bank officials go into the two-week quiet period leading up to the September 20-21 rate meeting.
Powell’s message aligned with previous guidance from the Fed, reiterating once again that the central bank remains committed to its fight against inflation while seeking to curtail strong labor markets, and that there would be no relenting anytime soon.
“History cautions strongly against prematurely loosening policy,” Powell said at a Q&A with the Cato Institute Thursday, reported CNBC. “I can assure you that my colleagues and I are strongly committed to this project and we will keep at it until the job is done.”
Stocks fell during and shortly after Powell’s remarks, but later rallied to a market close that was the strongest close since August 10 for the major indexes. Despite the gains, stocks remain in an overall downtrend, with markets likely in a holding pattern until the August consumer price index that releases on September 13.
“I think we have a nervous market in a pre-CPI week,” Art Hogan, chief market strategist at B. Riley Financial, told CNBC. “We’re probably going to shift into a wait-and-see mode.”
DBMF Cuts Through Volatility to Offer Performance
The Fed has indicated that it will need to see strong, consecutive signals that inflation is falling before it will be willing to back off from interest rate increases. Volatility is expected to continue as the labor market remains strong while growth drops off.
Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds and has over $600 million in AUM.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.95%.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “We’re probably going to shift into a wait-and-see mode.” DBMF Cuts Through Volatility to Offer Performance The Fed has indicated that it will need to see strong, consecutive signals that inflation is falling before it will be willing to back off from interest rate increases. Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. “We’re probably going to shift into a wait-and-see mode.” DBMF Cuts Through Volatility to Offer Performance The Fed has indicated that it will need to see strong, consecutive signals that inflation is falling before it will be willing to back off from interest rate increases. Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. | Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. “We’re probably going to shift into a wait-and-see mode.” DBMF Cuts Through Volatility to Offer Performance The Fed has indicated that it will need to see strong, consecutive signals that inflation is falling before it will be willing to back off from interest rate increases. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | Investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a managed futures fund designed to capture performance no matter how equity markets are moving. “We’re probably going to shift into a wait-and-see mode.” DBMF Cuts Through Volatility to Offer Performance The Fed has indicated that it will need to see strong, consecutive signals that inflation is falling before it will be willing to back off from interest rate increases. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | a8dfefb9-9104-4990-bae6-22e135b4a219 |
708806.0 | 2022-08-29 00:00:00 UTC | Bobby Blue on the Rise of Liquid Alts and Managed Futures | DBMF | https://www.nasdaq.com/articles/bobby-blue-on-the-rise-of-liquid-alts-and-managed-futures | nan | nan | This year has seen a massive resurgence in popularity for liquid alternatives, with strategies such as managed futures, volatility, long-short equity, and more raking in flows. Liquid alts have been one of the few asset classes to have largely performed well in a challenging environment for equities and bonds. Bobby Blue, senior manager research analyst at Morningstar, recently sat down with VettaFi to discuss the trend towards liquid alts that began last year and has continued strongly into this year.
Liquid alts are mutual funds, closed-end funds, and ETFs that invest in alternative investment strategies offering downside protection and diversification opportunities while providing daily liquidity which makes them accessible to all investors. Up until partway through last year, liquid alts struggled to gain traction with investors in a market that was tilted strongly towards equity and fixed income beta.
“I think from a performance perspective, it was a bit of a lost decade for a lot of these strategies, not just trend, but most other liquid alt strategies too; long-short equity, market neutral, merger arbitrage,” Blue explained.
The Rise of Crisis Alpha Strategies
“These strategies, when they’re working well, they’re diversifying away from equity and fixed income beta — and that was the story of the 2010s," said Blue.
The financial crisis of 2008–2009 brought to the forefront the need for diversification and downside protection after decades of strong economic growth, equity performance, and bond market appreciation, according to a white paper written in 2014 by Ezra Zask, the president at the time of the Liquid Alternative Investments Company. With that realization came a boom in liquid alternative funds that lasted for several years before drying up in a challenging environment for these alternative strategies.
“Now that that sort of theme has broken down a little bit, you are seeing some of these strategies perform better in this new environment,” Blue said.
“Investors are seeing the diversification benefits that these strategies can add to a portfolio with nearly zero correlation to equity and fixed income markets for long periods of time and seeing that they can improve a portfolio’s risk-adjusted returns — in some cases the absolute level of returns — depending on how you’re allocating to them.”
Managed futures are a subset of liquid alternatives that have offered better returns than many other asset classes this year and are best known for their ability to generate crisis alpha, a term coined following the financial crisis by Kathryn Kaminski to describe the strategy’s ability to find pockets of performance and profit during market turmoil and dislocation. Managed futures don’t just perform during downturns, however. Because they are quantitative-driven models that seek to offer certain levels of return regardless of market movement, they are classified as absolute return strategies at Morningstar.
“An investor looking for some sort of uncorrelated return stream… we would probably steer them towards an allocation to an opportunistic strategy like a systematic trend or global macro that have the ability to benefit when markets are going up,” Blue explained.
“When markets are down, they tend to have the lowest correlations to broader equity and fixed income markets; they’re that absolute return sleeve that can have the potential to generate performance in good times and bad.”
Capturing Volatility Regime Changes
Investors can gain access to managed futures strategies through hedge funds, mutual funds, and ETFs, though Blue anticipates that ETFs will continue to gain more market share over time. The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy that seeks to replicate the performance of the 20 largest managed futures hedge funds.
“Any managed futures manager will tell you the same: The strategies are really geared to capture these sort of market regime shifts when you move from one volatility regime to another and there are new drivers,” explained Blue. “The reason for that is just the relative slowness of different market participants to pick up on these [trends] and the sort of agnosticism of managed futures managers to jump on those trends as soon as they start to develop.”
Much of the barriers to investing in managed futures and liquid alternatives have been in the inherently more complex nature of derivatives investing and the futures market. Managed futures take long and short positions within futures on a range of asset classes, including equities, currencies, commodities, and fixed income.
“The one thing that we’ve really been emphasizing is, this is a space where probably extra care is required, extra diligence is required. We really encourage investors to understand the product,” cautioned Blue. “You don’t need to know what it is inside and out — a lot of these quant systematic strategies are difficult to really fully grasp — but understand when it will perform well and when it will struggle.”
DBMF utilizes its own Dynamic Beta Engine, a propriety, quantitative model that attempts to determine how the largest CTA hedge funds are allocated so that the portfolio mimics the performance of the average of the 20 largest CTA hedge funds. By offering the hedge fund strategy in an ETF wrapper, DBMF can provide cost savings that preserve more of the return stream generated for investors.
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
"I think it's safe to say that at some point over the next 40 years, or however long your investment time horizon is, we will see a period like this again, and that is probably why you allocated to these strategies in the first place," Blue said. "So keep them in there, understand them, and really have a good understanding of the role they're serving in your portfolio."
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy that seeks to replicate the performance of the 20 largest managed futures hedge funds. “You don’t need to know what it is inside and out — a lot of these quant systematic strategies are difficult to really fully grasp — but understand when it will perform well and when it will struggle.” DBMF utilizes its own Dynamic Beta Engine, a propriety, quantitative model that attempts to determine how the largest CTA hedge funds are allocated so that the portfolio mimics the performance of the average of the 20 largest CTA hedge funds. By offering the hedge fund strategy in an ETF wrapper, DBMF can provide cost savings that preserve more of the return stream generated for investors. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy that seeks to replicate the performance of the 20 largest managed futures hedge funds. “You don’t need to know what it is inside and out — a lot of these quant systematic strategies are difficult to really fully grasp — but understand when it will perform well and when it will struggle.” DBMF utilizes its own Dynamic Beta Engine, a propriety, quantitative model that attempts to determine how the largest CTA hedge funds are allocated so that the portfolio mimics the performance of the average of the 20 largest CTA hedge funds. By offering the hedge fund strategy in an ETF wrapper, DBMF can provide cost savings that preserve more of the return stream generated for investors. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy that seeks to replicate the performance of the 20 largest managed futures hedge funds. “You don’t need to know what it is inside and out — a lot of these quant systematic strategies are difficult to really fully grasp — but understand when it will perform well and when it will struggle.” DBMF utilizes its own Dynamic Beta Engine, a propriety, quantitative model that attempts to determine how the largest CTA hedge funds are allocated so that the portfolio mimics the performance of the average of the 20 largest CTA hedge funds. By offering the hedge fund strategy in an ETF wrapper, DBMF can provide cost savings that preserve more of the return stream generated for investors. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy that seeks to replicate the performance of the 20 largest managed futures hedge funds. “You don’t need to know what it is inside and out — a lot of these quant systematic strategies are difficult to really fully grasp — but understand when it will perform well and when it will struggle.” DBMF utilizes its own Dynamic Beta Engine, a propriety, quantitative model that attempts to determine how the largest CTA hedge funds are allocated so that the portfolio mimics the performance of the average of the 20 largest CTA hedge funds. By offering the hedge fund strategy in an ETF wrapper, DBMF can provide cost savings that preserve more of the return stream generated for investors. | 1b01747a-9a0f-4342-a8f0-28e60f3e04f0 |
708807.0 | 2022-08-24 00:00:00 UTC | A Focused Managed Futures ETF Strategy to Help Investors Better Manage Risk | DBMF | https://www.nasdaq.com/articles/a-focused-managed-futures-etf-strategy-to-help-investors-better-manage-risk-0 | nan | nan | Investors who are looking for ways to diversify their portfolios can consider the benefits of a managed futures exchange traded fund strategy.
In the recent webcast, Is Your Portfolio Stuck in the Past? Look to Managed Futures, Andrew Beer, managing member, Dynamic Beta investments, noted that there may be many misconceptions about liquid alternatives. Some may find that liquid alternates are a confusing name for hundreds of confusing products, something that sounds great on paper but often works terribly in practice, or even an area where smart guys often look stupid.
On paper, something like managed futures can help provided greater diversification, or more bang for their invested buck. For example, managed futures exhibit a -0.04 correlation to equities and a 0.17 correlation to bonds. These strategies have outperformed during periods of heightened volatility, generating positive returns during severe sell-offs such as the volatile first half of 2022 and the COVID-19 pandemic.
Beer noted that the modern version of a managed futures futures strategy is capable of adapting to the shifting times and meeting the potential challenges ahead. Modern managed futures strategies are based on human-built models. They are very dynamic and tactical. The portfolios are comprised of long and short positions across commodity, fixed income, currency, and equity futures that track simple but durable concepts.
As a way to provide a simple and easy-to-use solution for investors, Dynamic Beta investments has come out with the actively managed iMDBi Managed Futures Strategy ETF (DBMF), which tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. The strategy, actively managed, seeks to deliver all or more of the pre-fee performance of CTA hedge funds in a daily liquid ETF.
DBi’s investment strategy seeks to identify key market exposures — across equity, fixed income, currency, and commodity markets — of a select pool of CTA (managed futures) hedge funds. Based on this analysis, DBi invests directly in long and short positions in the most liquid domestically traded futures contracts. In addition, by targeting the pre-fee performance of the largest CTA hedge funds, the strategy seeks to deliver the lower risk profile of a diversified pool of funds with reasonable fees.
Additionally, the actively managed iMDBi Hedge Strategy ETF (DBEH) tries to match or outperform the performance of the largest Global Equity Long/Short hedge funds from the HFR (Hedge Fund Research, Inc.) database. The fund’s objective is long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, and currencies through futures and forwards contracts.
DBi’s proprietary investment strategy seeks to identify the main drivers of the performance of a diversified pool of leading long/short equity hedge funds. Based on this analysis, DBi invests directly in long and short positions in the most liquid domestically traded futures contracts. By targeting the pre-fee performance of the largest Global Equity Long/Short hedge funds, the strategy seeks to deliver the lower risk profile of a diversified pool of hedge funds, but with reasonable fees.
"We endeavor to outperform high-cost, illiquid hedge funds with low fees and daily liquidity," Beer said.
DBi is "known for loudly and publicly sidestepping most 'landmines' in liquid alts," he added.
Financial advisors who are interested in learning more about managed futures can watch the webcast here on demand.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a way to provide a simple and easy-to-use solution for investors, Dynamic Beta investments has come out with the actively managed iMDBi Managed Futures Strategy ETF (DBMF), which tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. The portfolios are comprised of long and short positions across commodity, fixed income, currency, and equity futures that track simple but durable concepts. | As a way to provide a simple and easy-to-use solution for investors, Dynamic Beta investments has come out with the actively managed iMDBi Managed Futures Strategy ETF (DBMF), which tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. DBi’s investment strategy seeks to identify key market exposures — across equity, fixed income, currency, and commodity markets — of a select pool of CTA (managed futures) hedge funds. | As a way to provide a simple and easy-to-use solution for investors, Dynamic Beta investments has come out with the actively managed iMDBi Managed Futures Strategy ETF (DBMF), which tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. DBi’s investment strategy seeks to identify key market exposures — across equity, fixed income, currency, and commodity markets — of a select pool of CTA (managed futures) hedge funds. | As a way to provide a simple and easy-to-use solution for investors, Dynamic Beta investments has come out with the actively managed iMDBi Managed Futures Strategy ETF (DBMF), which tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. Investors who are looking for ways to diversify their portfolios can consider the benefits of a managed futures exchange traded fund strategy. | 70f425f0-6d37-43f1-8d57-dd9bc06e0481 |
708808.0 | 2022-08-23 00:00:00 UTC | Is Your Portfolio Stuck in the Past? Look to Managed Futures | DBMF | https://www.nasdaq.com/articles/is-your-portfolio-stuck-in-the-past-look-to-managed-futures | nan | nan | During changing and volatile market conditions, investors need a nimble strategy that is capable of adapting to the shifting times and meeting the potential challenges ahead. One such method is through alternative strategies or managed futures that were once solely accessible to institutional-sized investors.
In the upcoming webcast, Is Your Portfolio Stuck in the Past? Look to Managed Futures, Andrew Beer, Managing Member, Dynamic Beta investments, will highlight the benefits of a managed futures strategy and how a dynamic alternative investment tool can help diversify financial advisors' client portfolios.
For example, the actively managed iMDBi Managed Futures Strategy ETF (DBMF) tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. The strategy, actively managed, seeks to deliver all or more of the pre-fee performance of CTA hedge funds in a daily liquid ETF.
DBi’s investment strategy seeks to identify key market exposures — across equity, fixed income, currency, and commodity markets — of a select pool of CTA (managed futures) hedge funds. Based on this analysis, DBi invests directly in long and short positions in the most liquid domestically traded futures contracts. In addition, by targeting the pre-fee performance of the largest CTA hedge funds, the strategy seeks to deliver the lower risk profile of a diversified pool of funds with reasonable fees.
Additionally, the actively managed iMDBi Hedge Strategy ETF (DBEH) tries to match or outperform the performance of the largest Global Equity Long/Short hedge funds from the HFR (Hedge Fund Research, Inc.) database. The fund’s objective is long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, and currencies through futures and forwards contracts.
DBi’s proprietary investment strategy seeks to identify the main drivers of the performance of a diversified pool of leading long/short equity hedge funds. Based on this analysis, DBi invests directly in long and short positions in the most liquid domestically traded futures contracts. By targeting the pre-fee performance of the largest Global Equity Long/Short hedge funds, the strategy seeks to deliver the lower risk profile of a diversified pool of hedge funds, but with reasonable fees.
Financial advisors who are interested in learning more about managed futures can register for the Wednesday, August 24 webcast here.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For example, the actively managed iMDBi Managed Futures Strategy ETF (DBMF) tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. During changing and volatile market conditions, investors need a nimble strategy that is capable of adapting to the shifting times and meeting the potential challenges ahead. | For example, the actively managed iMDBi Managed Futures Strategy ETF (DBMF) tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. In addition, by targeting the pre-fee performance of the largest CTA hedge funds, the strategy seeks to deliver the lower risk profile of a diversified pool of funds with reasonable fees. | For example, the actively managed iMDBi Managed Futures Strategy ETF (DBMF) tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. Look to Managed Futures, Andrew Beer, Managing Member, Dynamic Beta investments, will highlight the benefits of a managed futures strategy and how a dynamic alternative investment tool can help diversify financial advisors' client portfolios. | For example, the actively managed iMDBi Managed Futures Strategy ETF (DBMF) tries to capture long-term capital appreciation by investing in multiple asset classes such as equities, fixed income, currencies, and commodities through futures and forwards contracts. DBMF seeks to achieve its objective by using a managed futures strategy based on a proprietary quantitative model. Look to Managed Futures, Andrew Beer, Managing Member, Dynamic Beta investments, will highlight the benefits of a managed futures strategy and how a dynamic alternative investment tool can help diversify financial advisors' client portfolios. | 4b35e8af-58e0-4d7a-b76f-51b1c83226b9 |
708809.0 | 2022-08-17 00:00:00 UTC | Andrew Beer Talks DBMF’s History and Performance | DBMF | https://www.nasdaq.com/articles/andrew-beer-talks-dbmfs-history-and-performance | nan | nan | Alternatives, the investment arena that contains everything from hedge funds to real estate, have become a more popular investment for advisors and investors this year when traditional 60/40 equity and fixed income portfolios have struggled. Within the alternatives subset, liquid alternatives, or alternative investment strategies through ETFs, mutual funds, and closed-end funds that offer daily liquidity, have experienced fairly significant inflows this year, with managed futures rising to the top as an outperforming class of their own.
The iMGP DBi Managed Futures Strategy ETF (DBMF) experienced the greatest inflows of all managed futures ETFs in 2022, bringing in $349.5 million year-to-date and offering a year-to-date return of 21.92% as of August 16, 2022.
Andrew Beer, founder and managing member of Dynamic Beta investments as well as co-portfolio manager of DBMF, recently spoke with Forbes about the fund, which he runs alongside Mathias Mamou-Mani, co-portfolio manager, head of risk, and managing member of Dynamic Beta investments.
DBMF seeks to replicate the performance of the 20 largest managed futures hedge funds, which take long and short positions via futures contracts on a variety of asset classes within equities, commodities, currencies, and fixed income. It’s gained popularity for the crisis alpha that these strategies typically generate during times of volatility, as well as the uncorrelated diversification potential they can provide for portfolios to traditional equities and bonds.
“No one has figured out how to pick which hedge fund’s going to do well, just like they haven't figured out how to pick which stock is going to do well,” Beer told Forbes. “The most reliable way to outperform is by cutting fees.”
DBMF carries an expense ratio of 0.85%, which while on the higher end for an ETF is still significantly lower than gaining access to the strategy via a hedge fund that charges an average of 2% in administrative fees as well as 20% in performance fees based on the profits. In addition to the fees, hedge funds carry a fairly significant barrier to entry, requiring high minimum investments of $1 million and upwards, preventing access for most retail investors.
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to determine how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions). The ETF rebalances weekly based on the DBE model.
Beer explained to Forbes that although DBMF only has 10 futures contracts — currently short on the Japanese yen, the euro, U.S. treasuries, and the S&P 500 along with international stocks, and long crude oil — the ETF can replicate 90% or greater of the returns of managed futures hedge funds while offering the money savings that the ETF wrapper provides.
“We're not trying to say these guys have X amount in pork bellies and copy that. We're basically saying, what are the big trades?” Beer said. “You don't need to pay somebody 4% or 5% to do the big trades. We'll do it and we'll do it efficiently.”
The Founding of DBi and DBMF’s Creation
Beer got his start at Harvard Business School in 1994 and went on to work in traditional hedge funds at Baupost Group, before ultimately setting out on his own in the early 2000s and starting two small hedge funds. These funds were Pinnacle Asset Management, which traded in commodities, and Apex Capital Management which was centered on China.
Eventually, Beer founded Belenos Capital Management, a firm that would later become Dynamic Beta investments, and its managed futures fund performed strongly during the recession but then growth dropped dramatically in the 2010s when managed futures struggled. iM Global stepped in in 2018 and bought a 50% stake in DBi, and collectively the two launched DBMF in 2019, with DBi as the subadvisor.
The fund is the largest of managed futures ETFs, is currently a five-star Morningstar rated fund, and continues to experience strong inflows as market volatility continues.
“We believe that there are thousands or tens of thousands of RIAs who are now looking at the collapse in 60/40 portfolios and saying, I need something to add to this,” Beer explained. “The next step is to get a big following in the wirehouses and the Morgan Stanleys and Merrill Lynches of the world.”
For more news, information, and strategy, visit the Managed Futures Channel.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iMGP DBi Managed Futures Strategy ETF (DBMF) experienced the greatest inflows of all managed futures ETFs in 2022, bringing in $349.5 million year-to-date and offering a year-to-date return of 21.92% as of August 16, 2022. Andrew Beer, founder and managing member of Dynamic Beta investments as well as co-portfolio manager of DBMF, recently spoke with Forbes about the fund, which he runs alongside Mathias Mamou-Mani, co-portfolio manager, head of risk, and managing member of Dynamic Beta investments. DBMF seeks to replicate the performance of the 20 largest managed futures hedge funds, which take long and short positions via futures contracts on a variety of asset classes within equities, commodities, currencies, and fixed income. | The iMGP DBi Managed Futures Strategy ETF (DBMF) experienced the greatest inflows of all managed futures ETFs in 2022, bringing in $349.5 million year-to-date and offering a year-to-date return of 21.92% as of August 16, 2022. DBMF seeks to replicate the performance of the 20 largest managed futures hedge funds, which take long and short positions via futures contracts on a variety of asset classes within equities, commodities, currencies, and fixed income. Andrew Beer, founder and managing member of Dynamic Beta investments as well as co-portfolio manager of DBMF, recently spoke with Forbes about the fund, which he runs alongside Mathias Mamou-Mani, co-portfolio manager, head of risk, and managing member of Dynamic Beta investments. | Andrew Beer, founder and managing member of Dynamic Beta investments as well as co-portfolio manager of DBMF, recently spoke with Forbes about the fund, which he runs alongside Mathias Mamou-Mani, co-portfolio manager, head of risk, and managing member of Dynamic Beta investments. Beer explained to Forbes that although DBMF only has 10 futures contracts — currently short on the Japanese yen, the euro, U.S. treasuries, and the S&P 500 along with international stocks, and long crude oil — the ETF can replicate 90% or greater of the returns of managed futures hedge funds while offering the money savings that the ETF wrapper provides. The iMGP DBi Managed Futures Strategy ETF (DBMF) experienced the greatest inflows of all managed futures ETFs in 2022, bringing in $349.5 million year-to-date and offering a year-to-date return of 21.92% as of August 16, 2022. | The iMGP DBi Managed Futures Strategy ETF (DBMF) experienced the greatest inflows of all managed futures ETFs in 2022, bringing in $349.5 million year-to-date and offering a year-to-date return of 21.92% as of August 16, 2022. Andrew Beer, founder and managing member of Dynamic Beta investments as well as co-portfolio manager of DBMF, recently spoke with Forbes about the fund, which he runs alongside Mathias Mamou-Mani, co-portfolio manager, head of risk, and managing member of Dynamic Beta investments. DBMF seeks to replicate the performance of the 20 largest managed futures hedge funds, which take long and short positions via futures contracts on a variety of asset classes within equities, commodities, currencies, and fixed income. | 25e8e7a9-791a-49b1-9adf-2deef05a8055 |
708810.0 | 2022-08-16 00:00:00 UTC | ETF Prime: Lara Crigger on Clean Energy and ESG Investing | DBMF | https://www.nasdaq.com/articles/etf-prime%3A-lara-crigger-on-clean-energy-and-esg-investing | nan | nan | On this week's ETF Prime, VettaFi’s Lara Crigger joins host Nate Geraci to discuss the recent resurgence of clean energy ETFs and what’s next for the ESG ETF space overall. Strive’s Vivek Ramaswamy highlights the launch of their U.S. Energy ETF (DRLL) and a “post-ESG” approach to asset management. Dynamic Beta’s Andrew Beer explains the iMGP DBi Managed Futures Strategy ETF (DBMF).
As 2022 markets have gone sideways, traditional energy has had some resurgence, becoming one of the only sectors to consistently put up positive numbers. Meanwhile, as growth stocks took their lumps, ESG ETFs have received increased scrutiny, with many investors questioning what's in these ETFs and if they actually achieve their ESG goals and provide an appealing value proposition. After being the darlings of 2020, ESG ETFs seemed to fade — until recently.
Over three months iShares Global Clean Energy ETF (ICLN) is up over 35%. During the same period, the traditional energy behemoth the Energy Sector Select SPDR ETF (XLE) is down 4%.
Speaking to clean energy's rebound, Crigger said, "There's one big, huge driver that's driving the outperformance here in clean energy, and that's the Inflation Reduction Act." The ambitious climate bill allocates $374 billion toward climate and clean energy initiatives, creating a huge growth opportunity for clean energy stocks. Crigger noted that several factors had been holding ESG-focused stocks back.
Before passing the Inflation Reduction Act, congress had displayed ambivalence toward climate policy, and the supply chain issues hampered the ability of clean energy firms to get raw materials. "In 2021, that's when the supply chain chickens came home to roost. It manifested in difficulties in sourcing raw materials for clean energy stocks, particularly in the U.S. where they source so much of their stuff overseas," Crigger said, "It was a ripple effect."
Clean energy grew quickly in 2020, and Crigger thinks that some retracement was inevitable. The Invesco Solar ETF (TAN) up 235% in 2020. Last year it stumbled 25% and is surging 16% this year. Meanwhile, the First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) was up 184% in 2020, fell 3% in 2021, and is currently up 1% in 2022. "I think we're probably going to keep seeing the space rising for a little while because the fundamentals are really strong, but the next big test is the midterm elections," Crigger noted.
It isn't just performance that has been up, VettaFi has seen broad engagement with clean energy research throughout the site. Crigger said, "the Alternative Energies Equities category has just been zooming up the ranks of most popular categories this month. So far in August, it's the fifth most popular ETF category on our platform after several months of being around 40 or 50."
Traditionally, advisors have seen clean energy and conventional energy stocks as diametrically opposed, but more recently they have both grown to be critical ingredients in a diverse portfolio. Crigger said, "Advisors increasingly don't see energy as an either/or decision with fossil fuels on one side and clean energy on the other."
Flows in the past month for clean energy have been positive, but Crigger observed that "it's not just clean energy ETFs seeing the bump." Crigger pointed to big numbers being racked by ESG funds with focuses beyond just clean energy with the iShares ESG Aware US Aggregate Bond ETF (EAGG) getting $211 million in flows over the past 30 days and the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) which garnered $100 million in flows. The KraneShares Global Carbon Strategy ETF (KRBN) is also seeing flows.
Strive Pushes for Anti-ESG "Excellence Capitalism"
Next up, Geraci spoke to Strive's Vivek Ramaswamy, who talked about the launch of their U.S. Energy ETF (DRLL) which has already racked up $100 million in AUM.
"A lot of asset managers over the last half decade have adopted social and political agendas that they foist onto the companies that they invest in," Ramaswamy said. "They are using the money of everyday citizens to take large positions in public companies and then force those public companies to adopt social and political agendas that most of the everyday citizens, the owners of capital, do not agree in." Strive's goal is to use their shares to vote against what he describes as the "demands of the ESG movement."
Ramaswamy hopes to push against what he sees as rising politicization in the board rooms by voting the proxies they have control over entirely toward profit and what he describes as "excellence capitalism."
"We thought it was important to bring a different voice to the table in the U.S. energy sector telling these companies that its okay to drill, to frack, to do more of each, to produce more energy, whatever allows you to be more successful in the long-run without these ESG demands," Ramaswamy told Geraci.
He also pushed back against the idea that Strive was anti-environmental, claiming that the U.S. producing less oil would spur China and Russia to produce more oil, causing methane leaks which are more damaging to the environment than CO2. "We think it will actually have a positive externality for our environment. It's going to have a positive externality for our culture by creating greater unity in our society."
Ramaswamy sees Strive as a post-ESG firm. "If you want to go the way of the dodo, maybe you look in the rearview mirror to the ESG era of the last five years."
Andrew Beer on Managed Futures
Geraci also spoke to Dynamic Beta's Andrew Beer about the iMGP DBi Managed Futures Strategy ETF (DBMF), which is up over 20% on the year. Beer said, "if you had to use three words to describe what we do, and this is going to sound a little bit strange when you are talking about a liquid alternative ETF, but our approach is simple is better." Beer sees DBMF as a client-friendly way to get the diversification benefits of managed futures hedge funds in a low-cost way. "You get this really unusual combination of being able to not just match what hedge funds do, but outperform them but in an ETF with low fees and daily liquidity."
Hedge funds and investment banks have impressive risk engines and quantitative models. Their model looks at what hedge funds are doing and tries to copy it through the platform of managed futures.
Asked why managed futures, Beer noted that they have tremendous flexibility in what they can do. "You can go seamlessly long and short with minimal investment costs," Beer said. "What managed futures funds are very good at telling you are what really are some of the underlying currents in the market."
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Dynamic Beta’s Andrew Beer explains the iMGP DBi Managed Futures Strategy ETF (DBMF). Andrew Beer on Managed Futures Geraci also spoke to Dynamic Beta's Andrew Beer about the iMGP DBi Managed Futures Strategy ETF (DBMF), which is up over 20% on the year. Beer sees DBMF as a client-friendly way to get the diversification benefits of managed futures hedge funds in a low-cost way. | Dynamic Beta’s Andrew Beer explains the iMGP DBi Managed Futures Strategy ETF (DBMF). Andrew Beer on Managed Futures Geraci also spoke to Dynamic Beta's Andrew Beer about the iMGP DBi Managed Futures Strategy ETF (DBMF), which is up over 20% on the year. Beer sees DBMF as a client-friendly way to get the diversification benefits of managed futures hedge funds in a low-cost way. | Dynamic Beta’s Andrew Beer explains the iMGP DBi Managed Futures Strategy ETF (DBMF). Andrew Beer on Managed Futures Geraci also spoke to Dynamic Beta's Andrew Beer about the iMGP DBi Managed Futures Strategy ETF (DBMF), which is up over 20% on the year. Beer sees DBMF as a client-friendly way to get the diversification benefits of managed futures hedge funds in a low-cost way. | Dynamic Beta’s Andrew Beer explains the iMGP DBi Managed Futures Strategy ETF (DBMF). Andrew Beer on Managed Futures Geraci also spoke to Dynamic Beta's Andrew Beer about the iMGP DBi Managed Futures Strategy ETF (DBMF), which is up over 20% on the year. Beer sees DBMF as a client-friendly way to get the diversification benefits of managed futures hedge funds in a low-cost way. | b188a837-92d7-4d6c-90c8-07de81b4f1e7 |
708811.0 | 2022-08-11 00:00:00 UTC | Will the Inflation Reports Be Enough for the Fed? | DBMF | https://www.nasdaq.com/articles/will-the-inflation-reports-be-enough-for-the-fed | nan | nan | Markets continued their bounce from Wednesday’s July consumer price index report that inflation rose just 8.5% year-over-year, coming in under analyst expectations of 8.7%, with the follow-up producer price index report on Thursday for July dropping 0.5% month-over-month. It’s the first time PPI has dropped in over two years and has investors hopeful that inflation has peaked.
Core inflation for July remained flat month-over-month, which takes out food and energy — often volatile contributors — and is a closer gauge of what the Federal Reserve will be looking at when they meet again in September.
Image source: Bureau of Labor Statistics
While gas prices have dropped (the gasoline index was down 7.7% in July), food prices have risen substantially, with the food-at-home index (a gauge of grocery store price changes) gaining 1.3% in July for a 10.9% year-over-year increase, the biggest 12-month rise since 1979.
Shelter, one of the major contributors to CPI and core inflation, increased again in July, rising 0.5% after a 0.6% gain in June. Housing prices have finally begun to come down from their soaring highs, but as rental prices and the owner's equivalent rent (OER is used to calculate how much a homeowner would pay to rent their home) typically lag by several months, shelter is expected to create inflationary pressure well into next year.
The core personal consumption expenditures price index (PCE) which measures what consumers are paying for goods and services, is one of the primary gauges that the Fed uses when it determines interest rate increases, alongside CPI. PCE for July will be released on August 26.
Investing for Any Market with Managed Futures
Markets may be back to risk-on as investor sentiment improves from hopeful inflation reports and a stronger than expected earnings season, but the Fed has indicated that it will need to see strong, consecutive signals that inflation is falling before it will be willing to back off from interest rate increases. Volatility is expected to continue as the labor market remains strong while growth drops off.
Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF).
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | 16f567c5-ae2a-4d39-9d56-2f59dbfe0a35 |
708812.0 | 2022-08-08 00:00:00 UTC | Eric Balchunas and Andrew Beer Talk DBMF on Bloomberg ETF IQ | DBMF | https://www.nasdaq.com/articles/eric-balchunas-and-andrew-beer-talk-dbmf-on-bloomberg-etf-iq | nan | nan | It’s the year for alternatives within investing and Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, discussed the outperformance of the iMGP DBi Managed Futures Strategy ETF (DBMF) on “Bloomberg ETF IQ” last week, along with Andrew Beer, co-portfolio manager of DBMF and managing member of Dynamic Beta investments, the sub-advisor of the fund.
DBMF is a managed futures fund that seeks to provide the performance of the average of the 20 largest managed futures hedge funds within an ETF wrapper, providing access for any investor with the added benefit of reduced fees made possible within ETFs.
Balchunas explained that within the alternatives category, DBMF is the top ETF by flows for 2022, bringing in almost $353.5 million year-to-date, a virtually unheard of phenomenon for a managed futures ETF, and strong performance for the category.
“A category that was left for dead… the stars are aligning finally for it,” Balchunas said.
Andrew Beer, co-portfolio manager of DBMF, was on to discuss the fund and managed futures, which take either short or long positions on a variety of futures contracts within commodities, currency, domestic equities, and fixed income. Because managed futures operate within the futures market, they are uncorrelated to bonds and traditional equities, and they tend to remove individual bias because they invest based on data trends.
The major managed futures hedge funds this year had long positions on crude oil while it was going up and then pivoted away when it reversed, Beer discussed, while being short Treasuries in a rising rate environment, with the ability to pivot away once that reverses as well.
“Basically, the strategy is diversified across these major trades across markets, and at different points in time, different trades are going to be working,” Beer explained. “This has been a year we’ve described as shooting fish in a barrel because there’s been a lot of things trending in the markets this year.”
Why DBMF Costs More, and Diversification Opportunities
DBMF carries an expense ratio of 85 basis points (0.85%), which is on the high end for an ETF, but it’s drastically lower than accessing the strategy through just a single hedge fund which has fees over 200 basis points. In addition, DBMF offers the ability to diversify across hedge fund strategies because it takes the average performance of the top 20 managed futures hedge funds, which eliminates single manager bias and risk.
It's also higher because liquid alternatives in general all carry high expense ratios, something that Beer believes needs to be changed because, according to him, the end users of a liquid alternatives ETF are individuals that build model portfolios.
DBMF seeks to replicate the performance of the largest managed futures hedge funds because the large, established firms already have “all sorts of sophisticated ways of deciding what to buy and sell when,” Beer discussed, and then offers that performance through a significantly cheaper ETF vehicle. “As a result, you end up what is essentially designed to be an index plus product.”
The discussion turns to what performance would look like in an environment where the traditional 60/40 portfolio begins to return to favor: the current environment of prolonged market volatility is one in which managed futures have historically performed strongly.
“Our pitch to people is over the next 10 years we’re probably not going back to the 2010s,” a time when 60/40 portfolios thrived and investors made little, if any changes to their portfolios and were rewarded for it, Beer said.
“The first half of this year was a sea change in investor expectations, so literally every person over the next year as they’re building and looking at their model portfolios says ‘what can I do to add diversification,’” Beer explained. “If you want diversification bang for your buck, you start with managed futures.”
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF is a managed futures fund that seeks to provide the performance of the average of the 20 largest managed futures hedge funds within an ETF wrapper, providing access for any investor with the added benefit of reduced fees made possible within ETFs. “This has been a year we’ve described as shooting fish in a barrel because there’s been a lot of things trending in the markets this year.” Why DBMF Costs More, and Diversification Opportunities DBMF carries an expense ratio of 85 basis points (0.85%), which is on the high end for an ETF, but it’s drastically lower than accessing the strategy through just a single hedge fund which has fees over 200 basis points. DBMF seeks to replicate the performance of the largest managed futures hedge funds because the large, established firms already have “all sorts of sophisticated ways of deciding what to buy and sell when,” Beer discussed, and then offers that performance through a significantly cheaper ETF vehicle. | DBMF is a managed futures fund that seeks to provide the performance of the average of the 20 largest managed futures hedge funds within an ETF wrapper, providing access for any investor with the added benefit of reduced fees made possible within ETFs. Andrew Beer, co-portfolio manager of DBMF, was on to discuss the fund and managed futures, which take either short or long positions on a variety of futures contracts within commodities, currency, domestic equities, and fixed income. In addition, DBMF offers the ability to diversify across hedge fund strategies because it takes the average performance of the top 20 managed futures hedge funds, which eliminates single manager bias and risk. | It’s the year for alternatives within investing and Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, discussed the outperformance of the iMGP DBi Managed Futures Strategy ETF (DBMF) on “Bloomberg ETF IQ” last week, along with Andrew Beer, co-portfolio manager of DBMF and managing member of Dynamic Beta investments, the sub-advisor of the fund. DBMF is a managed futures fund that seeks to provide the performance of the average of the 20 largest managed futures hedge funds within an ETF wrapper, providing access for any investor with the added benefit of reduced fees made possible within ETFs. In addition, DBMF offers the ability to diversify across hedge fund strategies because it takes the average performance of the top 20 managed futures hedge funds, which eliminates single manager bias and risk. | DBMF is a managed futures fund that seeks to provide the performance of the average of the 20 largest managed futures hedge funds within an ETF wrapper, providing access for any investor with the added benefit of reduced fees made possible within ETFs. “This has been a year we’ve described as shooting fish in a barrel because there’s been a lot of things trending in the markets this year.” Why DBMF Costs More, and Diversification Opportunities DBMF carries an expense ratio of 85 basis points (0.85%), which is on the high end for an ETF, but it’s drastically lower than accessing the strategy through just a single hedge fund which has fees over 200 basis points. In addition, DBMF offers the ability to diversify across hedge fund strategies because it takes the average performance of the top 20 managed futures hedge funds, which eliminates single manager bias and risk. | 83eb093a-e151-4564-9f8d-b33bceff4301 |
708813.0 | 2022-08-04 00:00:00 UTC | This Managed Futures ETF Becomes First to Be Rated Five Stars | DBMF | https://www.nasdaq.com/articles/this-managed-futures-etf-becomes-first-to-be-rated-five-stars | nan | nan | Managed futures have proven their value this year, performing strongly at a time when equities and bonds have both struggled, adding diversification and some fairly significant returns to portfolios in the first half of the year.
When it comes to managed futures ETFs, the iMGP DBi Managed Futures Strategy ETF (DBMF) continues to sit head and shoulders above the competition. Shortly on the heels of becoming a four-star fund, DBMF is now a five-star Morningstar-rated ETF, the highest-rated managed futures ETF on the market.
“For fifteen years, allocators heard from hedge funds and mutual funds said that it was impossible to run a good hedge fund strategy in an ETF. We hope DBMF changes their minds,” Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, said in a communication to VettaFi.
The “crisis alpha” that managed futures can offer during times of market volatility has been popular with investors in 2022, with managed futures strategies seeing steady inflows in the first half of 2022 and offering some significant returns. DBMF has net inflows of $353.47 million year-to-date as investors have flocked to the fund that offers hedge fund performance in an ETF wrapper with a year-to-date return of 23.14%, according to the fund’s website.
“In DBMF, we seek to outperform in the most straightforward way: through lower costs. This forms the cornerstone of our ‘index-plus’ philosophy,” explained Mathias Mamou-Mani, co-portfolio manager of DBMF and managing member at Dynamic Beta investments.
Within the broad Morningstar Alternatives category, DBMF is now one of only two funds with five stars; the other is the Innovator U.S. Equity Buffer ETF – October (BOCT), which uses options to buffer losses up to 9% within the S&P 500 but also caps upside performance should markets turn around. Globally, there are a total of only 35 ETFs that have a star rating within the broad alternatives category with Morningstar.
DBMF is designed to capture performance regardless of which direction equity markets are moving and adds diversification for portfolios because of its lack of correlation to both traditional equities and bonds. It is an actively managed fund that uses long and short positions mostly via futures contracts and forward contracts; these contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The fund is a unique one within managed futures ETFs in that it seeks to replicate the average performance of the top 20 managed futures hedge funds, offering better alpha capture through fee reductions that an ETF provides.
“We are proud to see the iMGP DBi Managed Futures Strategy ETF (DBMF) achieve a 5-star rating and be the sole managed futures ETF to be rated 5 stars by Morningstar. Three plus years ago our clients - institutions, wealth advisors and discretionary model allocators were seeking a smarter solution to traditionally expensive, single manager mutual funds. It is clear that DBMF and its subadvisor (Dynamic Beta investments) replication process provides this solution to access managed futures in a actively managed, low cost, and broadly diversified approach,” said Jeff Seeley, CEO of iM Global Partner Fund Management and Litman Gregory Wealth Management and deputy CEO of US iM Global Partner, in a communication to VettaFi.
For more news, information, and strategy, visit the Managed Futures Channel.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When it comes to managed futures ETFs, the iMGP DBi Managed Futures Strategy ETF (DBMF) continues to sit head and shoulders above the competition. Shortly on the heels of becoming a four-star fund, DBMF is now a five-star Morningstar-rated ETF, the highest-rated managed futures ETF on the market. We hope DBMF changes their minds,” Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, said in a communication to VettaFi. | When it comes to managed futures ETFs, the iMGP DBi Managed Futures Strategy ETF (DBMF) continues to sit head and shoulders above the competition. It is clear that DBMF and its subadvisor (Dynamic Beta investments) replication process provides this solution to access managed futures in a actively managed, low cost, and broadly diversified approach,” said Jeff Seeley, CEO of iM Global Partner Fund Management and Litman Gregory Wealth Management and deputy CEO of US iM Global Partner, in a communication to VettaFi. Shortly on the heels of becoming a four-star fund, DBMF is now a five-star Morningstar-rated ETF, the highest-rated managed futures ETF on the market. | “We are proud to see the iMGP DBi Managed Futures Strategy ETF (DBMF) achieve a 5-star rating and be the sole managed futures ETF to be rated 5 stars by Morningstar. It is clear that DBMF and its subadvisor (Dynamic Beta investments) replication process provides this solution to access managed futures in a actively managed, low cost, and broadly diversified approach,” said Jeff Seeley, CEO of iM Global Partner Fund Management and Litman Gregory Wealth Management and deputy CEO of US iM Global Partner, in a communication to VettaFi. When it comes to managed futures ETFs, the iMGP DBi Managed Futures Strategy ETF (DBMF) continues to sit head and shoulders above the competition. | We hope DBMF changes their minds,” Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, said in a communication to VettaFi. “We are proud to see the iMGP DBi Managed Futures Strategy ETF (DBMF) achieve a 5-star rating and be the sole managed futures ETF to be rated 5 stars by Morningstar. When it comes to managed futures ETFs, the iMGP DBi Managed Futures Strategy ETF (DBMF) continues to sit head and shoulders above the competition. | c7e05750-ee8f-4927-808b-83c5ba2fbffc |
708814.0 | 2022-07-26 00:00:00 UTC | The Benefits of Replication and DBMF’s Outperformance YTD | DBMF | https://www.nasdaq.com/articles/the-benefits-of-replication-and-dbmfs-outperformance-ytd | nan | nan | Managed futures have been a popular investment this year as part of a bigger pivot to liquid alternatives in an environment that has challenged traditional 60/40 portfolios. Managed futures strategies can be wildly varied, as they take long and short positions on a whole range of asset classes (commodities, currencies, equities, etc.), but one fund is offering managed futures hedge fund strategies within the ETF wrapper, with great success.
Inflows have been pouring into the iMGP DBi Managed Futures Strategy ETF (DBMF), the most popular managed futures ETF on the market, and for good reason: year-to-date, the fund has a 25.04% return when equities and bonds have struggled.
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and seeks to replicate the performance of the largest managed futures hedge funds while offering the savings that an ETF wrapper provides.
Athanasios Psarofagis, ETF analyst at Bloomberg, dug into liquid alternatives and the inflows and increased interest the space is seeing this year, given inflation and a rising interest rate environment that has been challenging for equities and bonds alike. He found that DBMF isn’t just outperforming this year, it’s outperforming the S&P 500 over the last three-year time period, measured through the SPDR S&P 500 ETF Trust (SPY).
Image source: Athanasios Psarofagis's Twitter
Hedge Fund Performance at ETF Prices
The underlying thesis of DBMF is a simple one: “We think hedge funds are smart, we think they generate alpha. They take too much in fees, and if we can copy it cheaply, we’ll do as well or better than they do,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the sub-advisor of the fund, on a recent podcast.
Dynamic Beta investments believes that fee reduction “is the purest form of alpha” when it comes to hedge funds. Much of the alpha generated by hedge fund strategies is eaten up in fees, meaning that a large portion of the profits is never realized by investors. Through the mechanisms of the ETF vehicle, those fees can be drastically reduced and the profits preserved.
Beer discussed the challenges and value of replication, the history behind DBMF and the liquid alternatives industry as a whole, and dove into alpha generation on the “Flirting with Models” podcast hosted by Corey Hoffstein, CIO and co-founder of Newfound Research.
“The alpha generation there is factor tilts, but it’s short-term factor tilts," Beer explained of the managed futures strategy that hedge funds utilize. “It’s shorter-term, it’s rotations, it’s things that are moving in the market.”
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
In short, this means that the fund utilizes existing hedge fund strategies, pulled from 20 of the largest managed futures hedge funds through the performance data of the SocGen CTA Hedge Fund index, thereby eliminating bias and performance outliers that can happen when following just a single-issuer strategy.
“If you’re going to do replication right, you’ve kind of got to try to get yourself, as the allocator, out of the way as much as possible,” explained Beer.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and seeks to replicate the performance of the largest managed futures hedge funds while offering the savings that an ETF wrapper provides. Beer discussed the challenges and value of replication, the history behind DBMF and the liquid alternatives industry as a whole, and dove into alpha generation on the “Flirting with Models” podcast hosted by Corey Hoffstein, CIO and co-founder of Newfound Research. Inflows have been pouring into the iMGP DBi Managed Futures Strategy ETF (DBMF), the most popular managed futures ETF on the market, and for good reason: year-to-date, the fund has a 25.04% return when equities and bonds have struggled. | Inflows have been pouring into the iMGP DBi Managed Futures Strategy ETF (DBMF), the most popular managed futures ETF on the market, and for good reason: year-to-date, the fund has a 25.04% return when equities and bonds have struggled. DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and seeks to replicate the performance of the largest managed futures hedge funds while offering the savings that an ETF wrapper provides. | Inflows have been pouring into the iMGP DBi Managed Futures Strategy ETF (DBMF), the most popular managed futures ETF on the market, and for good reason: year-to-date, the fund has a 25.04% return when equities and bonds have struggled. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and seeks to replicate the performance of the largest managed futures hedge funds while offering the savings that an ETF wrapper provides. DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and seeks to replicate the performance of the largest managed futures hedge funds while offering the savings that an ETF wrapper provides. Inflows have been pouring into the iMGP DBi Managed Futures Strategy ETF (DBMF), the most popular managed futures ETF on the market, and for good reason: year-to-date, the fund has a 25.04% return when equities and bonds have struggled. DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | ef392c62-e807-4f9b-b91a-130001097a3c |
708815.0 | 2022-07-22 00:00:00 UTC | How Does DBMF Stack Up Against Mutual Funds? | DBMF | https://www.nasdaq.com/articles/how-does-dbmf-stack-up-against-mutual-funds | nan | nan | Managed futures, a liquid alternatives strategy that has gained attention for its ability to offer performance (or “crisis alpha") and returns in an environment where bonds and equities are both challenged, aren’t just for hedge funds anymore. Managed futures strategies are offered in mutual funds and exchange traded funds, but how exactly does the top-performing managed futures ETF stack up against its mutual fund peers?
The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and has brought in over $300 million in flows year-to-date with returns of 26.99% as of 20 July 2022, per the website.
It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via the fund's Cayman Islands subsidiary).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value, and it takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually and has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
So How Does It Stack Up?
AQR offers its AQR Managed Futures Strategy Fund (AQMIX) for institutional investors as well as an R6 share class and an N class that have all performed strongly this year. Access to these strategies, however, has limitations; mutual funds can often be platform-dependent, and as an institutional investor share class, AQMIX requires a minimum investment of $5 million with net expenses of 1.25%.
The Pimco TRENDS Managed Futures Strategy Fund (PQTAX) is a five-star rated fund with Morningstar. The fund has net expenses of 1.83%, and while there aren’t minimum investment requirements, as class-A shares, the fund has front-end sales charges that begin at 5.5% for investments that are less than $50,000, with five breakpoints that end in a 0% charge if investing over $1 million. It means that when investing, an investor pays a fee up front depending on how much they're investing, unless it is $1 million or more, and then the amount left after paying the fee is what actually gets invested.
DBMF uses managed futures hedge fund strategies but offers this through the ETF wrapper that is available to anyone. While AQMIX has had stronger performance this year, the ease of access to a strategy that has historically been locked away behind hedge funds without the requirements that can come with mutual funds has seen DBMF take off this year with investors.
The position that DBMF takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. Essentially, it averages out the performance of the top 20 managed futures hedge funds and then seeks to replicate that performance. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF has management fees that are significantly lower than those of hedge funds, allowing the fund to capture more of the alpha potential of the fund performance (fee alpha), without carrying the minimum investment requirements that mutual funds have. The fund is currently rated at four stars with Morningstar.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and has brought in over $300 million in flows year-to-date with returns of 26.99% as of 20 July 2022, per the website. The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value, and it takes short positions in derivatives with exposures expected to fall in value. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and has brought in over $300 million in flows year-to-date with returns of 26.99% as of 20 July 2022, per the website. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value, and it takes short positions in derivatives with exposures expected to fall in value. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF has management fees that are significantly lower than those of hedge funds, allowing the fund to capture more of the alpha potential of the fund performance (fee alpha), without carrying the minimum investment requirements that mutual funds have. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds and has brought in over $300 million in flows year-to-date with returns of 26.99% as of 20 July 2022, per the website. | DBMF uses managed futures hedge fund strategies but offers this through the ETF wrapper that is available to anyone. DBMF has management fees that are significantly lower than those of hedge funds, allowing the fund to capture more of the alpha potential of the fund performance (fee alpha), without carrying the minimum investment requirements that mutual funds have. The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. | 9df2d262-af87-48d5-b722-fe7aedd4c46b |
708816.0 | 2022-07-18 00:00:00 UTC | Are Managed Futures the Ultimate Traditional Portfolio Diversifier? | DBMF | https://www.nasdaq.com/articles/are-managed-futures-the-ultimate-traditional-portfolio-diversifier | nan | nan | In a poll taken in June at Mercer’s Global Investment Forum U.S., asset managers and asset owners globally reported uncertainty about the direction the global economy is going, a sentiment that has been reflected in volatile markets for most of 2022.
Over 350 asset owners and asset managers were polled, according to the press release, and predictions for the economic outlook were: 26% believe there is an impending overheating of the economy on the horizon, 24% believe the economy is headed for stagflation, and 22% believe there will be a hard landing (recession) for the economy.
Perhaps of even greater significance, a full 58% of attendees to the forum believe that equity allocations in portfolios should be “meaningfully different” from the current market-cap weights of equities. In a challenging environment for the traditional 60/40 equity and bond portfolio, diversification can play a crucial role, both in offering hedging opportunities as well as potentially providing uncorrelated performance to some of the biggest pain points currently in portfolios.
“Asset owners are revisiting their strategic asset allocations to consider the resilience of their portfolios against increasing inflationary pressures, volatility, and potential disruptions to economic growth. Many are responding to the current environment by seeking to maximize their portfolio diversification within the context of their investment mandate,” said Rich Nuzum, president of investments and retirement at Mercer, in the press release.
Diversification With Hedge Fund Strategies at ETF Prices
Managed futures tend to perform strongly during periods of volatility and drawdown and typically are popular during those times, partially for the diversification opportunities they present (very low to no correlation to equities and bonds) and partially for the income opportunities they present when everything else is struggling (crisis alpha). Because they invest in futures contracts, they can carry low, and sometimes negative, correlations to equities and bonds, something that many advisors and investors are looking for in these challenging market times.
Image source: Dynamic Beta Investments
Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The year-to-date return for the fund is currently 27.05% according to the DBMF website.
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image source: Dynamic Beta Investments Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The year-to-date return for the fund is currently 27.05% according to the DBMF website. DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | Image source: Dynamic Beta Investments Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The year-to-date return for the fund is currently 27.05% according to the DBMF website. DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | Image source: Dynamic Beta Investments Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The year-to-date return for the fund is currently 27.05% according to the DBMF website. DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | Image source: Dynamic Beta Investments Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The year-to-date return for the fund is currently 27.05% according to the DBMF website. DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | 1bfe57fb-525b-454c-9cf3-4c124588824b |
708817.0 | 2022-07-15 00:00:00 UTC | Stocks Rally Once More: Investing in Times of Volatility | DBMF | https://www.nasdaq.com/articles/stocks-rally-once-more%3A-investing-in-times-of-volatility | nan | nan | Markets remain tremulous, driven incessantly this year by each new economic report. The latest is the release of June’s retail sales, up 1% as consumers continued spending during historic inflationary times.
Markets had previously fallen on the release of the 9.1% CPI reading for June, released Wednesday, but now have rallied to end the week on a positive for the first time in five sessions, reported the WSJ. The uncertainty by investors continues to see markets seesaw back and forth, a trend that is likely to continue as economists and analysts increasingly weigh recession odds in the face of an aggressive Fed and soaring inflation.
“Recession risks have risen since the beginning of the year,” Mike Bell,global marketstrategist at J.P. Morgan Asset Management, told WSJ. “If we don’t get any signal of consumer retrenchment, maybe it’s not as bad as people fear, but if we do get that it’s a signal recession risk is materializing.”
June also saw retail sales increasing by 1% in the U.S., and while some of that increase is attributed to higher prices in goods and services, some indicate that the U.S. consumer is still able to navigate the price increases, for now, Michelle Meyer, chief U.S. economist at Mastercard Economics Institute, told WSJ.
“Consumers are still spending quite a bit of money,” said Jeff Harmening, CEO of General Mills on anearnings callin June. “Now as they look ahead, they get nervous because they see inflation and so forth. But right now, the consumer is in a decent place.”
Earnings season has kicked off with many financial institutions reporting better than expected profits but also recording a slowing in mortgage lending. Housing and energy were big contributors to last month’s inflation number, and because rent prices tend to lag six to nine months behind, housing is expected to continue to be an inflationary pressure likely through the end of the year.
Historic inflation coupled with a job market that is still exhibiting tight growth could see the Fed potentially raise interest rates even more aggressively than 0.75% at their meeting next week, something that Federal Governor Waller has said he is possibly open to, likely to create more volatility and strong market response.
“We have important data releases on retail sales and housing coming in before the July meeting,” Waller had said Thursday ahead of the retail report today. “If that data comes in materially stronger than expected, it would make me lean towards a larger hike at the July meeting to the extent it shows demand is not slowing down fast enough to get inflation down.”
Investing for Volatility and Uncertainty With Managed Futures
As markets continue to be driven by each new piece of economic data, investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF).
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “If that data comes in materially stronger than expected, it would make me lean towards a larger hike at the July meeting to the extent it shows demand is not slowing down fast enough to get inflation down.” Investing for Volatility and Uncertainty With Managed Futures As markets continue to be driven by each new piece of economic data, investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | “If that data comes in materially stronger than expected, it would make me lean towards a larger hike at the July meeting to the extent it shows demand is not slowing down fast enough to get inflation down.” Investing for Volatility and Uncertainty With Managed Futures As markets continue to be driven by each new piece of economic data, investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | “If that data comes in materially stronger than expected, it would make me lean towards a larger hike at the July meeting to the extent it shows demand is not slowing down fast enough to get inflation down.” Investing for Volatility and Uncertainty With Managed Futures As markets continue to be driven by each new piece of economic data, investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | “If that data comes in materially stronger than expected, it would make me lean towards a larger hike at the July meeting to the extent it shows demand is not slowing down fast enough to get inflation down.” Investing for Volatility and Uncertainty With Managed Futures As markets continue to be driven by each new piece of economic data, investors looking for a fund that has performed well during volatility should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | 251fa6b6-cf7d-41ee-8a4e-7e52ebf977c7 |
708818.0 | 2022-07-08 00:00:00 UTC | This Managed Futures ETF Competes With Mutual Fund Peers | DBMF | https://www.nasdaq.com/articles/this-managed-futures-etf-competes-with-mutual-fund-peers | nan | nan | Managed futures are drawing eyes and flows in the first half of 2022, with no slowing in sight. In a market driven by volatility and uncertainty, they have been a bright spot of performance and opportunity for portfolios this year.
The iMGP DBi Managed Futures Strategy ETF (DBMF) is the top performing managed futures ETF on the market and currently has assets under management greater than some of its mutual fund peers. The year-to-date return for the fund is currently 26.11% according to the DBMF website and the fund has an AUM currently of $394.3 million per FactSet.
Image courtesy of Dynamic Beta investments, data as of the end of June 2022
DBMF’s AUM has increased 458% between the end of 2021 and the end of June 2022 — this includes performance-based increases, according to Viral Solanki, CFA and director of trading at Dynamic Beta investments, the sub-advisor for the fund, in a communication to VettaFi.
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The iMGP DBi Managed Futures Strategy ETF (DBMF) is the top performing managed futures ETF on the market and currently has assets under management greater than some of its mutual fund peers. The year-to-date return for the fund is currently 26.11% according to the DBMF website and the fund has an AUM currently of $394.3 million per FactSet. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is the top performing managed futures ETF on the market and currently has assets under management greater than some of its mutual fund peers. The year-to-date return for the fund is currently 26.11% according to the DBMF website and the fund has an AUM currently of $394.3 million per FactSet. Image courtesy of Dynamic Beta investments, data as of the end of June 2022 DBMF’s AUM has increased 458% between the end of 2021 and the end of June 2022 — this includes performance-based increases, according to Viral Solanki, CFA and director of trading at Dynamic Beta investments, the sub-advisor for the fund, in a communication to VettaFi. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is the top performing managed futures ETF on the market and currently has assets under management greater than some of its mutual fund peers. The year-to-date return for the fund is currently 26.11% according to the DBMF website and the fund has an AUM currently of $394.3 million per FactSet. Image courtesy of Dynamic Beta investments, data as of the end of June 2022 DBMF’s AUM has increased 458% between the end of 2021 and the end of June 2022 — this includes performance-based increases, according to Viral Solanki, CFA and director of trading at Dynamic Beta investments, the sub-advisor for the fund, in a communication to VettaFi. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is the top performing managed futures ETF on the market and currently has assets under management greater than some of its mutual fund peers. The year-to-date return for the fund is currently 26.11% according to the DBMF website and the fund has an AUM currently of $394.3 million per FactSet. Image courtesy of Dynamic Beta investments, data as of the end of June 2022 DBMF’s AUM has increased 458% between the end of 2021 and the end of June 2022 — this includes performance-based increases, according to Viral Solanki, CFA and director of trading at Dynamic Beta investments, the sub-advisor for the fund, in a communication to VettaFi. | 505865d8-05fc-440a-b1a3-1cbfbbce5fd9 |
708819.0 | 2022-07-06 00:00:00 UTC | This Managed Futures ETF Saw Nothing but Inflows in June | DBMF | https://www.nasdaq.com/articles/this-managed-futures-etf-saw-nothing-but-inflows-in-june | nan | nan | Alternatives have seen a lot more interest in the first half of 2022 than they have in years, with advisors and investors seeking either hedges, performance, or some variation of both in a market environment that has caused traditional portfolio allocations to largely suffer. Managed futures have stepped into the spotlight for the ability to provide “crisis alpha” during market dislocations and respond to changing market conditions as they happen.
The iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star Morningstar rated fund and the highest-ranked managed futures ETF with Morningstar, experienced an influx of inflows in June.
Image source: ETFdb.com
Over June, DBMF brought in $134.64 million. For comparison, over the same time a year ago, the fund brought in $4.29 million. In the eyes of advisors and investors, now is the time for managed futures. Though those like Corey Hoffstein, co-founder and CIO of Newfound Research, who utilize the fund in a return stacking model, believe that they’re a great all-weather allocation and diversifier for a portfolio.
“If you look at managed futures historically, whether you look at just the individual sleeves like a trend on rates, trend on equities, trend on commodities, trend on currencies, what you find is they actually perform well historically in both inflation and deflationary environments,” Hoffstein said in a recent interview.
See also: Corey Hoffstein on Return Stacking and Managed Futures
DBMF a Multi-Solution Option for Portfolios
Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The year-to-date return for the fund is currently 25.11% according to the DBMF website.
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | See also: Corey Hoffstein on Return Stacking and Managed Futures DBMF a Multi-Solution Option for Portfolios Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star Morningstar rated fund and the highest-ranked managed futures ETF with Morningstar, experienced an influx of inflows in June. Image source: ETFdb.com Over June, DBMF brought in $134.64 million. | The iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star Morningstar rated fund and the highest-ranked managed futures ETF with Morningstar, experienced an influx of inflows in June. See also: Corey Hoffstein on Return Stacking and Managed Futures DBMF a Multi-Solution Option for Portfolios Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. Image source: ETFdb.com Over June, DBMF brought in $134.64 million. | The iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star Morningstar rated fund and the highest-ranked managed futures ETF with Morningstar, experienced an influx of inflows in June. See also: Corey Hoffstein on Return Stacking and Managed Futures DBMF a Multi-Solution Option for Portfolios Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. Image source: ETFdb.com Over June, DBMF brought in $134.64 million. | See also: Corey Hoffstein on Return Stacking and Managed Futures DBMF a Multi-Solution Option for Portfolios Whether advisors are seeking a portfolio diversifier, a hedge during market volatility, or performance potential during market dislocations, the iMGP DBi Managed Futures Strategy ETF (DBMF) can be a possible solution for all of the above. The iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star Morningstar rated fund and the highest-ranked managed futures ETF with Morningstar, experienced an influx of inflows in June. Image source: ETFdb.com Over June, DBMF brought in $134.64 million. | ff21853e-8cb3-4bc3-ad74-63cbc15a1516 |
708820.0 | 2022-06-30 00:00:00 UTC | ETF of the Week: The iMGP DBi Managed Futures Strategy ETF (DBMF) | DBMF | https://www.nasdaq.com/articles/etf-of-the-week%3A-the-imgp-dbi-managed-futures-strategy-etf-dbmf | nan | nan | VettaFi’s vice chairman Tom Lydon discussed the iMGP DBi Managed Futures Strategy ETF (DBMF) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”
Managed futures have traditionally been a strategy utilized by hedge funds that institutional investors have used for diversification opportunities.
“It’s nice to see, especially at a time when alternative strategies have become really popular with all of this market volatility, that individual investors and advisors can also diversify into these managed futures strategies,” Lydon said.
DBMF has gained significantly this year, upwards of 25%, when equities and bonds have largely underperformed. This kind of performance led to managed futures being dubbed the “crisis alpha” generators during the financial crisis of 2008 because they tend to do well during times of market dislocation and challenge.
Many advisors and investors might shy away from futures products in general for their complexities, but a fund like this is worth digging into and understanding how it works. DBMF is pulling the levers of short and long positioning on equities, commodities, fixed income, and currencies through the use of futures contracts.
“In the fixed income market, most advisors are more concerned about the volatility that we’ve seen in fixed income even more than the volatility that we’ve seen in equities,” Lydon explained. “Advisors are paring back their fixed income allocation and looking to noncorrelated areas, and we’ve talked about this: managed futures is noncorrelated.”
Advisors and Investors are Seeking Alternatives
Over the last decade, some of the best opportunities were within U.S. large cap growth stocks, but most growth-oriented stocks, particularly the FAANG stocks, have been underperforming the S&P 500 in 2022. Aside from fixed income allocations, advisors and investors are selling out of some of these growth stocks to make way for alternatives within their portfolios, such as managed futures.
DBMF has an expense ratio of 0.95%, which, while on the higher end for an ETF, is still significantly lower than the hedge fund options whose performance it seeks to replicate.
“It’s really modern-day management and modern-day pricing,” Lydon said.
Addressing the concerns that investors sometimes have of missing the peak on a fund’s performance, Lydon explained that advisors and investors should consider the following when looking at DBMF: are stocks fairly valued in their opinion, if inflation is at its end, and if interest rates are going to continue to rise. Many analysts believe that while inflation will come down, it will likely linger around 5% for an extended period, and DBMF can provide potential hedging opportunities for such an environment.
“Having a five percent allocation into something like this for the next two or three years is not going to hurt you, number one, and if you’re concerned about volatility with a hedge fund-type structure, rate it on a 200-day average,” Lydon explained.
Listen to the Entire ETF of the Week Episode Featuring Tom Lydon:
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VettaFi’s vice chairman Tom Lydon discussed the iMGP DBi Managed Futures Strategy ETF (DBMF) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Managed futures have traditionally been a strategy utilized by hedge funds that institutional investors have used for diversification opportunities. DBMF has an expense ratio of 0.95%, which, while on the higher end for an ETF, is still significantly lower than the hedge fund options whose performance it seeks to replicate. DBMF has gained significantly this year, upwards of 25%, when equities and bonds have largely underperformed. | VettaFi’s vice chairman Tom Lydon discussed the iMGP DBi Managed Futures Strategy ETF (DBMF) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Managed futures have traditionally been a strategy utilized by hedge funds that institutional investors have used for diversification opportunities. DBMF has gained significantly this year, upwards of 25%, when equities and bonds have largely underperformed. DBMF is pulling the levers of short and long positioning on equities, commodities, fixed income, and currencies through the use of futures contracts. | VettaFi’s vice chairman Tom Lydon discussed the iMGP DBi Managed Futures Strategy ETF (DBMF) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Managed futures have traditionally been a strategy utilized by hedge funds that institutional investors have used for diversification opportunities. Addressing the concerns that investors sometimes have of missing the peak on a fund’s performance, Lydon explained that advisors and investors should consider the following when looking at DBMF: are stocks fairly valued in their opinion, if inflation is at its end, and if interest rates are going to continue to rise. DBMF has gained significantly this year, upwards of 25%, when equities and bonds have largely underperformed. | Addressing the concerns that investors sometimes have of missing the peak on a fund’s performance, Lydon explained that advisors and investors should consider the following when looking at DBMF: are stocks fairly valued in their opinion, if inflation is at its end, and if interest rates are going to continue to rise. VettaFi’s vice chairman Tom Lydon discussed the iMGP DBi Managed Futures Strategy ETF (DBMF) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Managed futures have traditionally been a strategy utilized by hedge funds that institutional investors have used for diversification opportunities. DBMF has gained significantly this year, upwards of 25%, when equities and bonds have largely underperformed. | 02d356e2-4c76-4298-b9a0-617fe0d0a09f |
708821.0 | 2022-06-22 00:00:00 UTC | Flows Into Managed Futures Funds Have Already Doubled in 2022 | DBMF | https://www.nasdaq.com/articles/flows-into-managed-futures-funds-have-already-doubled-in-2022 | nan | nan | After a decade of relatively smooth sailing for U.S. markets, advisors and investors have found themselves thrown into choppy waters in 2022 as market volatility remains persistent. In an environment of rapidly rising interest rates by the Federal Reserve, quantitative tightening, and inflation still soaring, many of the traditional portfolio allocations have felt the squeeze as markets have plummeted.
“There are trillions of dollars of ETF-based model portfolios that thrived in a world where 60/40 worked beautifully year after year. Those days are over,” said Andrew Beer in a communication to VettaFi. Beer is co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star rated fund that currently has over $300 million in AUM, the largest managed futures ETF to date, and a managing member at Dynamic Beta Investments, the sub-advisor to the fund.
As advisors search for income opportunities and hedges for their portfolios against inflation, volatility, rising interest rates, and a growing list of categories that are providing pressures on equity and bond performance managed futures are filtering to the top of the list for many.
Image courtesy of Dynamic Beta Investments
In 2021 there was $2.237 billion invested in managed futures mutual funds and ETFs; 2022 has already seen that more than double as of the end of May at $4.883 billion according to Dynamic Beta Investments research.
Managed futures are an attractive option for many in the current environment for their ability to offer performance and return potential regardless of the direction of market movements, their ability to provide “crisis alpha” during times of market stress, and the diversification opportunities they provide due to their lack of correlation to both equities and bonds.
“From a diversification perspective, it is blindingly obvious that every model portfolio should have exposure to managed futures. The only debate should be whether it’s 5% or 20%,” said Beer.
Capturing Hedge Fund Performance in an ETF
The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds. The fund seeks to replicate the averaged performance of the largest managed futures hedge funds while offering better return capture for investors through the reduced fees that an ETF wrapper provides.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Beer is co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star rated fund that currently has over $300 million in AUM, the largest managed futures ETF to date, and a managing member at Dynamic Beta Investments, the sub-advisor to the fund. Capturing Hedge Fund Performance in an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | Beer is co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star rated fund that currently has over $300 million in AUM, the largest managed futures ETF to date, and a managing member at Dynamic Beta Investments, the sub-advisor to the fund. Capturing Hedge Fund Performance in an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | Beer is co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star rated fund that currently has over $300 million in AUM, the largest managed futures ETF to date, and a managing member at Dynamic Beta Investments, the sub-advisor to the fund. Capturing Hedge Fund Performance in an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | Capturing Hedge Fund Performance in an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund that seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds. Beer is co-portfolio manager of the iMGP DBi Managed Futures Strategy ETF (DBMF), a four-star rated fund that currently has over $300 million in AUM, the largest managed futures ETF to date, and a managing member at Dynamic Beta Investments, the sub-advisor to the fund. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | 5401e0d2-d5fc-4ad9-82b7-c675ae758e51 |
708822.0 | 2022-06-17 00:00:00 UTC | Most CEOs Are Now Expecting a Recession — Is Your Portfolio Ready? | DBMF | https://www.nasdaq.com/articles/most-ceos-are-now-expecting-a-recession-is-your-portfolio-ready | nan | nan | CEOs and businesses face a number of challenges in the current economic environment, and their sentiments reflect that. With more than half of CEOs now expecting a recession in the coming 12–18 months, positioning portfolios for a challenging economic cycle could be more important than ever, and managed futures can offer an abundance of opportunities for advisors, investors, and portfolios.
A recent survey from the Conference Board of 750 CEOs and C-suite executives globally has found that over 60% are anticipating recession in their region by the end of 2023, while a full 15% believe that their primary region of operations is already experiencing recession.
The survey was conducted between May 10–24, well ahead of the most recent Fed meeting that saw markets plummet leading up to the meeting, recover briefly, and then fall further. The consumer confidence index has remained higher, but consumers are often inherently focused on the shorter term.
“There is this gap between how consumers are viewing this—they’re not as worried as CEOs are,” Dana Peterson, chief economist for the Conference Board, told Wall Street Journal. “But CEOs are trained to look 12 to 18 months down the line. Most consumers? The next few months, or three to six months, is really what they’re thinking about.”
Trend Following Data
Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages in the current environment, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF).
As of June 16, the fund was trading for $32.90 per share and was above both its 50-day simple moving average of $31.57 and its 200-day simple moving average of $28.68. The simple moving average is one of the easiest ways to calculate moving averages; the SMA adds all of the daily closing prices within the time frame and then divides by the number of days. Trend-followers who utilize technical analysis to invest generally seek to buy funds that are performing over their moving averages and sell when they fall below.
DBMF Provides Portfolio Diversification and Alpha
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds. The year-to-date return for DBMF is currently 30.49%.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts and forward contracts. These contracts span across domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
By capturing hedge fund performance within an ETF wrapper, the fund generates alpha inherently in the savings passed on from management fees, allowing investors to capture more of the return stream that mimics the averaged performance of the largest managed futures hedge funds.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The next few months, or three to six months, is really what they’re thinking about.” Trend Following Data Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages in the current environment, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF Provides Portfolio Diversification and Alpha DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The year-to-date return for DBMF is currently 30.49%. | DBMF Provides Portfolio Diversification and Alpha DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The next few months, or three to six months, is really what they’re thinking about.” Trend Following Data Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages in the current environment, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). The year-to-date return for DBMF is currently 30.49%. | The next few months, or three to six months, is really what they’re thinking about.” Trend Following Data Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages in the current environment, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF Provides Portfolio Diversification and Alpha DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The year-to-date return for DBMF is currently 30.49%. | The next few months, or three to six months, is really what they’re thinking about.” Trend Following Data Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages in the current environment, should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF Provides Portfolio Diversification and Alpha DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The year-to-date return for DBMF is currently 30.49%. | 0475df23-c6ab-4110-9856-f95484693251 |
708823.0 | 2022-06-15 00:00:00 UTC | Corey Hoffstein on Return Stacking and Managed Futures | DBMF | https://www.nasdaq.com/articles/corey-hoffstein-on-return-stacking-and-managed-futures | nan | nan | I recently had the good fortune to sit down with Corey Hoffstein, co-founder and CIO of Newfound Research, to discuss return stacking and return stacking models, a more unique approach to investing in stocks, bonds, and alternatives that can provide more traditional beta-like returns while also generating alpha from managed futures or other alternatives.
Hoffstein explained that return stacking enables a newer take on the kind of investing strategies that institutional investors have been using over the last four decades. It allows investors to capture alpha opportunities without being at the expense of beta allocations.
“The whole core concept was to say ‘we don’t have to make this trade-off of either/or: we can have our beta and have our alternatives and diversifiers as well,’” Hoffstein explained. “None of that was really available to retail investors unless they had margin accounts, which tended to be expensive [due to the margin/cost of borrowing being expensive], or unless they were willing to trade futures, which some are; most aren’t.”
Return stacking allows for a newer take on the traditional 60/40 that seeks to stay invested in the globally diversified risk premium allocations of stocks and bonds that will continue to drive markets over the long-term, but makes space within the portfolio to also allocate for inflation volatility. Something to which the traditional 60/40 portfolio is particularly susceptible.
The return stacking concept can be seen as a 60/40/+, wherein a return stacking model the 60/40 is achieved through investment into a fund like the WisdomTree U.S. Efficient Core Fund (NTSX), an ETF that invests in both large-cap U.S. equities as well as U.S. Treasury futures contracts and boosts capital efficiency for a portfolio.
Through the use of a 1.5x leverage by NTSX to provide 60% equity and 40% U.S. Treasuries for the portfolio by allocating 2/3 of the portfolio assets to NTSX, the performance of the NTSX allocation mimics the Vanguard Balanced Index Fund Investor Shares (VBINX), Vanguard's U.S. 60/40 fund. At the same time, 1/3 of the portfolio’s assets are freed up for alternative allocations, such as managed futures.
Graph courtesy of Corey Hoffstein, dates as of 06/08/22
In the current environment, some advisors might look toward commodities for this remaining allocation, but because of their heavy weighting towards energy and positive return potential that is linked heavily to inflationary periods and little else, Hoffstein doesn’t see them as an ideal option for investors in all environments.
Why Managed Futures and DBMF Work for Return Stacking
The temptation might exist to look at managed futures and the iMGP DBi Managed Futures Strategy ETF (DBMF) as a returns play in a return stacking model that utilizes NTSX and DBMF, given its outperformance this year (the fund’s year-to-date return is currently 30.49% as of 6/14/22 per the website). For Hoffstein, the inclusion of managed futures and DBMF, in particular, is about so much more.
“If you look at managed futures historically, whether you look at just the individual sleeves like a trend on rates, trend on equities, trend on commodities, trend on currencies, what you find is they actually perform well historically in both inflation and deflationary environments,” Hoffstein said.
The great appeal of managed futures funds is their optionality within so many different spaces, including long and short positions in commodities, long/short positions on interest rates, and long/short positions on currencies such as the U.S. dollar. Because of the number of markets managed futures trade in, they can position to respond better to the specific type of inflation that is happening.
DBMF in particular is appealing for a return stacking model because it avoids the dispersion that is common within managed futures hedge fund performance, explained Hoffstein. It does so by seeking to track the averaged performance of existing hedge fund strategies, pulled from 20 of the largest managed futures hedge funds through the performance data of the SocGen CTA Hedge Fund index, thereby eliminating bias and performance outliers that can happen when following just a single issuer strategy.
“What I love about what DBMF is trying to achieve, and has historically achieved, is giving you a highly correlated return stream to the broad index and completely eliminating the underlying fees associated with the hedge funds,” Hoffstein said. “You can really think about capturing the index plus 150 or 200 basis points over time because you’re eliminating so much of that cost.”
Hoffstein likens investing in DBMF as a managed futures option to investing in the S&P 500 as an equities option because of its low cost for the exact kind of exposure desired. It’s a strong core allocation for managed futures and works to fill the inflation volatility gaps that traditional 60/40 portfolios carry.
Newfound Research also utilizes DBMF in some of its portfolio models.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF in particular is appealing for a return stacking model because it avoids the dispersion that is common within managed futures hedge fund performance, explained Hoffstein. Why Managed Futures and DBMF Work for Return Stacking The temptation might exist to look at managed futures and the iMGP DBi Managed Futures Strategy ETF (DBMF) as a returns play in a return stacking model that utilizes NTSX and DBMF, given its outperformance this year (the fund’s year-to-date return is currently 30.49% as of 6/14/22 per the website). For Hoffstein, the inclusion of managed futures and DBMF, in particular, is about so much more. | Why Managed Futures and DBMF Work for Return Stacking The temptation might exist to look at managed futures and the iMGP DBi Managed Futures Strategy ETF (DBMF) as a returns play in a return stacking model that utilizes NTSX and DBMF, given its outperformance this year (the fund’s year-to-date return is currently 30.49% as of 6/14/22 per the website). DBMF in particular is appealing for a return stacking model because it avoids the dispersion that is common within managed futures hedge fund performance, explained Hoffstein. For Hoffstein, the inclusion of managed futures and DBMF, in particular, is about so much more. | Why Managed Futures and DBMF Work for Return Stacking The temptation might exist to look at managed futures and the iMGP DBi Managed Futures Strategy ETF (DBMF) as a returns play in a return stacking model that utilizes NTSX and DBMF, given its outperformance this year (the fund’s year-to-date return is currently 30.49% as of 6/14/22 per the website). For Hoffstein, the inclusion of managed futures and DBMF, in particular, is about so much more. DBMF in particular is appealing for a return stacking model because it avoids the dispersion that is common within managed futures hedge fund performance, explained Hoffstein. | Why Managed Futures and DBMF Work for Return Stacking The temptation might exist to look at managed futures and the iMGP DBi Managed Futures Strategy ETF (DBMF) as a returns play in a return stacking model that utilizes NTSX and DBMF, given its outperformance this year (the fund’s year-to-date return is currently 30.49% as of 6/14/22 per the website). DBMF in particular is appealing for a return stacking model because it avoids the dispersion that is common within managed futures hedge fund performance, explained Hoffstein. For Hoffstein, the inclusion of managed futures and DBMF, in particular, is about so much more. | f3366b2c-0739-4441-9e32-a32e7cc7f475 |
708824.0 | 2022-06-10 00:00:00 UTC | Why Now Is Absolutely the Time for Managed Futures | DBMF | https://www.nasdaq.com/articles/why-now-is-absolutely-the-time-for-managed-futures | nan | nan | The recent release of May’s consumer price index has come as a surprise to many, with words like “shocking” trending in headlines. While it’s an indicator that inflation is yet to peak, trying to ascertain exactly where that peak lies remains a difficult task. Managed futures can help take the added stress out of trying to second guess inflation, the Fed, or both.
Managed futures offer a host of benefits for portfolios: They are highly diversified as they generally carry low to no correlation to equities and bonds, they seek to perform no matter which way markets are moving, and most importantly, they generally do exceedingly well during volatility.
The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within futures contracts and forward contracts. These contracts span across domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
DBMF is unique in that it seeks to track and mimic the averaged performance of some of the largest managed futures hedge funds. The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine.
This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
By offering managed futures hedge fund performance within an ETF, the savings incurred in the fee reductions equate to automatic alpha for investors.
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8-10% annually.
Utilizing the Dynamic Beta Engine allows the fund to track trends, capturing the pockets of performance in volatility and generating what has been dubbed “crisis alpha.” By trend tracking, the fund avoids individual manager bias that can sometimes be seen in singular hedge fund performance, while capturing returns by pulling levers within the futures market to pivot long or short on a variety of asset classes.
DBMF has a management fee of 0.85% and an additional ten bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF is unique in that it seeks to track and mimic the averaged performance of some of the largest managed futures hedge funds. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF is unique in that it seeks to track and mimic the averaged performance of some of the largest managed futures hedge funds. | DBMF is unique in that it seeks to track and mimic the averaged performance of some of the largest managed futures hedge funds. The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF is unique in that it seeks to track and mimic the averaged performance of some of the largest managed futures hedge funds. | 147da6fd-bc4f-4c33-a7df-faaf3a66b2c7 |
708825.0 | 2022-06-07 00:00:00 UTC | DBMF Is Now a 4-Star Rated Managed Futures Fund | DBMF | https://www.nasdaq.com/articles/dbmf-is-now-a-4-star-rated-managed-futures-fund | nan | nan | The iMGP DBi Managed Futures Strategy ETF (DBMF) is now a four-star fund and is the highest-rated managed futures ETF with Morningstar.
Managed futures strategies have become an increasingly popular diversifier for portfolios in the current market environment of volatility and underperformance of equities and bonds. DBMF takes a unique approach in its strategy: it seeks to capture the performance of hedge fund-managed futures strategies within the ETF wrapper, offering savings and alpha potential for investors.
“When you outperform by cutting out fees and expenses, the goal is to consistently rise in the rankings: top quartile after three years and top decile after five. DBMF is on track to achieve this,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, in a communication to VettaFi.
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to identify how the largest commodity-trading advisor hedge funds have their allocation by analyzing the trailing 60-day performance of CTA hedge funds. It determines a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions), offering similar performance with greatly reduced fees.
“It is unprecedented to have a managed futures ETF with the same Morningstar rating as more expensive mutual funds run by hedge fund industry luminaries like Man AHL and Abbey Capital,” Beer said.
DBMF is designed to capture performance regardless of which direction equity markets are moving and adds diversification for portfolios because of its lack of correlation to both traditional equities as well as bonds. It is an actively managed fund that uses long and short positions mostly via futures contracts and forward contracts; these contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
“The problem with most five-star funds is that they got lucky then the world changed. Our goal is for clients to look back in five years and have experienced consistent, reliable outperformance, and avoid the well-documented whipsaws of chasing hot dots,” explained Beer.
DBMF has a year-to-date return of 24.14% and carries a management fee of 0.85% with an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is now a four-star fund and is the highest-rated managed futures ETF with Morningstar. DBMF takes a unique approach in its strategy: it seeks to capture the performance of hedge fund-managed futures strategies within the ETF wrapper, offering savings and alpha potential for investors. DBMF is on track to achieve this,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, in a communication to VettaFi. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is now a four-star fund and is the highest-rated managed futures ETF with Morningstar. DBMF takes a unique approach in its strategy: it seeks to capture the performance of hedge fund-managed futures strategies within the ETF wrapper, offering savings and alpha potential for investors. DBMF is on track to achieve this,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, in a communication to VettaFi. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is now a four-star fund and is the highest-rated managed futures ETF with Morningstar. DBMF takes a unique approach in its strategy: it seeks to capture the performance of hedge fund-managed futures strategies within the ETF wrapper, offering savings and alpha potential for investors. DBMF is on track to achieve this,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, in a communication to VettaFi. | The iMGP DBi Managed Futures Strategy ETF (DBMF) is now a four-star fund and is the highest-rated managed futures ETF with Morningstar. DBMF takes a unique approach in its strategy: it seeks to capture the performance of hedge fund-managed futures strategies within the ETF wrapper, offering savings and alpha potential for investors. DBMF is on track to achieve this,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the fund’s sub-advisor, in a communication to VettaFi. | cf1bbdb5-599b-428b-8877-94db8f361fbb |
708826.0 | 2022-06-02 00:00:00 UTC | In the Event of an Economic “Hurricane,” DBMF Will Ride the Waves | DBMF | https://www.nasdaq.com/articles/in-the-event-of-an-economic-hurricane-dbmf-will-ride-the-waves | nan | nan | JPMorgan Chase & Co.’s CEO, Jamie Dimon, warned investors yesterday that an “economic ‘hurricane'” was looming for the U.S. economy and to prepare for impact, reported Bloomberg.
Markets have struggled since the end of 2021, with volatility the only constant, and it’s a pattern that Dimon believes will extend going forward. Dimon believes that the war in Ukraine coupled with aggressive Fed actions will spell hard times ahead for the economy and markets.
“Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it,” Dimon said.
The JPMorgan CEO believes that the economy is currently “distorted” due to inflation and that makes it difficult to get accurate measurements. This distortion combined with the quantitative tightening that the Fed is undertaking — where the central bank begins shedding bonds from its portfolio as it works to reduce its ballooning balance sheets — in addition to increasing interest rates will ultimately spell disaster.
“That hurricane is right out there down the road coming our way,” Dimon said. "We just don't know if it's a minor one or Superstorm Sandy. You better brace yourself.”
Ride Out the Storm With DBMF
Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages should consider the iMGP DBi Managed Futures Strategy ETF (DBMF).
DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
As of June 1, the fund was selling for $31.85 per share and was above both its 50-day simple moving average of $30.80 and its 200-day simple moving average of $28.42. The simple moving average is one of the easiest ways to calculate moving averages; the SMA adds all of the daily closing prices within the time frame and then divides by the number of days. Trend-followers who utilize technical analysis to invest generally seek to buy funds that are performing over their moving averages and sell when they fall below.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span across domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You better brace yourself.” Ride Out the Storm With DBMF Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. You better brace yourself.” Ride Out the Storm With DBMF Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. | You better brace yourself.” Ride Out the Storm With DBMF Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | You better brace yourself.” Ride Out the Storm With DBMF Investors looking for a fund that has performed well during volatility, as well as trend-followers who are considering funds performing above their moving day averages should consider the iMGP DBi Managed Futures Strategy ETF (DBMF). DBMF is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | 3014a954-c8ae-4833-aa4a-f592e4030d9c |
708827.0 | 2022-05-27 00:00:00 UTC | Quant Hedge Funds Are Having a HeyDay: This ETF Captures | DBMF | https://www.nasdaq.com/articles/quant-hedge-funds-are-having-a-heyday%3A-this-etf-captures | nan | nan | Hedge funds that rely on mathematical models and use computing power to invest in trend-following strategies are experiencing a revival after a decade of weak performance.
The current environment of rising rates, inflation, and an aggressive Fed have created prolonged volatility, something that managed futures (this style of fund) thrive in. By following mathematically derived models, these quant-driven hedge funds take long or short positions in sectors such as commodities, currencies, fixed income, and equities.
Relying on trend following can help capture price potentials in both upward and downward moving markets and they perform best when there is momentum in the markets. With the Fed having withdrawn its bond stimulus support, momentum is being inserted into markets that have otherwise been too stable for these types of funds to perform strongly in, and hedge funds utilizing this strategy are performing strongly this year.
Managed futures hedge funds have gained an average of 15.1% in the first four months of 2022 that have seen equities and bonds both plummet on numerous occasions, reported the Financial Times. They were the best performing class of hedge funds while the overall hedge fund industry was down 1.9% as of the end of April.
“Given what’s happened in rates, commodities and currencies, managed futures funds are like pigs in mud,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta Investments.
Capturing Hedge Fund Performance In an ETF
The iMGP DBi Managed Futures Strategy ETF (DBMF) is a unique ETF that works to replicate the performance of hedge fund managed futures strategies within an ETF wrapper. The fund is designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds.
It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “Given what’s happened in rates, commodities and currencies, managed futures funds are like pigs in mud,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta Investments. Capturing Hedge Fund Performance In an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a unique ETF that works to replicate the performance of hedge fund managed futures strategies within an ETF wrapper. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. “Given what’s happened in rates, commodities and currencies, managed futures funds are like pigs in mud,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta Investments. Capturing Hedge Fund Performance In an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a unique ETF that works to replicate the performance of hedge fund managed futures strategies within an ETF wrapper. | Capturing Hedge Fund Performance In an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a unique ETF that works to replicate the performance of hedge fund managed futures strategies within an ETF wrapper. “Given what’s happened in rates, commodities and currencies, managed futures funds are like pigs in mud,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta Investments. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | “Given what’s happened in rates, commodities and currencies, managed futures funds are like pigs in mud,” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta Investments. Capturing Hedge Fund Performance In an ETF The iMGP DBi Managed Futures Strategy ETF (DBMF) is a unique ETF that works to replicate the performance of hedge fund managed futures strategies within an ETF wrapper. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | 5a50d0d4-db2d-4c10-a1a2-292f54164485 |
708828.0 | 2022-05-24 00:00:00 UTC | How to Remove Your Investment Bias in Shifting Markets | DBMF | https://www.nasdaq.com/articles/how-to-remove-your-investment-bias-in-shifting-markets | nan | nan | On the most recent episode of the Behind the Markets podcast on Wharton Business Radio, hosts Jeremy Schwartz, director of research at WisdomTree, and Wharton finance professor Jeremy Siegel were joined by Andrew Beer, founder and managing member of Dynamic Beta Investments. The discussion covered hedge fund strategies and relevance in changing markets and how managed futures can work to remove advisor and investor bias as market regimes change.
Hedge funds dropped off in popularity during the 2010s in an environment of historically low interest rates from the Fed, and most advisors and investors positioned their portfolios in a traditional 60/40 allocation to equities and bonds. 2021 brought a regime change that has only escalated in recent months as the Fed utilizes its full array of tools to actively fight inflation through interest rate increases and balance sheet reductions. Hedge funds are once more gaining in popularity, Beer explained.
“Some of the things that hedge funds do are not that mysterious; some of the things that hedge funds do are relatively mysterious,” Beer said, but their strategy can be puzzled out through analysis. “You can figure out what hedge funds are doing by looking at their recent performance.”
Utilizing a strategy that digs through hedge fund performance and utilizes models and algorithms to determine how hedge funds are investing really only works well within three areas: managed futures, equity long/short, diversified portfolios, and hedge funds on a broader scale according to Beer.
“I think we could be in for a long period of readjustment,” Beer said, speaking to the market imbalances that have been baking in over the last decade, “and regime shifts in particular… are just incredibly interesting times to invest because that’s when all of our behavioral biases come out and that influences pricing across markets and also opportunities.”
Why Managed Futures Should Be in Every Portfolio
Managed futures tend to perform strongly during periods of volatility and drawdown and typically are popular during those times, partially for the diversification opportunities they present (very low to no correlation to equities and bonds) and partially for the income opportunities they present when everything else is struggling (crisis alpha).
This was seen during the Dotcom bear market in the early 2000s when managed futures funds made roughly 40% and in the Financial Crisis of 2008 managed futures made approximately 20%, Beer explained.
“From an asset allocator’s perspective, managed futures should be a meaningful allocation in every single portfolio out there,” Beer said.
Managed futures and the strategy that they utilize can be particularly strong in environments that are fraught with bias. Beer explained that sometimes price movements can be pushed further than they should in response to new information and news because advisors in particular can sometimes be locked into a position that requires an immense amount of information for them to change their perspective.
“These things that are kind of way outside of our range of expectations are very hard for us to think about because we’re so anchored to current numbers and that plays into it a lot,” Beer said. “We’ve seen that even in the trades that we’ve seen in our underlying strategies where the managed futures have made strategies because they’re emotionless quantitative models and have tended to do better than emotional market strategists.”
It's this very seemingly at-odds approach with how advisors would instinctively invest and strategize that can provide valuable diversification opportunities for a portfolio.
Investing in Managed Futures With DBMF
The discussion also covered the “index plus” opportunities provided by the iMGP DBi Managed Futures Strategy ETF (DBMF), an actively managed futures fund designed to capture performance no matter how equity markets are moving.
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investing in Managed Futures With DBMF The discussion also covered the “index plus” opportunities provided by the iMGP DBi Managed Futures Strategy ETF (DBMF), an actively managed futures fund designed to capture performance no matter how equity markets are moving. DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus. Hedge funds dropped off in popularity during the 2010s in an environment of historically low interest rates from the Fed, and most advisors and investors positioned their portfolios in a traditional 60/40 allocation to equities and bonds. | Investing in Managed Futures With DBMF The discussion also covered the “index plus” opportunities provided by the iMGP DBi Managed Futures Strategy ETF (DBMF), an actively managed futures fund designed to capture performance no matter how equity markets are moving. DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus. The discussion covered hedge fund strategies and relevance in changing markets and how managed futures can work to remove advisor and investor bias as market regimes change. | Investing in Managed Futures With DBMF The discussion also covered the “index plus” opportunities provided by the iMGP DBi Managed Futures Strategy ETF (DBMF), an actively managed futures fund designed to capture performance no matter how equity markets are moving. DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus. “You can figure out what hedge funds are doing by looking at their recent performance.” Utilizing a strategy that digs through hedge fund performance and utilizes models and algorithms to determine how hedge funds are investing really only works well within three areas: managed futures, equity long/short, diversified portfolios, and hedge funds on a broader scale according to Beer. | Investing in Managed Futures With DBMF The discussion also covered the “index plus” opportunities provided by the iMGP DBi Managed Futures Strategy ETF (DBMF), an actively managed futures fund designed to capture performance no matter how equity markets are moving. DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus. The discussion covered hedge fund strategies and relevance in changing markets and how managed futures can work to remove advisor and investor bias as market regimes change. | 51e3e32d-a7b0-42d9-b276-336d2e31b132 |
708829.0 | 2022-05-19 00:00:00 UTC | DBMF Offers Managed Futures Hedge Fund Strategies at ETF Prices | DBMF | https://www.nasdaq.com/articles/dbmf-offers-managed-futures-hedge-fund-strategies-at-etf-prices | nan | nan | Managed futures strategies are seeing increased interest from advisors and investors on the VettaFi sites who are looking to pivot their portfolios in a market environment of continued volatility. There are several funds available to investors that offer managed futures strategies, but the iMGP DBi Managed Futures Strategy ETF (DBMF) offers the opportunity to capture hedge fund managed futures strategies within an ETF while reaping alpha potential from the fee reductions, all while performing strongly during volatility.
Managed futures funds have stepped into the spotlight again not only for their ability to diversify a portfolio but also for their potential to generate alpha during volatility, dubbed crisis alpha. DBMF takes it a step further in capturing the performance of hedge fund managed futures strategies within the ETF wrapper.
See also: Why Managed Futures Are the Crisis Alpha Generators
“The past 15 years has really been about trying to address a single question, which is ‘you want the diversification benefits of hedge funds but you want it with daily liquidity in an ETF or mutual fund or similar kind of vehicle, you want it with low fees — how do you actually do that well,’” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the subadvisor of the fund, in a recent webinar.
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
“In the wealth management space, we think this idea of index-plus or benchmark-plus actually should be the default way that people think about investing in a space like managed futures,” Beer said.
In short, this means that the fund utilizes existing hedge fund strategies, pulled from 20 of the largest managed futures hedge funds through the performance data of the SocGen CTA Hedge Fund index, thereby eliminating bias and performance outliers that can happen when following just a single issuer strategy.
“Our view is that… index-like is a very, very good thing in model portfolio-land because… you’re always close to the benchmark, and the benchmark, we have an expression that ‘the benchmark can be your best friend or your worst enemy; that’s particularly true in a space like this where the communication with clients is critically important,” Beer explained.
The "Purest Form of Alpha"
Dynamic Beta investments believes that fee reduction “is the purest form of alpha” when it comes to hedge funds. Much of the alpha generated by hedge fund strategies is eaten up in fees, meaning that a large portion of the profits is never realized by investors. Through the mechanisms of the ETF vehicle, those fees can be drastically reduced and the profits preserved.
This is captured through the way that the performance of the hedge funds is tracked, which means that DBMF seeks to capture that hedge fund performance before fees and combine that with the reduced fees of the ETF structure, thereby providing “the purest form of alpha”.
The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds.
It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF takes it a step further in capturing the performance of hedge fund managed futures strategies within the ETF wrapper. There are several funds available to investors that offer managed futures strategies, but the iMGP DBi Managed Futures Strategy ETF (DBMF) offers the opportunity to capture hedge fund managed futures strategies within an ETF while reaping alpha potential from the fee reductions, all while performing strongly during volatility. See also: Why Managed Futures Are the Crisis Alpha Generators “The past 15 years has really been about trying to address a single question, which is ‘you want the diversification benefits of hedge funds but you want it with daily liquidity in an ETF or mutual fund or similar kind of vehicle, you want it with low fees — how do you actually do that well,’” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the subadvisor of the fund, in a recent webinar. | There are several funds available to investors that offer managed futures strategies, but the iMGP DBi Managed Futures Strategy ETF (DBMF) offers the opportunity to capture hedge fund managed futures strategies within an ETF while reaping alpha potential from the fee reductions, all while performing strongly during volatility. The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF takes it a step further in capturing the performance of hedge fund managed futures strategies within the ETF wrapper. | There are several funds available to investors that offer managed futures strategies, but the iMGP DBi Managed Futures Strategy ETF (DBMF) offers the opportunity to capture hedge fund managed futures strategies within an ETF while reaping alpha potential from the fee reductions, all while performing strongly during volatility. See also: Why Managed Futures Are the Crisis Alpha Generators “The past 15 years has really been about trying to address a single question, which is ‘you want the diversification benefits of hedge funds but you want it with daily liquidity in an ETF or mutual fund or similar kind of vehicle, you want it with low fees — how do you actually do that well,’” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the subadvisor of the fund, in a recent webinar. DBMF takes it a step further in capturing the performance of hedge fund managed futures strategies within the ETF wrapper. | There are several funds available to investors that offer managed futures strategies, but the iMGP DBi Managed Futures Strategy ETF (DBMF) offers the opportunity to capture hedge fund managed futures strategies within an ETF while reaping alpha potential from the fee reductions, all while performing strongly during volatility. DBMF takes it a step further in capturing the performance of hedge fund managed futures strategies within the ETF wrapper. See also: Why Managed Futures Are the Crisis Alpha Generators “The past 15 years has really been about trying to address a single question, which is ‘you want the diversification benefits of hedge funds but you want it with daily liquidity in an ETF or mutual fund or similar kind of vehicle, you want it with low fees — how do you actually do that well,’” said Andrew Beer, co-portfolio manager of DBMF and managing member at Dynamic Beta investments, the subadvisor of the fund, in a recent webinar. | 4cb0a27d-3976-43e1-9b9a-0a49e9a5a538 |
708830.0 | 2022-05-17 00:00:00 UTC | Why Managed Futures Are the Crisis Alpha Generators | DBMF | https://www.nasdaq.com/articles/why-managed-futures-are-the-crisis-alpha-generators | nan | nan | Volatility has been the market keyword for 2022 so far, with stocks rising and falling on each new headline; whether it’s inflation, Federal Reserve meetings, or earnings, markets remain choppy. The most recent Fed meeting this month saw many advisors and investors eyeing the potential for recession in the long-term, and markets plummeted as investors digested the reality of an aggressive Fed gearing up to fight inflation.
Crisis alpha is still a newer concept in the financial world, created by Kathryn Kaminski, Ph.D., CAIA, current chief research strategist at AlphaSimplex Group, shortly after the financial crisis of 2008–2009. Crisis alpha strategies are investment opportunities that are able to find the pockets of profit during times of severe market stress and dislocations, including within fixed income, currencies, equities, commodities, and more.
These types of strategies are unique in that they are “exploiting the persistent trends that occur across markets during times of crisis,” wrote Kaminski in a paper, "In Search of Crisis Alpha: A Short Guide to Investing in Managed Futures."
What is important to note is the focus on trends that happen specifically in crisis markets, trends that managed futures are particularly well-equipped to capture and profit from. Most investors are typically long on equities, so when equity markets go down, investors will exit positions in some asset classes while entering positions in others, creating persistent trends as they seek liquidity. This exiting can either be done on a voluntary basis or involuntarily as risk limits and leverage mechanisms force investors out of positions and exposures; the greater the drawdown, the higher the number of positions exited.
What Managed Futures Are and Why They Work in Volatility
Managed futures operate, as their name implies, in the futures market, where they take long or short positions on a variety of asset classes, both through futures investing and through options that allow for targeted positioning specific to the current market environment and trends.
The futures market is one of the most liquid markets with high credit solvency, even in times of market crisis, and managed futures have extremely low correlations to equities and bonds as a whole. As investors reduce their exposures to equities during market volatility and drawdowns, it introduces illiquidity to the equity market; it's also easy for investors to fall into so-called credit traps during market downturns and volatility as more companies are likely to experience credit solvency issues in times of economic hardship.
Image source: Dynamic Beta Investments
The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span across domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image source: Dynamic Beta Investments The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | Image source: Dynamic Beta Investments The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | Image source: Dynamic Beta Investments The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | Image source: Dynamic Beta Investments The iMGP DBi Managed Futures Strategy ETF (DBMF) is a managed futures fund designed to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. | f32d1e8d-b337-4bae-859b-3cb2151319e9 |
708831.0 | 2022-05-12 00:00:00 UTC | As Markets Continue to Plummet, Consider Managed Futures | DBMF | https://www.nasdaq.com/articles/as-markets-continue-to-plummet-consider-managed-futures | nan | nan | Everywhere you look, markets are bleeding in a sea of red, with advisors and investors shifting money away from the most painful pressure points and sectors while seeking any havens they can. Managed futures are an alternative to consider, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF), which is uncorrelated to equities and bonds. The fund's construction allows it to attempt to capture performance regardless of which way the market is moving.
To say that the current environment is a challenging one would be one of the most blatant understatements; unprecedented is a stronger and more accurate word to capture the confluence of factors that have led U.S. markets to where they are today.
“Three major macro regime shifts – inflation, monetary tightening and now Cold War 2.0 – emerged over the past year and kicked into high gear last quarter. None were ‘priced in’ and all appear to be in the early stages. In this new world, market participants must try to simultaneously anticipate the actions of policy makers, market participants, producers and consumers – then all the second and third order effects,” writes iM Global Partner in a commentary on the fund’s first quarter performance in 2022.
DBMF and managed futures can be a potential way to ride out the volatility, as they seek to take long and short positions in a variety of sectors that are expected to either underperform or outperform. As an actively managed fund, it responds in real time to market movements and shifting sentiments through derivatives across bonds, equities, commodities, currencies, and more.
“Factor rotations and cross-asset correlations have been exceptionally volatile, as each new shift in the narrative is extrapolated out to the investment horizon. Extreme volatility, widespread leverage and disappearing market liquidity have materially raised the odds of another Lehman moment,” iMGP explains.
Investing in Managed Futures With DBMF
As advisors and investors either move to cash or seek alternatives, they can consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a fund designed to attempt to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span across domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity-trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determining a portfolio of liquid contracts that would mimic the hedge funds’ performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8%–10% annually.
DBMF has a management fee of 0.85% and an additional 10 bps for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBMF and managed futures can be a potential way to ride out the volatility, as they seek to take long and short positions in a variety of sectors that are expected to either underperform or outperform. Managed futures are an alternative to consider, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF), which is uncorrelated to equities and bonds. Investing in Managed Futures With DBMF As advisors and investors either move to cash or seek alternatives, they can consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a fund designed to attempt to capture performance no matter how equity markets are moving. | Managed futures are an alternative to consider, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF), which is uncorrelated to equities and bonds. Investing in Managed Futures With DBMF As advisors and investors either move to cash or seek alternatives, they can consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a fund designed to attempt to capture performance no matter how equity markets are moving. DBMF and managed futures can be a potential way to ride out the volatility, as they seek to take long and short positions in a variety of sectors that are expected to either underperform or outperform. | Managed futures are an alternative to consider, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF), which is uncorrelated to equities and bonds. Investing in Managed Futures With DBMF As advisors and investors either move to cash or seek alternatives, they can consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a fund designed to attempt to capture performance no matter how equity markets are moving. DBMF and managed futures can be a potential way to ride out the volatility, as they seek to take long and short positions in a variety of sectors that are expected to either underperform or outperform. | Managed futures are an alternative to consider, particularly the iMGP DBi Managed Futures Strategy ETF (DBMF), which is uncorrelated to equities and bonds. Investing in Managed Futures With DBMF As advisors and investors either move to cash or seek alternatives, they can consider the iMGP DBi Managed Futures Strategy ETF (DBMF), a fund designed to attempt to capture performance no matter how equity markets are moving. DBMF and managed futures can be a potential way to ride out the volatility, as they seek to take long and short positions in a variety of sectors that are expected to either underperform or outperform. | 015e2246-bb64-4e24-ad10-64841164404a |
708832.0 | 2022-05-11 00:00:00 UTC | Defensive ETFs for Investors Fearing Further Market Crash | DBMF | https://www.nasdaq.com/articles/defensive-etfs-for-investors-fearing-further-market-crash | nan | nan | Wall Street was off to the worst start to a year since 1939. And theglobal marketselloff will continue, according to Bank of America Corp., as quoted on Bloomberg. After an awful first-quarter, the month of May is also proving rough for the markets, mainly due to the Fed’s biggest interest rate hike in 22 years.
Investors grew concerned about the impact of the higher rates on the economy and business as well as the chances of stagflation. Stagflation arises when high inflation hits the economy and the age-old policy treatment of inflationary pressure – hiking interest rates – goes against economic growth. In short, higher inflation combined with falling growth results in stagflation.
Though the Fed hinted at very less chances of a 75-bp rate hike, it means there could be several 50 basis point increases over the next few months, said Brunello Rosa, who is CEO and head of research at Rosa & Roubini, a consultancy he co-founded with well-known market bear Nouriel Roubini, as quoted on CNBC.
The market is abuzz with rising recessionary risks. Goldman Sachs economists kept the probability of a U.S. recession within the next 24 months low at 38% in April, as quoted on fortune. This was a less bearish view than many Wall Street analysts.
But last week, Goldman analysts led by Jan Hatzius admitted that risks to the U.S economy have grown over the past month. However, a strong U.S. consumer may help the Fed secure a “soft landing” in 2022 as interest rates rise, Goldman said, as quoted on that Fortune article.
Against this backdrop, investors should be prepared for a further crash in the market following recessionary talks. Long/Sort ETFs could go a long way in restoring the value of one’s portfolio against this edgy backdrop.
ETFs in Focus
IMGP DBi Managed Futures Strategy ETF DBMF – Up 24.4% against 13.5% decline in the S&P 500
The fund employs long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities. The fund yields 8.27% annually and charges 85 bps in fees.
Leatherback LongShort Alternative Yield ETF LBAY – Up 15.1% YTD
The Leatherback Long/Short Alternative Yield ETF is an actively managed fund that seeks income generation and capital appreciation through shareholder yielding equities and income-producing securities.
It takes long positions in securities it believes will provide sustainable shareholder yield and short positions in securities it believes will decline in price. Leatherback employs an option-writing overlay strategy to generate additional income. The annual expense ratio is 1.43%.
First Trust Managed Futures Strategy ETF FMF – Up 14.1% YTD
The First Trust Managed Futures Strategy Fund seeks to provide investors with positive returns. The actively managed exchange-traded fund seeks to achieve positive returns that are not directly correlated to broad market equity or fixed income returns by investing, under normal market conditions, in a portfolio of exchange-listed futures. The fund charges 96 bps in fees.
KFA Mount Lucas Index Strategy ETF KMLM – Up 36.5% YTD
KMLM is benchmarked to the KFA MLM Index, which consists of a portfolio of 22 liquid futures contracts traded on U.S. and foreign exchanges. The index includes futures contracts on 11 commodities, six currencies, and five global bond markets. These three baskets are weighted by their relative historical volatility, and within each basket, the constituent markets are equal dollar-weighted. It charges 90 bps in fees.
LHA Market State Alpha Seeker ETF MSVX– Up 4.60% YTD
The actively-managed LHA Market State Alpha Seeker ETF seeks to provide positive returns, across multiple market cycles, that are generally not correlated to the U.S. equity or fixed income markets. The fund employs a rules-based risk management approach to make tactical long/short allocations to equity futures & options, VIX futures & options, and ETFs utilizing a rules-based risk management approach. (VIX is the Cboe Volatility Index.) Its expense ratio is 1.50%.
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First Trust Managed Futures Strategy ETF (FMF): ETF Research Reports
iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports
LHA Market State Alpha Seeker ETF (MSVX): ETF Research Reports
Leatherback LongShort Alternative Yield ETF (LBAY): ETF Research Reports
KFA Mount Lucas Index Strategy ETF (KMLM): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ETFs in Focus IMGP DBi Managed Futures Strategy ETF DBMF – Up 24.4% against 13.5% decline in the S&P 500 The fund employs long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities. iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports After an awful first-quarter, the month of May is also proving rough for the markets, mainly due to the Fed’s biggest interest rate hike in 22 years. | ETFs in Focus IMGP DBi Managed Futures Strategy ETF DBMF – Up 24.4% against 13.5% decline in the S&P 500 The fund employs long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities. iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports Leatherback LongShort Alternative Yield ETF LBAY – Up 15.1% YTD The Leatherback Long/Short Alternative Yield ETF is an actively managed fund that seeks income generation and capital appreciation through shareholder yielding equities and income-producing securities. | ETFs in Focus IMGP DBi Managed Futures Strategy ETF DBMF – Up 24.4% against 13.5% decline in the S&P 500 The fund employs long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities. iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports Leatherback LongShort Alternative Yield ETF LBAY – Up 15.1% YTD The Leatherback Long/Short Alternative Yield ETF is an actively managed fund that seeks income generation and capital appreciation through shareholder yielding equities and income-producing securities. | ETFs in Focus IMGP DBi Managed Futures Strategy ETF DBMF – Up 24.4% against 13.5% decline in the S&P 500 The fund employs long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income, currencies and commodities. iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports First Trust Managed Futures Strategy ETF FMF – Up 14.1% YTD The First Trust Managed Futures Strategy Fund seeks to provide investors with positive returns. | 05b4e2d9-b16d-49c4-bf1e-44f54f94db2f |
708833.0 | 2022-05-10 00:00:00 UTC | Don’t Sleep on Managed Futures: DBMF Hitting Milestones | DBMF | https://www.nasdaq.com/articles/dont-sleep-on-managed-futures%3A-dbmf-hitting-milestones | nan | nan | The iMGP DBi Managed Futures Strategy ETF (DBMF) celebrates its three-year anniversary this week and to celebrate the occasion, issuer iMGP alongside partner Dynamic Beta Investments highlighted three major milestones that the fund has reached since its inception in a press release.
The fund is designed to attempt to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
“DBMF was our first ETF launched at iMGPFM in the US and is an integrated solution for our $2.5 billion US ETF/fund platform. DBMF directly addresses what our US advisors and clients wanted in an actively managed, low-cost ETF strategy: an ETF that can protect portfolios during periods of inflation and market volatility while adding value to allocations long term,” said Jeff Seeley, Deputy CEO of iMGP and CEO of iMGPFM said in a press release.
Since its launch, the fund has returned 15.45% NAV as well as a 15.56% per annum (market price), has an annualized alpha of 15.23%, a beta of -0.02, and a correlation to the S&P 500 of -.03. At a time when investors are seeking non-correlated options for their portfolios as equities continue to fall, DBMF offers an attractive solution; year-to-date, DBMF has a 23.97% NAV and 22.58% (market price).
Of note, the fund has outperformed the SocGen CTA Hedge Fund index, a major benchmark for the most popular managed futures hedge funds at a rate of 5.05% a year at NAV (15.45% v 10.40%).
“Managed futures, as a strategy, has the potential for great diversification bang-for-the-buck, especially in an inflationary environment. In 2015, we set out to solve the twin hurdles of investing in the space: high fees and expenses and single manager risk. DBMF is the culmination of that effort,” said Andrew Beer, co-portfolio manager.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
As of May 5, the fund has $150 million in AUM, reflecting a $90 million increase since 12/31/21 as investors and advisors seek alternative sources of income as well as to diversify their portfolios. The fund is one that invests in around 15 highly liquid futures contracts and rebalances on a weekly basis.
“We believe that DBMF can be transformative in the years to come for both model portfolios, institutional clients, and the ETF space: a one-stop solution that can enable all clients in the US in traditional portfolios to access institutional-quality managed futures in an actively managed, low-cost ETF,” said Seeley.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iMGP DBi Managed Futures Strategy ETF (DBMF) celebrates its three-year anniversary this week and to celebrate the occasion, issuer iMGP alongside partner Dynamic Beta Investments highlighted three major milestones that the fund has reached since its inception in a press release. DBMF directly addresses what our US advisors and clients wanted in an actively managed, low-cost ETF strategy: an ETF that can protect portfolios during periods of inflation and market volatility while adding value to allocations long term,” said Jeff Seeley, Deputy CEO of iMGP and CEO of iMGPFM said in a press release. “DBMF was our first ETF launched at iMGPFM in the US and is an integrated solution for our $2.5 billion US ETF/fund platform. | The iMGP DBi Managed Futures Strategy ETF (DBMF) celebrates its three-year anniversary this week and to celebrate the occasion, issuer iMGP alongside partner Dynamic Beta Investments highlighted three major milestones that the fund has reached since its inception in a press release. DBMF directly addresses what our US advisors and clients wanted in an actively managed, low-cost ETF strategy: an ETF that can protect portfolios during periods of inflation and market volatility while adding value to allocations long term,” said Jeff Seeley, Deputy CEO of iMGP and CEO of iMGPFM said in a press release. “We believe that DBMF can be transformative in the years to come for both model portfolios, institutional clients, and the ETF space: a one-stop solution that can enable all clients in the US in traditional portfolios to access institutional-quality managed futures in an actively managed, low-cost ETF,” said Seeley. | The iMGP DBi Managed Futures Strategy ETF (DBMF) celebrates its three-year anniversary this week and to celebrate the occasion, issuer iMGP alongside partner Dynamic Beta Investments highlighted three major milestones that the fund has reached since its inception in a press release. “We believe that DBMF can be transformative in the years to come for both model portfolios, institutional clients, and the ETF space: a one-stop solution that can enable all clients in the US in traditional portfolios to access institutional-quality managed futures in an actively managed, low-cost ETF,” said Seeley. “DBMF was our first ETF launched at iMGPFM in the US and is an integrated solution for our $2.5 billion US ETF/fund platform. | At a time when investors are seeking non-correlated options for their portfolios as equities continue to fall, DBMF offers an attractive solution; year-to-date, DBMF has a 23.97% NAV and 22.58% (market price). The iMGP DBi Managed Futures Strategy ETF (DBMF) celebrates its three-year anniversary this week and to celebrate the occasion, issuer iMGP alongside partner Dynamic Beta Investments highlighted three major milestones that the fund has reached since its inception in a press release. “DBMF was our first ETF launched at iMGPFM in the US and is an integrated solution for our $2.5 billion US ETF/fund platform. | 4f6e31f5-aaf1-4a31-8277-fe7fb3c98e69 |
708834.0 | 2022-05-05 00:00:00 UTC | Worried About Volatility? Managed Futures has an Attractive Solution | DBMF | https://www.nasdaq.com/articles/worried-about-volatility-managed-futures-has-an-attractive-solution | nan | nan | The reality of Fed tightening and the concerns around recession, and the Fed’s willingness to allow for it to fight inflation saw markets bleed on Thursday, giving up all the gains they made briefly on Wednesday in the biggest about-face since the onset of the pandemic, reports the Wall Street Journal.
Tech stocks were some of the hardest hit; the Nasdaq Composite dropped 5%, the S&P 500 was down 3.6%, and the Dow declined 3.1% (1,063 points). On the flip side, bond prices fell as yields rose, with the 10-year Treasury note yield crossing back into 3% territory to 3.066%.
“We struggle to see who is going to be a massive buyer of equities in the next couple weeks,” Viraj Patel, global macro strategist for Vanda Research, told WSJ. “It’s a waiting game for that catalyst…You need more conviction from the data, either to show that inflation has topped out or the economy is slowing and that the Fed won’t need to be as aggressive.”
Non-Correlated Performance Opportunities with DBMF
As advisors and investors either move to cash or seek alternatives, one option to consider is managed futures. The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. The fund seeks long-term capital appreciation by investing in some of the most liquid U.S.-based futures contracts in a strategy utilized by hedge funds.
DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. It is an actively managed fund that uses long and short positions within derivatives, mostly futures contracts, and forward contracts. These contracts span across domestic equities, fixed income, currencies, and commodities (via its Cayman Islands subsidiary).
The position that the fund takes within domestic managed futures and forward contracts is determined by the Dynamic Beta Engine. This proprietary, quantitative model attempts to ascertain how the largest commodity trading advisor hedge funds have their allocations. It does so by analyzing the trailing 60-day performance of CTA hedge funds and then determines a portfolio of liquid contracts that would mimic the hedge funds' performance (not the positions).
DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. Under normal market conditions, the fund seeks to maintain volatility between 8-10% annually.
According to the website, DBMF has a 24.01% return as of May 4, 2022, with a management fee of 0.85% and an additional ten bips for other expenses listed in the prospectus.
For more news, information, and strategy, visit the Managed Futures Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “It’s a waiting game for that catalyst…You need more conviction from the data, either to show that inflation has topped out or the economy is slowing and that the Fed won’t need to be as aggressive.” Non-Correlated Performance Opportunities with DBMF As advisors and investors either move to cash or seek alternatives, one option to consider is managed futures. The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | DBMF takes long positions in derivatives with exposures to asset classes, sectors, or markets that are anticipated to grow in value and takes short positions in derivatives with exposures expected to fall in value. “It’s a waiting game for that catalyst…You need more conviction from the data, either to show that inflation has topped out or the economy is slowing and that the Fed won’t need to be as aggressive.” Non-Correlated Performance Opportunities with DBMF As advisors and investors either move to cash or seek alternatives, one option to consider is managed futures. The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. | “It’s a waiting game for that catalyst…You need more conviction from the data, either to show that inflation has topped out or the economy is slowing and that the Fed won’t need to be as aggressive.” Non-Correlated Performance Opportunities with DBMF As advisors and investors either move to cash or seek alternatives, one option to consider is managed futures. The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | “It’s a waiting game for that catalyst…You need more conviction from the data, either to show that inflation has topped out or the economy is slowing and that the Fed won’t need to be as aggressive.” Non-Correlated Performance Opportunities with DBMF As advisors and investors either move to cash or seek alternatives, one option to consider is managed futures. The iMGP DBi Managed Futures Strategy ETF (DBMF) is designed to attempt to capture performance no matter how equity markets are moving. DBMF allows for the diversification of portfolios across asset classes that are uncorrelated to traditional equities or bonds. | d55ed5d1-9b00-469f-816d-dd8b029c69bd |
708835.0 | 2020-05-01 00:00:00 UTC | GOVT, DBMF: Big ETF Outflows | DBMF | https://www.nasdaq.com/articles/govt-dbmf%3A-big-etf-outflows-2020-05-01 | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares U.S. Treasury Bond ETF, where 23,600,000 units were destroyed, or a 4.3% decrease week over week.
And on a percentage change basis, the ETF with the biggest outflow was the DBMF ETF, which lost 375,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior.
VIDEO: GOVT, DBMF: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And on a percentage change basis, the ETF with the biggest outflow was the DBMF ETF, which lost 375,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior. VIDEO: GOVT, DBMF: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares U.S. Treasury Bond ETF, where 23,600,000 units were destroyed, or a 4.3% decrease week over week. | And on a percentage change basis, the ETF with the biggest outflow was the DBMF ETF, which lost 375,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior. VIDEO: GOVT, DBMF: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares U.S. Treasury Bond ETF, where 23,600,000 units were destroyed, or a 4.3% decrease week over week. | And on a percentage change basis, the ETF with the biggest outflow was the DBMF ETF, which lost 375,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior. VIDEO: GOVT, DBMF: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares U.S. Treasury Bond ETF, where 23,600,000 units were destroyed, or a 4.3% decrease week over week. | And on a percentage change basis, the ETF with the biggest outflow was the DBMF ETF, which lost 375,000 of its units, representing a 37.5% decline in outstanding units compared to the week prior. VIDEO: GOVT, DBMF: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares U.S. Treasury Bond ETF, where 23,600,000 units were destroyed, or a 4.3% decrease week over week. | 1dd335d2-b49c-42e5-bd5e-24a5d4f7eb6c |
708836.0 | 2023-12-15 00:00:00 UTC | The Week Ahead: The Bank of Japan, Inflation, and China in the Spotlight | DBO | https://www.nasdaq.com/articles/the-week-ahead%3A-the-bank-of-japan-inflation-and-china-in-the-spotlight | nan | nan | FXEmpire.com -
Highlights
The Bank of Japan and forward guidance on negative rates in focus on Tuesday.
UK, Eurozone, and US inflation to test sentiment toward central bank monetary policy.
China stimulus chatter and the PBoC are also focal points in the week ending December 22.
The US Dollar
On Tuesday, the US housing sector will be in the spotlight. The housing sector remains a litmus test for the US economy. Deteriorating housing sector conditions could impact consumer confidence and consumption. US private consumption contributes over 65% to the US economy. Weak housing sector figures would support the more dovish Fed rate path.
Consumer confidence figures will need consideration on Wednesday. A pickup in consumer confidence would support bets on a soft landing. An upward trend in consumer confidence signals a pickup in consumption.
On Thursday, Q3 GDP, jobless claims, and Philly Fed Manufacturing Index numbers will garner investor interest. Steady jobless claims and improving manufacturing sector activity would support buyer demand for the US dollar.
However, Personal spending, Core PCE Price Index, and personal income figures warrant consideration on Friday. A pickup in inflationary pressure and uptrends in personal income/spending could raise doubts about the Fed interest rate projections.
The EUR
On Monday, the EUR/USD will be in the hands of German business sentiment. An improving business sentiment environment would drive buyer demand for the EUR/USD. Rising trends in business sentiment could signal an improving macroeconomic environment, supporting hiring and private consumption.
However, Eurozone inflation numbers for November could have more impact. Last Thursday, the ECB poured cold water on ECB rate cut discussions. Softer-than-expected numbers could support the bets on a Q1 2024 rate cut.
On Wednesday, the German economy will be in the spotlight, with producer prices and consumer sentiment in focus. Producer prices would give investors a view of the demand environment and an outlook for consumer price inflation. Weaker demand would force producers to lower costs to win new business. Lower costs would dampen demand-driven inflationary pressures.
However, German consumer confidence will also move the dial. Improving consumer confidence could signal a pickup in consumption, fueling demand-driven inflationary pressures. The net effect could be a higher-for-longer ECB rate path to curb spending and tame inflation.
Beyond theeconomic calendar investors must monitor ECB commentary. ECB Chief Economist Philip Lane (Mon/Wed/Thurs) is on the calendar to speak. ECB Executive Board members Isabel Schnabel (Mon), Andrea Enria (Tues), and Frank Elderson (Tues) will also deliver speeches. Deviation from the higher-for-longer guidance at the ECB press conference would impact the EUR/USD.
The Pound
On Wednesday, consumer price inflation will put the Pound in focus. Sticky inflation would support the Bank of England’s dismissal of interest rate cut discussions. Hotter-than-expected figures could give the BoE reins to the hawks.
However, economic indicators on Friday will also move the dial. Q3 GDP and retail sales figures will garner investor interest. While GDP numbers need consideration, retail sales figures may have more impact. A pickup in retail sales would fuel demand-driven inflation, forcing the BoE to keep rates higher for longer.
An elevated interest rate environment could impact borrowing costs and reduce disposable income. The net effect could be a pullback in consumer spending, dampening demand-driven inflationary pressures.
Away from the numbers, investors must consider Bank of England commentary. MPC members Ben Broadbent (Mon) and Sarah Breeden (Tues) are on the calendar to speak.
The Loonie
On Tuesday, inflation figures for November will influence the buyer appetite for the Loonie. Softer inflationary pressures would drive buyer demand for the USD/CAD.
However, October retail sales figures and GDP numbers will also move the dial. Retail sales figures are out on Thursday, with the GDP report on Friday.
Other stats include house prices and RMPI numbers. However, these will likely play second fiddle to the inflation, retail sales, and GDP figures.
From elsewhere, crude oil prices will also influence trends for the Loonie.
The Australian Dollar
The RBA meeting minutes on Tuesday will influence demand for the Aussie dollar. After the dovish rate statement, the meeting minutes could support bets on the RBA ending its rate hike cycle.
Beyond theeconomic calendar stimulus chatter from Beijing and iron ore prices need consideration.
The Kiwi Dollar
The Kiwi dollar will be in the hands of consumer sentiment. On Monday, the Westpac Consumer Sentiment Index for Q4 will draw investor interest. A pickup in consumer confidence would support the buyer appetite for the Kiwi dollar.
Private consumption contributes over 50% to the New Zealand economy. An improving consumer confidence environment would support consumer spending and the economy.
The Japanese Yen
On Tuesday, the Bank of Japan will put the Japanese Yen in the spotlight. Economists expect the BoJ to leave interest rates unchanged at -0.10%. Barring a surprise BoJ policy move, the focus will be on the Monetary Policy Statement and the press conference.
After mixed signals about the timing of an exit from negative rates, more assertive guidance will influence the buyer appetite for the USD/JPY.
However, economic indicators also need consideration later in the week. Trade data (Wed) and national inflation (Fri) could influence sentiment toward BoJ monetary policy. Much will depend on the Bank’s focal points to exit negative rates.
Nonetheless, weaker trade terms and softer inflation numbers could allow the BoJ to delay any move. In recent speeches, the BoJ has highlighted concerns about the macroeconomic environment and demand.
Out of China
On Wednesday, the PBoC will be in the spotlight. Recent economic indicators from China painted a rosier picture of the Chinese economy, contrasting with survey-based numbers. However, the markets expect further stimulus to shore up the economy.
Economists expect the PBoC to leave 1-year and 5-year loan prime rates (LPR) unchanged at 3.45% and 4.2%, respectively. A surprise PBoC cut in LPRs could drive demand for commodity currencies and riskier assets.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Thursday, Q3 GDP, jobless claims, and Philly Fed Manufacturing Index numbers will garner investor interest. Recent economic indicators from China painted a rosier picture of the Chinese economy, contrasting with survey-based numbers. This article was originally posted on FX Empire More From FXEMPIRE: DAX Index: German Business Sentiment and Outlook: What to Expect Next XRP News: Democrats vs. Republicans, the US Courts, and the SEC vs. Ripple Bitcoin Price Analysis: Will BTC React to this $240 Million Market Signal? | On Thursday, Q3 GDP, jobless claims, and Philly Fed Manufacturing Index numbers will garner investor interest. Producer prices would give investors a view of the demand environment and an outlook for consumer price inflation. Improving consumer confidence could signal a pickup in consumption, fueling demand-driven inflationary pressures. | On Wednesday, the German economy will be in the spotlight, with producer prices and consumer sentiment in focus. Producer prices would give investors a view of the demand environment and an outlook for consumer price inflation. An improving consumer confidence environment would support consumer spending and the economy. | Consumer confidence figures will need consideration on Wednesday. Producer prices would give investors a view of the demand environment and an outlook for consumer price inflation. An improving consumer confidence environment would support consumer spending and the economy. | 67780409-6917-4158-a141-0a9b6311fb14 |
708837.0 | 2023-12-06 00:00:00 UTC | Crude Inventories Declined By 4.6 Million Barrels | DBO | https://www.nasdaq.com/articles/crude-inventories-declined-by-4.6-million-barrels | nan | nan | FXEmpire.com -
Key Insights
Crude inventories missed analyst estimates.
Strategic Petroleum Reserve increased from 351.6 million barrels to 351.9 million barrels.
Domestic oil production decreased from 13.2 million bpd to 13.1 million bpd.
On December 6, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 4.6 million barrels from the previous week, compared to analyst consensus of -1.35 million barrels.
Total motor gasoline inventories grew by 5.4 million barrels, while distillate fuel inventories increased by 1.3 million barrels. Crude oil imports averaged 7.5 million bpd, rising by as much as 1.7 million bpd from the previous week.
Strategic Petroleum Reserve increased from 351.6 million barrels to 351.9 million barrels as U.S. continued to buy oil for reserves.
Interestingly, domestic oil production declined from 13.2 million bpd to 13.1 million bpd as producers reacted to the strong pullback in the oil markets.
WTI oil settled below the $70.50 level after the release of the EIA report. Oil prices remain under pressure as traders stay worried about demand. Gasoline inventories’ growth may serve as an additional negative catalyst for WTI oil. At the same time, the pullback in domestic oil production may provide some support to oil markets.
Brent oil made an attempt to settle below the $75.50 level. The market sentiment remains bearish as traders do not believe that OPEC+ production cuts would provide sufficient support to the market.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Oil prices remain under pressure as traders stay worried about demand. Gasoline inventories’ growth may serve as an additional negative catalyst for WTI oil. This article was originally posted on FX Empire More From FXEMPIRE: USD/JPY Price Forecast – US Dollar Crumbles US Dollar Index News: DXY Falls as Yen Surge Shakes Up Global Currency Markets Nasdaq Index, Dow Jones, S&P 500 News: Mixed Sentiment Ahead of Key Jobs Report The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Strategic Petroleum Reserve increased from 351.6 million barrels to 351.9 million barrels. Strategic Petroleum Reserve increased from 351.6 million barrels to 351.9 million barrels as U.S. continued to buy oil for reserves. Interestingly, domestic oil production declined from 13.2 million bpd to 13.1 million bpd as producers reacted to the strong pullback in the oil markets. | The report indicated that crude inventories declined by 4.6 million barrels from the previous week, compared to analyst consensus of -1.35 million barrels. Strategic Petroleum Reserve increased from 351.6 million barrels to 351.9 million barrels as U.S. continued to buy oil for reserves. Interestingly, domestic oil production declined from 13.2 million bpd to 13.1 million bpd as producers reacted to the strong pullback in the oil markets. | The report indicated that crude inventories declined by 4.6 million barrels from the previous week, compared to analyst consensus of -1.35 million barrels. Interestingly, domestic oil production declined from 13.2 million bpd to 13.1 million bpd as producers reacted to the strong pullback in the oil markets. WTI oil settled below the $70.50 level after the release of the EIA report. | 2edf2ca4-8656-4bf8-a222-10dfc7068050 |
708838.0 | 2023-11-29 00:00:00 UTC | Crude Inventories Rise By 1.6 Million Barrels, Exceeding Analyst Estimates | DBO | https://www.nasdaq.com/articles/crude-inventories-rise-by-1.6-million-barrels-exceeding-analyst-estimates | nan | nan | FXEmpire.com -
Key Insights
Crude inventories grew by 1.6 million barrels from the previous week.
Domestic oil production remained unchanged at 13.2 million bpd.
WTI oil has started to move away from session lows after the release of the EIA report.
On November 29, EIA released Weekly Petroleum Status Report. The report indicated that crude inventories increased by 1.6 million barrels from the previous week. Analysts expected that crude inventories would decline by 0.9 million barrels.
Total motor gasoline inventories grew by 1.8 million barrels, while distillate fuel inventories increased by 5.2 million barrels. Crude oil imports averaged 5.8 million bpd, declining by almost 0.7 million bpd from the previous week.
Domestic oil production remained unchanged at 13.2 million bpd. Current oil prices do not provide sufficient incentives to increase production. At the same time, it should be noted that domestic oil production remains at multi-month highs.
Interestingly, Strategic Petroleum Reserve increased from 351.3 million barrels to 351.6 million barrels. U.S. has started to buy oil for reserves after the strong pullback from September highs.
WTI oil is trying to move away from session lows after the release of the EIA report. The minor purchases for the Strategic Petroleum Reserve may serve as a bullish catalyst for oil markets.
Brent oil settled in the $81.00 – $81.50 range. The EIA report is an important catalyst for the oil markets, but traders are also waiting for the news from OPEC+. Meanwhile, oil supply disruption which was caused by the storm in the Black Sea continues to provide some support to oil prices.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories grew by 1.6 million barrels from the previous week. The minor purchases for the Strategic Petroleum Reserve may serve as a bullish catalyst for oil markets. This article was originally posted on FX Empire More From FXEMPIRE: Oil Prices Forecast: Traders Bracing for OPEC+ Crucial Production Decision Gold Prices Forecast: Testing Seven-Month High Ahead of Key US Inflation Report EUR/USD Forecast: Analyzing the Path Amidst Eurozone and US Inflation Data The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Crude oil imports averaged 5.8 million bpd, declining by almost 0.7 million bpd from the previous week. Interestingly, Strategic Petroleum Reserve increased from 351.3 million barrels to 351.6 million barrels. This article was originally posted on FX Empire More From FXEMPIRE: Oil Prices Forecast: Traders Bracing for OPEC+ Crucial Production Decision Gold Prices Forecast: Testing Seven-Month High Ahead of Key US Inflation Report EUR/USD Forecast: Analyzing the Path Amidst Eurozone and US Inflation Data The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Total motor gasoline inventories grew by 1.8 million barrels, while distillate fuel inventories increased by 5.2 million barrels. Crude oil imports averaged 5.8 million bpd, declining by almost 0.7 million bpd from the previous week. This article was originally posted on FX Empire More From FXEMPIRE: Oil Prices Forecast: Traders Bracing for OPEC+ Crucial Production Decision Gold Prices Forecast: Testing Seven-Month High Ahead of Key US Inflation Report EUR/USD Forecast: Analyzing the Path Amidst Eurozone and US Inflation Data The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WTI oil has started to move away from session lows after the release of the EIA report. The report indicated that crude inventories increased by 1.6 million barrels from the previous week. Interestingly, Strategic Petroleum Reserve increased from 351.3 million barrels to 351.6 million barrels. | fdff04a5-1630-4f53-9ebe-b5f7436eb678 |
708839.0 | 2023-11-28 00:00:00 UTC | OPEC+’s Crucial Production Cut Verdict Will Be A Turning Point for Oil Prices | DBO | https://www.nasdaq.com/articles/opecs-crucial-production-cut-verdict-will-be-a-turning-point-for-oil-prices | nan | nan | FXEmpire.com -
Highlights
OPEC+’s Nov 30 Decision: A Critical Moment for Oil Prices
Potential Deep Cuts by OPEC+ Could Spike Oil Prices
Extended Cuts May Stabilize, Not Boost, Oil Prices
Lack of new cuts could signal OPEC+ unity issues, affecting market prices
Opinion: The Future Path of Crude Oil Prices Hinges on OPEC+’s Upcoming Decisions
As OPEC+ prepares for its significant meeting on November 30, 2023, the future of crude oil prices hangs in the balance. The decision on production cuts will be a critical factor in determining the direction of oil prices in the near term. Examining the possible outcomes of this meeting provides insights into the potential trends in oil prices.
Daily Brent Crude OIl Futures
Outcome 1: Deepening Production Cuts
If OPEC+ decides to further reduce production, we could see a significant constriction in oil supply. This action, particularly if combined with additional voluntary cuts by Saudi Arabia, would likely propel oil prices upwards.
The market may experience a shift from the current state to a situation where immediate prices outpace future prices, reflecting a bullish market sentiment. This move would underpin higher oil prices, potentially pushing them significantly above current levels.
However, this could lead to the risk of reduced demand if prices climb too sharply, especially given the current fragile global economy.
Outcome 2: Extending Voluntary Cuts
If OPEC+ chooses to merely extend the current voluntary cuts, the impact on prices might be less pronounced. While this would avert a sudden increase in supply, it might not be sufficient to notably elevate prices or alter the market structure.
Prices could find a level of stability, but without the upward trajectory that more substantial cuts could provide.
This decision would reflect a more cautious approach by OPEC+, possibly influenced by geopolitical factors and the balance between maintaining market share and stabilizing prices.
Outcome 3: No New Cuts Agreement
Should OPEC+ be unable to agree on new cuts, existing voluntary reductions, primarily led by Saudi Arabia and its allies, might be the only factor preventing a decline in prices.
However, this outcome might lead to market uncertainty, potentially causing price volatility or a downward trend.
The absence of a unified decision could be interpreted as a lack of cohesion within OPEC+, possibly leading to increased market unpredictability.
Short-term Outlook
In conclusion, crude oil prices are set for a potentially unstable period. A decision to deepen cuts seems to offer the most robust support for rising oil prices.
However, the other potential outcomes present a more complex picture, with possibilities ranging from price stabilization to potential weakness, contingent on market reactions and broader economic trends.
As ever, the oil market remains subject to the delicate interplay of supply, demand, and geopolitical factors, with OPEC+’s decisions being a key influence on short-term price directions.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This action, particularly if combined with additional voluntary cuts by Saudi Arabia, would likely propel oil prices upwards. This decision would reflect a more cautious approach by OPEC+, possibly influenced by geopolitical factors and the balance between maintaining market share and stabilizing prices. As ever, the oil market remains subject to the delicate interplay of supply, demand, and geopolitical factors, with OPEC+’s decisions being a key influence on short-term price directions. | FXEmpire.com - Highlights OPEC+’s Nov 30 Decision: A Critical Moment for Oil Prices Potential Deep Cuts by OPEC+ Could Spike Oil Prices Extended Cuts May Stabilize, Not Boost, Oil Prices Lack of new cuts could signal OPEC+ unity issues, affecting market prices Opinion: The Future Path of Crude Oil Prices Hinges on OPEC+’s Upcoming Decisions As OPEC+ prepares for its significant meeting on November 30, 2023, the future of crude oil prices hangs in the balance. Daily Brent Crude OIl Futures Outcome 1: Deepening Production Cuts If OPEC+ decides to further reduce production, we could see a significant constriction in oil supply. This article was originally posted on FX Empire More From FXEMPIRE: Unstoppable Gold Rally: Eyes on Record Monthly and Weekly Closes Gold, Silver, Platinum Forecasts – Gold Rallies As Dollar Tests New Lows Crude Oil Price Forecast – Crude Oil Markets Await OPEC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Highlights OPEC+’s Nov 30 Decision: A Critical Moment for Oil Prices Potential Deep Cuts by OPEC+ Could Spike Oil Prices Extended Cuts May Stabilize, Not Boost, Oil Prices Lack of new cuts could signal OPEC+ unity issues, affecting market prices Opinion: The Future Path of Crude Oil Prices Hinges on OPEC+’s Upcoming Decisions As OPEC+ prepares for its significant meeting on November 30, 2023, the future of crude oil prices hangs in the balance. The market may experience a shift from the current state to a situation where immediate prices outpace future prices, reflecting a bullish market sentiment. This article was originally posted on FX Empire More From FXEMPIRE: Unstoppable Gold Rally: Eyes on Record Monthly and Weekly Closes Gold, Silver, Platinum Forecasts – Gold Rallies As Dollar Tests New Lows Crude Oil Price Forecast – Crude Oil Markets Await OPEC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Highlights OPEC+’s Nov 30 Decision: A Critical Moment for Oil Prices Potential Deep Cuts by OPEC+ Could Spike Oil Prices Extended Cuts May Stabilize, Not Boost, Oil Prices Lack of new cuts could signal OPEC+ unity issues, affecting market prices Opinion: The Future Path of Crude Oil Prices Hinges on OPEC+’s Upcoming Decisions As OPEC+ prepares for its significant meeting on November 30, 2023, the future of crude oil prices hangs in the balance. Daily Brent Crude OIl Futures Outcome 1: Deepening Production Cuts If OPEC+ decides to further reduce production, we could see a significant constriction in oil supply. This decision would reflect a more cautious approach by OPEC+, possibly influenced by geopolitical factors and the balance between maintaining market share and stabilizing prices. | 7c9fd398-977b-4d7f-a483-71d90243bdce |
708840.0 | 2023-11-20 00:00:00 UTC | German Buba Monthly Report: Diverse Economic Growth Amid Global Monetary Challenges | DBO | https://www.nasdaq.com/articles/german-buba-monthly-report%3A-diverse-economic-growth-amid-global-monetary-challenges | nan | nan | FXEmpire.com -
Highlights
Diverse growth in major economies; challenges persist.
Inflation declining, but risks from wage, energy sectors.
Cautious optimism in financial markets amidst volatility.
Global Economic Dynamics: Mixed Signals Amidst Challenges
The global economic landscape in the third quarter of 2023 paints a mixed picture. While the Euro area’s economic growth continued at a sluggish pace, the United States and China experienced significant upticks, primarily driven by strong private consumption.
This divergence in economic performance has contributed to a temporary boost in global economic growth, yet this upswing is overshadowed by several challenges, including tight monetary policies worldwide, soaring energy prices, and unique structural issues in China.
Industrial and Service Sector Performance
Industrial performance globally showed signs of recovery, with a notable rise in output following a weak previous quarter. However, this improvement appears short-lived, as business surveys indicate a decrease in new orders and an overall weak demand.
The services sector, too, echoes this muted sentiment, with no substantial improvement in sight. Despite these indicators, there’s no imminent threat of a global recession. Labor markets remain robust, inflation rates are declining, and real wages are on the rise, signaling a potential “soft landing” despite ongoing disinflation driven by tighter monetary policy.
Inflation and Market Outlook
Inflation continued its gradual descent. In advanced economies, consumer price inflation fell to 3.4% by October, with core inflation (excluding energy and food) also seeing a decrease to 4.1%.
Nonetheless, the future trajectory of consumer prices carries upward risks, particularly from persistent high wage growth and volatile energy markets, exacerbated by the armed conflict in the Middle East. While the immediate impact on crude oil prices has been limited, any significant disruption in the region could lead to substantial price hikes.
Financial Markets: Balancing Act Between Inflation and Economic Prospects
The international financial markets have been characterized by high, albeit declining, inflation rates and diverging economic forecasts. Central banks, such as the US Federal Reserve and the European Central Bank (ECB), have adjusted their monetary policies in response.
The Fed’s decision to hold its policy rate and the ECB’s recent rate hikes reflect their attempts to balance inflation control with economic growth. This monetary policy environment has led to varying impacts on bond yields and currency values, particularly the depreciation of the euro against the US dollar.
Short-Term Economic Forecast
Looking ahead, the market sentiment is cautiously optimistic. The global economy is expected to maintain muted growth amid easing inflation pressures. However, the risks related to wage growth and energy markets could sway this outlook. With central banks vigilant on inflation and the ongoing geopolitical tensions, the financial markets are likely to experience continued volatility.
In summary, the global economy is navigating through a phase of cautious optimism, marked by easing inflation, stable labor markets, and persistent risks from wage trends and energy dynamics. Policymakers and market participants will need to remain vigilant in the face of these evolving challenges.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Labor markets remain robust, inflation rates are declining, and real wages are on the rise, signaling a potential “soft landing” despite ongoing disinflation driven by tighter monetary policy. Nonetheless, the future trajectory of consumer prices carries upward risks, particularly from persistent high wage growth and volatile energy markets, exacerbated by the armed conflict in the Middle East. In summary, the global economy is navigating through a phase of cautious optimism, marked by easing inflation, stable labor markets, and persistent risks from wage trends and energy dynamics. | Global Economic Dynamics: Mixed Signals Amidst Challenges The global economic landscape in the third quarter of 2023 paints a mixed picture. Nonetheless, the future trajectory of consumer prices carries upward risks, particularly from persistent high wage growth and volatile energy markets, exacerbated by the armed conflict in the Middle East. In summary, the global economy is navigating through a phase of cautious optimism, marked by easing inflation, stable labor markets, and persistent risks from wage trends and energy dynamics. | This divergence in economic performance has contributed to a temporary boost in global economic growth, yet this upswing is overshadowed by several challenges, including tight monetary policies worldwide, soaring energy prices, and unique structural issues in China. Financial Markets: Balancing Act Between Inflation and Economic Prospects The international financial markets have been characterized by high, albeit declining, inflation rates and diverging economic forecasts. In summary, the global economy is navigating through a phase of cautious optimism, marked by easing inflation, stable labor markets, and persistent risks from wage trends and energy dynamics. | The services sector, too, echoes this muted sentiment, with no substantial improvement in sight. Financial Markets: Balancing Act Between Inflation and Economic Prospects The international financial markets have been characterized by high, albeit declining, inflation rates and diverging economic forecasts. In summary, the global economy is navigating through a phase of cautious optimism, marked by easing inflation, stable labor markets, and persistent risks from wage trends and energy dynamics. | cf114fa6-eef4-405a-8cc4-0b2d54a3c021 |
708841.0 | 2023-11-15 00:00:00 UTC | WTI Oil Rebounds From Session Lows As Gasoline Inventories Fall | DBO | https://www.nasdaq.com/articles/wti-oil-rebounds-from-session-lows-as-gasoline-inventories-fall | nan | nan | FXEmpire.com -
Key Insights
Crude inventories increased by 3.6 million barrels from the previous week.
Domestic oil production remained unchanged at 13.2 million bpd.
Strategic Petroleum Reserve was also unchanged at 351.3 million barrels.
On November 15, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 3.6 million barrels from the previous week, compared to analyst consensus of +1.8 million barrels. At current levels, crude oil inventories are about 2% below the five-year average for this time of the year.
Total motor gasoline inventories declined by 1.5 million barrels, while distillate fuel inventories decreased by 1.4 million barrels. It should be noted that the report for the previous week, which was not released due to a planned systems upgrade, showed that gasoline inventories declined by 6.3 million barrels.
Domestic oil production remained unchanged at 13.2 million bpd. Strategic Petroleum Reserve has also remained at the previous levels at 351.3 million barrels.
WTI oil moved away from session lows after the release of the EIA report as traders focused on declining gasoline inventories. However, traders should note that the previous report showed that crude inventories increased by 13.86 million, which is bearish for the oil market.
Meanwhile, Brent oil made an attempt to settle above the $82.00 level after the release of the EIA data. At this point, declining gasoline inventories offset the negative impact from rising crude oil inventories.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It should be noted that the report for the previous week, which was not released due to a planned systems upgrade, showed that gasoline inventories declined by 6.3 million barrels. WTI oil moved away from session lows after the release of the EIA report as traders focused on declining gasoline inventories. This article was originally posted on FX Empire More From FXEMPIRE: Hang Seng Index, ASX 200, Nikkei 225 Forecast: Asian Indices Face Volatile Trading Conditions Nasdaq 100, Dow Jones, S&P 500 News: Investors Shift Focus to Walmart’s Earnings, Rate Hike Pause Gold’s Precarious Rally: Signs of Strength and Potential Setbacks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production remained unchanged at 13.2 million bpd. However, traders should note that the previous report showed that crude inventories increased by 13.86 million, which is bearish for the oil market. | The report indicated that crude inventories increased by 3.6 million barrels from the previous week, compared to analyst consensus of +1.8 million barrels. Total motor gasoline inventories declined by 1.5 million barrels, while distillate fuel inventories decreased by 1.4 million barrels. It should be noted that the report for the previous week, which was not released due to a planned systems upgrade, showed that gasoline inventories declined by 6.3 million barrels. | It should be noted that the report for the previous week, which was not released due to a planned systems upgrade, showed that gasoline inventories declined by 6.3 million barrels. Strategic Petroleum Reserve has also remained at the previous levels at 351.3 million barrels. WTI oil moved away from session lows after the release of the EIA report as traders focused on declining gasoline inventories. | 37b54c21-60cd-4690-a68c-a4627886f285 |
708842.0 | 2023-11-11 00:00:00 UTC | The Week Ahead: Will They Won’t They? The US CPI Report and Fed Speakers in Focus | DBO | https://www.nasdaq.com/articles/the-week-ahead%3A-will-they-wont-they-the-us-cpi-report-and-fed-speakers-in-focus | nan | nan | FXEmpire.com -
Highlights
US consumer inflation, consumer spending, and Fed speakers to guide the markets on the Fed rate path.
The Pound could be in for a choppy week, with wage growth, inflation, and retail sales in focus.
Mid-week stats from China will influence commodity currencies and the appetite for riskier assets.
The US Dollar
On Tuesday, the US CPI Report kickstarts another big week for the US dollar. After several Fed pivots, the CPI Report could dictate the fate of the December Fed interest rate decision.
Retail sales figures will also be pivotal on Wednesday. An upward trend in consumption would fuel demand-driven inflation, forcing the Fed into a more hawkish Fed rate path.
On Thursday, the weekly jobless claims will draw investor interest. Tight labor market conditions support wage growth, fueling consumption and demand-driven inflation. A more hawkish Fed rate path would raise borrowing costs and reduce disposable income, impacting spending and dampening inflation.
Other stats include producer prices (Wed), NY Empire State Manufacturing Index (Wed), industrial production (Thurs), Philly Fed Manufacturing Index (Thurs), and housing sector numbers (Fri). While the numbers tend to have less influence, producer prices warrant consideration.
Beyond the numbers, investors should monitor Fed speakers throughout the week. Fed Vice Chair John Williams (Tues/Thurs) and FOMC members Christopher Waller (Thurs), Loretta Mester (Thurs), and Mary Daly (Fri) are on the calendar to speak.
The EUR
On Tuesday, German ZEW Economic Sentiment figures for November need consideration. The markets expect a German recession. A pickup in sentiment toward the economy could provide the EUR/USD brief relief.
However, Eurozone GDP numbers for the third quarter will likely have more significance.
On Wednesday, Eurozone industrial production and trade figures also need consideration before Eurozone inflation numbers on Friday.
Weaker-than-expected GDP, trade, industrial production numbers, and sticky inflation could affect sentiment toward the Eurozone economic outlook. Sticky inflation may force the ECB to pursue a hawkish interest rate trajectory at the expense of the economy.
With inflation in focus, ECB commentary also needs consideration. ECB Chief Economist Philip Lane (Tues) and Executive Board members Andrea Enria (Tues/Thurs), Frank Elderson (Tues), and Luis de Guindos (Thurs) are on the calendar to speak.
ECB President Christine Lagarde will speak on Thursday and Friday.
The Pound
It could be a choppy week for the Pound. The UK labor market will be in the spotlight on Tuesday. Wage growth will likely be a focal point. An upswing in wages could fuel consumption and demand-driven inflationary pressures. With the Bank of England (BoE) concerned about wage growth, the figures may influence market bets on the timing of a BoE rate cut.
On Wednesday, the UK CPI Report will also be influential. However, a marked softening in inflation could also influence sentiment toward the BoE rate path.
UK retail sales wrap up an important week for the Pound. An unexpected fall in consumption would ease demand-driven inflationary pressure and the need for a hawkish interest rate trajectory.
BoE commentary warrants consideration in the week. Reaction to the numbers will influence buyer appetite for the Pound.
BoE Governor Andrew Bailey (Mon) and Chief Economist Huw Pill (Tues) are on the calendar to speak. MPC members Catherine Mann (Mon), Sarah Breeden (Mon), Swati Dhingra (Tues), Jonathan Haskel (Wed), and Sir Dave Ramsden (Thurs/Fri) also deliver speeches.
The Loonie
Wholesale sales (Wed) and house starts (Thurs) will be in focus. However, the numbers are unlikely to impact the Loonie. Economic indicators from China, the weekly crude oil reports, and the OPEC monthly report will likely be focal points.
On Friday, RMPI numbers for October will need consideration.
The Australian Dollar
On Tuesday, Australian business confidence figures for October will influence the appetite for the Aussie dollar. A pickup in business confidence could signal plans to increase staffing levels.
Tighter labor market conditions could fuel consumption and demand-driven inflationary pressures. A more hawkish RBA rate path raises borrowing costs, reducing disposable income and affecting consumption.
On Wednesday, wage growth figures for the third quarter will move the dial. A pickup in wage growth could signal a positive outlook for consumer spending.
However, employment figures for October also need consideration on Friday. Softer labor market conditions would ease wage growth pressures early in the fourth quarter.
From elsewhere, economic indicators from China will also impact the Aussie dollar.
The Kiwi Dollar
On Wednesday, electronic card retail sales figures will influence the appetite for the Kiwi dollar. Another pullback in sales could ease demand-driven inflationary pressures and the need for a hawkish RBNZ rate path.
However, producer prices for the third quarter will likely garner more interest on Friday. Falling producer prices would signal a weak demand environment. A downward trend in producer prices could influence consumer price trends.
From elsewhere, economic indicators from China will also impact the Kiwi dollar.
The Japanese Yen
On Wednesday, GDP numbers for Q3 will kickstart the week for the Japanese Yen. A deterioration in economic conditions could force the Bank of Japan to maintain an ultra-loose monetary policy stance.
However, industrial production (Wed) and trade data (Thurs) also warrant consideration. Trade figures for October may have more impact on the Yen. Deteriorating trade terms would align with BoJ concerns about the economic outlook.
While the stats will influence, investors must monitor BoJ commentary and intervention warnings to bolster the Yen.
Out of China
On Wednesday, industrial production, retail sales, unemployment, and fixed asset sales for October will be in focus. Recent private sector PMI numbers signaled a deterioration in macroeconomic conditions.
Weaker-than-expected industrial production and retail sales figures could impact the appetite for commodity currencies and riskier assets.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A more hawkish Fed rate path would raise borrowing costs and reduce disposable income, impacting spending and dampening inflation. Weaker-than-expected GDP, trade, industrial production numbers, and sticky inflation could affect sentiment toward the Eurozone economic outlook. A more hawkish RBA rate path raises borrowing costs, reducing disposable income and affecting consumption. | A more hawkish Fed rate path would raise borrowing costs and reduce disposable income, impacting spending and dampening inflation. Other stats include producer prices (Wed), NY Empire State Manufacturing Index (Wed), industrial production (Thurs), Philly Fed Manufacturing Index (Thurs), and housing sector numbers (Fri). Weaker-than-expected GDP, trade, industrial production numbers, and sticky inflation could affect sentiment toward the Eurozone economic outlook. | An upward trend in consumption would fuel demand-driven inflation, forcing the Fed into a more hawkish Fed rate path. Other stats include producer prices (Wed), NY Empire State Manufacturing Index (Wed), industrial production (Thurs), Philly Fed Manufacturing Index (Thurs), and housing sector numbers (Fri). On Wednesday, Eurozone industrial production and trade figures also need consideration before Eurozone inflation numbers on Friday. | A pickup in wage growth could signal a positive outlook for consumer spending. However, producer prices for the third quarter will likely garner more interest on Friday. Out of China On Wednesday, industrial production, retail sales, unemployment, and fixed asset sales for October will be in focus. | 2320dfeb-87e6-42ae-ad43-efc4ddc91eaa |
708843.0 | 2023-10-24 00:00:00 UTC | A Complete Guide to Oil Commodity ETFs | DBO | https://www.nasdaq.com/articles/a-complete-guide-to-oil-commodity-etfs-0 | nan | nan | Oil, as a commodity known for its cyclical nature and its significant impact on the global economy, always garners the attention of investors. Thanks to tightening supply conditions and the prospect of higher demand, oil price has been surging in recent months with the expectation of reaching the triple-digit mark once again.
The global oil market is expected to face the biggest deficit in over a decade. According to the latest data published by Organization of Petroleum Exporting Countries (OPEC), the industry will likely face a supply shortfall of more than 3 million barrels a day next quarter. The shortage comes as the two major oil-producing nations, Saudi Arabia and Russia, extended their voluntary cuts to the end of the year.
Saudi Arabia has extended its voluntary oil output cut of 1 million barrels per day (bpd) until the end of December 2023 while Russia extended its oil export cuts by 300,000 bpd. Meanwhile, world oil inventories are also set for an even steeper drop of roughly 3.3 million barrels a day in the next three months, per OPEC. Further, escalating geopolitical tensions in the Middle East, especially the Israel-Hamas conflict, has raised worries that the fighting could affect regional oil production. Notably, the Middle East is home to almost a third of global supply (read: Oil Jumps on Middle East Conflict, Leveraged ETFs to Profit).
Coming to the demand side, “world oil demand is scaling record highs” said the International Energy Agency in a recent note. Global oil demand is set to expand by 2.2 million bpd to 101.8 million bpd in 2023, with China accounting for more than 70% growth. Resurgent Chinese consumption, jet fuel and petrochemical feedstocks will drive demand higher.
Given demand/supply imbalances, many analysts expect oil prices to soon rise above $100 per barrel for the first time in more than a year.
Fortunately, with the advent of ETFs, investors could easily venture into the energy sector without the need to engage in futures trading or take physical delivery of oil. We have highlighted the oil ETFs that could be interesting plays to directly deal with in the futures market.
United States Oil Fund (USO)
United States Oil Fund is the most popular ETF in the oil space, with an AUM of $1.5 billion and an average daily volume of 3.5 million shares. It seeks an average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. United States Oil Fund has an expense ratio of 0.60%.
Invesco DB Oil Fund (DBO)
Invesco DB Oil Fund provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The Index is a rules-based index composed of futures contracts on WTI. Invesco DB Oil Fund has an AUM of $268 million and charges 77 bps of annual fees. DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023).
United States Brent Oil Fund (BNO)
United States Brent Oil Fund is designed to track the daily price movements of Brent crude oil. It provides exposure to the near month futures contract traded on the ICE Futures Exchange. If the near-month futures contract is within two weeks of expiration, the benchmark will be the next month contract to expire. BNO invests primarily in listed crude oil futures contracts and other oil-related futures contracts, and may invest in forwards and swap contracts. United States Brent Oil Fund amassed $145 million in its asset base and charges 1.00% as annual fees and expenses. Volume is good as it exchanges 540,000 shares a day on average.
ProShares K-1 Free Crude Oil Strategy ETF (OILK)
ProShares K-1 Free Crude Oil Strategy ETF tracks the Bloomberg Commodity Balanced WTI Crude Oil Index, which is tied to the crude oil futures contracts. The index is not intended to track the performance of the spot price of WTI crude oil. ProShares K-1 Free Crude Oil Strategy ETF has amassed $128.3 million in its asset base and charges 71 bps in annual fees. It trades in volume of 44,000 shares a day on average.
United States 12 Month Oil Fund (USL)
United States 12 Month Oil Fund provides investors with exposure to the daily price movements of West Texas Intermediate’s light, sweet crude oil. USL's benchmark is the near-month futures contract to expire and the contracts for the following 11 months for a total of 12 consecutive months. If the near-month futures contract is within two weeks of expiration, the benchmark will be the next-month contract to expire and the contracts for the following 11 months.
United States 12 Month Oil Fund is unpopular and less liquid with an AUM of $73.1 million and an expense ratio of 0.85%. USL trades in an average daily volume of 15,000 shares.
Contango: Enemy of Oil Futures Market
While the above products provide the easiest way of gaining direct exposure to the oil commodity, these have serious consequences on the profit (or loss) incurred by the investors. This is especially true as these ETFs and ETNs need to roll from one futures contract to another in order to avoid physical delivery and are thus susceptible to roll yield.
Roll yield is positive when the futures market is in backwardation (the front-month contract is higher than the next-month contract) and negative when the futures market is in contango (the front-month contract is lower than the next-month contract). Investors should note that the state of contango could eat away returns over the longer time periods (read: Is Oil Set to Dive in 2024? ETF Areas to Gain).
However, the oil futures market is currently in a state of backwardation, which is bullish for the commodity and the oil ETFs. This signals that the oil market is tightening and demand is robust, paving the way for an oil rally. The trend is likely to continue, at least in the near term, acting as the biggest catalyst for the commodity.
If the front-month contracts were expensive than the next month, investors would enjoy profits on every roll, thereby maximizing their total returns. A market in backwardation also signifies that demand exceeds supply boosting oil prices higher. As a result, contango does not look like an obstacle for investors over the next few months.
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). | 5bdb0ffd-6bc9-4d45-994f-1e5e24833efb |
708844.0 | 2023-10-24 00:00:00 UTC | A Complete Guide to Oil Commodity ETFs | DBO | https://www.nasdaq.com/articles/a-complete-guide-to-oil-commodity-etfs | nan | nan | Oil, as a commodity known for its cyclical nature and its significant impact on the global economy, always garners the attention of investors. Thanks to tightening supply conditions and the prospect of higher demand, oil price has been surging in recent months with the expectation of reaching the triple-digit mark once again.
The global oil market is expected to face the biggest deficit in over a decade. According to the latest data published by Organization of Petroleum Exporting Countries (OPEC), the industry will likely face a supply shortfall of more than 3 million barrels a day next quarter. The shortage comes as the two major oil-producing nations, Saudi Arabia and Russia, extended their voluntary cuts to the end of the year.
Saudi Arabia has extended its voluntary oil output cut of 1 million barrels per day (bpd) until the end of December 2023 while Russia extended its oil export cuts by 300,000 bpd. Meanwhile, world oil inventories are also set for an even steeper drop of roughly 3.3 million barrels a day in the next three months, per OPEC. Further, escalating geopolitical tensions in the Middle East, especially the Israel-Hamas conflict, has raised worries that the fighting could affect regional oil production. Notably, the Middle East is home to almost a third of global supply (read: Oil Jumps on Middle East Conflict, Leveraged ETFs to Profit).
Coming to the demand side, “world oil demand is scaling record highs” said the International Energy Agency in a recent note. Global oil demand is set to expand by 2.2 million bpd to 101.8 million bpd in 2023, with China accounting for more than 70% growth. Resurgent Chinese consumption, jet fuel and petrochemical feedstocks will drive demand higher.
Given demand/supply imbalances, many analysts expect oil prices to soon rise above $100 per barrel for the first time in more than a year.
Fortunately, with the advent of ETFs, investors could easily venture into the energy sector without the need to engage in futures trading or take physical delivery of oil. We have highlighted the oil ETFs that could be interesting plays to directly deal with in the futures market.
United States Oil Fund (USO)
United States Oil Fund is the most popular ETF in the oil space, with an AUM of $1.5 billion and an average daily volume of 3.5 million shares. It seeks an average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period. United States Oil Fund has an expense ratio of 0.60%.
Invesco DB Oil Fund (DBO)
Invesco DB Oil Fund provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The Index is a rules-based index composed of futures contracts on WTI. Invesco DB Oil Fund has an AUM of $268 million and charges 77 bps of annual fees. DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023).
United States Brent Oil Fund (BNO)
United States Brent Oil Fund is designed to track the daily price movements of Brent crude oil. It provides exposure to the near month futures contract traded on the ICE Futures Exchange. If the near-month futures contract is within two weeks of expiration, the benchmark will be the next month contract to expire. BNO invests primarily in listed crude oil futures contracts and other oil-related futures contracts, and may invest in forwards and swap contracts. United States Brent Oil Fund amassed $145 million in its asset base and charges 1.00% as annual fees and expenses. Volume is good as it exchanges 540,000 shares a day on average.
ProShares K-1 Free Crude Oil Strategy ETF (OILK)
ProShares K-1 Free Crude Oil Strategy ETF tracks the Bloomberg Commodity Balanced WTI Crude Oil Index, which is tied to the crude oil futures contracts. The index is not intended to track the performance of the spot price of WTI crude oil. ProShares K-1 Free Crude Oil Strategy ETF has amassed $128.3 million in its asset base and charges 71 bps in annual fees. It trades in volume of 44,000 shares a day on average.
United States 12 Month Oil Fund (USL)
United States 12 Month Oil Fund provides investors with exposure to the daily price movements of West Texas Intermediate’s light, sweet crude oil. USL's benchmark is the near-month futures contract to expire and the contracts for the following 11 months for a total of 12 consecutive months. If the near-month futures contract is within two weeks of expiration, the benchmark will be the next-month contract to expire and the contracts for the following 11 months.
United States 12 Month Oil Fund is unpopular and less liquid with an AUM of $73.1 million and an expense ratio of 0.85%. USL trades in an average daily volume of 15,000 shares.
Contango: Enemy of Oil Futures Market
While the above products provide the easiest way of gaining direct exposure to the oil commodity, these have serious consequences on the profit (or loss) incurred by the investors. This is especially true as these ETFs and ETNs need to roll from one futures contract to another in order to avoid physical delivery and are thus susceptible to roll yield.
Roll yield is positive when the futures market is in backwardation (the front-month contract is higher than the next-month contract) and negative when the futures market is in contango (the front-month contract is lower than the next-month contract). Investors should note that the state of contango could eat away returns over the longer time periods (read: Is Oil Set to Dive in 2024? ETF Areas to Gain).
However, the oil futures market is currently in a state of backwardation, which is bullish for the commodity and the oil ETFs. This signals that the oil market is tightening and demand is robust, paving the way for an oil rally. The trend is likely to continue, at least in the near term, acting as the biggest catalyst for the commodity.
If the front-month contracts were expensive than the next month, investors would enjoy profits on every roll, thereby maximizing their total returns. A market in backwardation also signifies that demand exceeds supply boosting oil prices higher. As a result, contango does not look like an obstacle for investors over the next few months.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 938,000 shares (read: Top ETF Stories of the Nine Months of 2023). | ffc50f4d-64b8-4955-a6f6-cc30663a6ba5 |
708845.0 | 2023-10-21 00:00:00 UTC | The Week Ahead: PMI Reports, Central Bank Decisions, and Inflation on the Horizon | DBO | https://www.nasdaq.com/articles/the-week-ahead%3A-pmi-reports-central-bank-decisions-and-inflation-on-the-horizon | nan | nan | FXEmpire.com -
Highlights
Prelim October private sector PMIs to set the tone on Tuesday.
ECB interest rate decision and press conference key for the EUR/USD on Thursday.
On Friday, US inflation, personal spending, and consumer sentiment wrap up a busy week.
For the Dollar:
Private US sector PMI numbers for October will garner investor interest on Tuesday. The markets will see how the US economy performs at the start of Q4.
Service sector activity will be the focal point, contributing more than 75% to the US economy. Beyond the headline PMI, investors must consider the sub-components, including prices, employment, and new orders. Economists forecast the Services PMI to fall from 50.1 to 49.8.
On Thursday, GDP numbers for Q3 will influence investor appetite for the US dollar. Better-than-expected services PMI and GDP numbers may fuel bets on a Fed interest rate hike. However, jobless claims also need consideration. Labor market conditions remain a factor for Fed interest rate decisions.
Inflation, personal spending, and consumer sentiment figures will wrap up a busy week. Sticky inflation, and upbeat spending and sentiment numbers will likely fuel demand for the US dollar.
Away from the economic indicators, FED commentary also warrants consideration. Fed Chair Powell is on theeconomic calendarto speak on Thursday.
For the EUR:
On Tuesday, consumer sentiment figures from German and prelim private sector PMIs for the euro area will influence the appetite for the EUR/USD. The German, French, and Eurozone Services PMI will likely have more impact on the EUR.
A deterioration in service sector activity would reinforce market expectations of a Eurozone recession. The services sector accounts for more than 70% of the Eurozone economy. Economists forecast the Eurozone Services PMI to fall from 48.7 to 48.6.
German business sentiment figures will need consideration on Wednesday. However, the influence of the numbers may hinge on the PMI numbers.
On Friday, French GDP numbers for Q3 also warrant consideration. An unexpected contraction in the French economy would pressure the EUR/USD.
Beyond the economic indicators, the ECB will be in the spotlight on Thursday. The ECB interest rate decision and press conference will move the dial. Economists expect the ECB to leave interest rates unchanged at 4.5%. Barring a surprise, ECB President Lagarde will guide the EUR/USD.
For the Pound:
The UK labor market and the private sector will be in the spotlight. It could prove to be a choppy Tuesday session for the Pound.
The delayed labor market overview report will garner investor interest early in the session. After softer-than-expected wage growth, claimant counts and the UK unemployment rate need consideration. A larger-than-expected rise in claims and an increase in the unemployment rate would pressure the Pound.
However, private sector PMI numbers for October also need consideration. The Services Sector PMI will have more influence, accounting for over 70% of the UK economy. Economists forecast the Services PMI to rise from 49.3 to 49.8.
Beyond the numbers, BoE Monetary Policy Committee member Sir Jon Cunliffe is on the calendar to speak on Thursday.
For the Loonie:
The Bank of Canada will impact the buyer appetite for the Loonie on Wednesday. Economists forecast a 25-basis point interest rate hike to 5.25%. Barring a surprise, the markets will focus on the accompanying statements and press conference. A dovish rate hike may weigh on investor appetite for the Canadian dollar.
Beyond the numbers, market risk sentiment and the influence on crude oil prices will also move the dial.
Out of Asia:
For the Aussie Dollar:
The Aussie dollar will be in the hands of the private sector PMIs and the RBA on Tuesday. After the unexpectedly hawkish RBA Meeting Minutes, RBA Assistant Governor Michelle Bullock speaks on Tuesday. Support for an RBA rate hike would fuel demand for the Aussie dollar. Weaker-than-expected private sector PMIs for October may curb hawkish RBA chatter.
However, Q3 inflation numbers will likely have more influence on the Australian dollar. Economists forecast the annual inflation rate to soften from 6.00% to 5.30%, signaling sticky inflation. A higher-than-expected inflation rate would fuel bets on an RBA rate hike.
On Friday, producer prices for Q3 will also need consideration. An uptrend in producer prices would suggest resilient demand-driven inflationary pressures. Significantly, an uptrend may also translate into a pickup in consumer prices.
For the Kiwi Dollar:
There are no economic indicators from New Zealand to influence the appetite for the Kiwi dollar. The lack of economic indicators will leave the Kiwi dollar in the hands of market risk sentiment. News updates from the Middle East will impact the appetite for the commodity currencies.
For the Japanese Yen:
Private sector PMIs and inflation will move the Japanese Yen this week. On Tuesday, prelim private sector PMIs for October need consideration. The Services PMI will likely have more influence on the appetite for the Yen. Japan’s services sector accounts for over 70% of the Japanese economy. Economists forecast the Services PMI to decline from 53.8 to 52.9.
On Friday, inflation will be in the spotlight again. Hotter-than-expected inflation figures would pressure the Bank of Japan to exit negative rates. The markets also expect further tweaks to the Yield Curve Control policy.
Economists forecast the annual inflation rate for Tokyo to soften from 2.5% to 2.3% in October. National inflation eased from 3.2% to 3.0% in September, with core inflation falling below 3.0% for the first time since August 2022.
Out of China
Industrial profits will be in the spotlight on Friday. Recent economic indicators from China suggest an improving macroeconomic environment. A less marked decline in industrial profits would support views that stimulus measures are taking effect.
Economists forecast industrial profits to decline by 9.0% from January to September compared with the same period one year earlier. In August, industrial profits were down 11.7%.
This article was originally posted on FX Empire
More From FXEMPIRE:
AUD/USD Forecast – Australian Dollar Bounces Again
Gold, Silver, Copper Analysis: XAU/USD and XAG/USD Shine Amid Geopolitical Upheavals
GBP/USD Forecast – British Pound Continues to Show Volatility
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the EUR: On Tuesday, consumer sentiment figures from German and prelim private sector PMIs for the euro area will influence the appetite for the EUR/USD. Beyond the numbers, BoE Monetary Policy Committee member Sir Jon Cunliffe is on the calendar to speak on Thursday. This article was originally posted on FX Empire More From FXEMPIRE: AUD/USD Forecast – Australian Dollar Bounces Again Gold, Silver, Copper Analysis: XAU/USD and XAG/USD Shine Amid Geopolitical Upheavals GBP/USD Forecast – British Pound Continues to Show Volatility The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the Dollar: Private US sector PMI numbers for October will garner investor interest on Tuesday. Better-than-expected services PMI and GDP numbers may fuel bets on a Fed interest rate hike. For the EUR: On Tuesday, consumer sentiment figures from German and prelim private sector PMIs for the euro area will influence the appetite for the EUR/USD. | For the Dollar: Private US sector PMI numbers for October will garner investor interest on Tuesday. Better-than-expected services PMI and GDP numbers may fuel bets on a Fed interest rate hike. For the EUR: On Tuesday, consumer sentiment figures from German and prelim private sector PMIs for the euro area will influence the appetite for the EUR/USD. | For the Dollar: Private US sector PMI numbers for October will garner investor interest on Tuesday. On Thursday, GDP numbers for Q3 will influence investor appetite for the US dollar. For the Pound: The UK labor market and the private sector will be in the spotlight. | b43baa2a-d84e-42b7-b2c5-412ba3060053 |
708846.0 | 2023-10-20 00:00:00 UTC | Invesco’s Oil and Energy ETFs Are This Week’s Top Performers | DBO | https://www.nasdaq.com/articles/invescos-oil-and-energy-etfs-are-this-weeks-top-performers | nan | nan | Crude oil futures are on track for second straight weekly gains, lifting oil and broad energy ETFs.
Invesco’s four best-performing ETFs over one week all provide exposure to crude oil prices, either via futures contracts or equities.
Invesco DB Oil Fund (DBO)
DBO is Invesco’s top-performing ETF in the past week, up 5.7%. The fund has climbed 15.5% year to date.
DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark.
Invesco DB Energy Fund (DBE)
DBE is up 4.9% in the past week and has gained 3.3% year to date.
Like DBO, DBE offers exposure to commodity futures and does not hold equities. However, compared to DBO, DBE offers much broader exposure to the energy sector. DBE’s underlying index is composed of futures contracts on WTI crude, the U.S. benchmark, heating oil, Brent crude, the international benchmark, RBOB gasoline, and natural gas.
Invesco S&P 500 Equal Weight Energy ETF (RSPG)
RSPG has climbed 4.7% in the past week, bringing its year-to-date return to 12.5%.
RSPG provides balanced exposure to the energy sector. RSPG’s underlying index gives every security in the S&P 500 energy sector an equal weight at each quarterly rebalance.
An equal-weight methodology can be particularly impactful in the top-heavy energy industry, where traditional cap weighting can result in significant concentration risks.
Invesco Dynamic Energy Exploration & Production ETF (PXE)
PXE is up 4.6% in the past week and is up 16.6% year to date.
PXE offers exposure to the exploration and production sub-sector of the domestic energy market. PXE’s underlying index comprises securities of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy. This segment of the energy industry is inherently more sensitive to the rise and fall of crude oil prices.
PXE was a top performer in the past couple of years. The fund returned 58% in 2022, and an impressive 94% in 2021.
For more news, information, and analysis, visit the Innovative ETFs Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco DB Oil Fund (DBO) DBO is Invesco’s top-performing ETF in the past week, up 5.7%. DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark. | Invesco DB Oil Fund (DBO) DBO is Invesco’s top-performing ETF in the past week, up 5.7%. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark. DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. | Invesco DB Oil Fund (DBO) DBO is Invesco’s top-performing ETF in the past week, up 5.7%. DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark. | Invesco DB Oil Fund (DBO) DBO is Invesco’s top-performing ETF in the past week, up 5.7%. However, compared to DBO, DBE offers much broader exposure to the energy sector. DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. | 93fae2ad-0b3b-484e-9c57-c12c97758f85 |
708847.0 | 2023-10-18 00:00:00 UTC | Crude Inventories Decline By 4.5 Million Barrels | DBO | https://www.nasdaq.com/articles/crude-inventories-decline-by-4.5-million-barrels | nan | nan | FXEmpire.com -
Key Insights
Crude inventories missed analyst expectations.
Domestic oil production remained unchanged at 13.2 million bpd.
The U.S. did not buy oil for the Strategic Petroleum Reserve.
On October 18, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 4.5 million barrels from the previous week, compared to analyst consensus of -0.3 million barrels. At current levels, U.S. crude oil inventories are about 5% below the five-year average for this time of the year.
Total motor gasoline inventories declined by 2.4 million barrels, while distillate fuel inventories decreased by 3.2 million barrels. Crude oil imports averaged 5.9 million bpd, declining by 387,000 bpd from the previous week.
Strategic Petroleum Reserve remained unchanged at 351.3 million bpd. The U.S. is not ready to buy more oil at current levels as additional purchases will serve as a bullish catalyst for oil prices.
Domestic oil production has also remained unchanged at 13.2 million bpd. Production has recently climbed above 13.0 million bpd and it looks that it will stabilize above this psychologically important level.
WTI oil is trading near the $88.00 level after the release of the EIA report, while Brent oil settled above the $91.00 level. The report provided some support to oil prices, but traders are mostly focused on rising tensions in the Middle East.
Today, Iran proposed to impose an oil embargo on Israel. According to recent reports, OPEC has no plans for any action. At this point, the market does not believe that OPEC countries will listen to Iran’s call, although Iran’s proposal increases the geopolitical premium for oil.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Natural Gas Forecast: Bearish Momentum Continues, What’s Next for the Market?
AUD/USD Forecast – Australian Dollar Bounces After Initial Sell Off
Crude Oil Price Forecast – Crude Oil Markets Turnaround
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The report provided some support to oil prices, but traders are mostly focused on rising tensions in the Middle East. This article was originally posted on FX Empire More From FXEMPIRE: Natural Gas Forecast: Bearish Momentum Continues, What’s Next for the Market? AUD/USD Forecast – Australian Dollar Bounces After Initial Sell Off Crude Oil Price Forecast – Crude Oil Markets Turnaround The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production remained unchanged at 13.2 million bpd. Crude oil imports averaged 5.9 million bpd, declining by 387,000 bpd from the previous week. AUD/USD Forecast – Australian Dollar Bounces After Initial Sell Off Crude Oil Price Forecast – Crude Oil Markets Turnaround The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Crude oil imports averaged 5.9 million bpd, declining by 387,000 bpd from the previous week. WTI oil is trading near the $88.00 level after the release of the EIA report, while Brent oil settled above the $91.00 level. AUD/USD Forecast – Australian Dollar Bounces After Initial Sell Off Crude Oil Price Forecast – Crude Oil Markets Turnaround The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Crude oil imports averaged 5.9 million bpd, declining by 387,000 bpd from the previous week. Strategic Petroleum Reserve remained unchanged at 351.3 million bpd. Production has recently climbed above 13.0 million bpd and it looks that it will stabilize above this psychologically important level. | 7f180115-5860-4e5c-b3c6-a6dc77e8a50c |
708848.0 | 2023-10-06 00:00:00 UTC | VettaFi Voices On: Considering Commodities | DBO | https://www.nasdaq.com/articles/vettafi-voices-on%3A-considering-commodities | nan | nan | Hi VettaFi Voices! Commodities have seen outflows year to date overall, and some of the best performers have seen outflows. We discussed the "uncertain" economic environment last week, but what does that mean for how investors view commodities? Are investors scared of commodities right now? Can they be a good way to diversify a portfolio or hedge inflation? Are there better ways to get exposure than an ETF wrapper?
Todd Rosenbluth, VettaFi director of research: When I think of commodity ETFs, gold is what first comes to mind. Unfortunately, it has not been working for investors. Gold ETFs are all down fractionally for the year and down 6% in the past month, when the uncertain economic concerns became more top of mind.
The SPDR Gold Shares (GLD) and the iShares Gold Trust (IAU) are the two largest ETFs, and they each have $2.2 billion of net outflows year to date, with money rushing out in the past month. While the lower-cost SPDR Gold MiniShares Trust (GLDM) has $450 million of net inflows this year, it had slight outflows in the past month. Others like the abrdn Physical Gold Shares ETF (SGOL) and the Goldman Sachs Physical Gold ETF (AAAU) have seen slight inflows this year. But this has not been a good year for the gold ETF industry.
Meanwhile, diversified commodity ETFs like the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), the Invesco DB Commodity Index Tracking Fund (DBC), and the First Trust Global Tactical Commodity Strategy Fund (FTGC) are down close to 3% for the year. And they too have experienced net outflows of between $400 million $600 million each.
Energy Commodities
While this ETF owns stocks and is not a commodity ETF, the Sprott Uranium Miners ETF (URNM) is notable. The miners ETF is up 37% this year. Nuclear energy is top of mind for many investors, with lots of new reactors under construction, particularly in Asia. Demand outstrips supply, and this Sprott ETF is a great way to tap into that.
Oil ETFs like the United States Oil Fund LP (USO) and the Invesco DB Oil Fund (DBO) are up around 8% in value as prices have spiked higher. I need Stacey Morris to help talk about the fundamentals here.
But USO has $750 million of net ouflows this year. Investors are not turning to commodities this year as an alternative to equity and fixed income allocations.
Stacey Morris, VettaFi head of energy research: There’s definitely a lot going on in oil markets at the moment. West Texas Intermediate (WTI) closed at a relative high of $93.68 per barrel (bbl) on September 27, and as of this writing, it’s around $83/bbl. The weakness has largely been driven by demand concerns tied to a worsening economic outlook. Wednesday’s weekly inventory report from the U.S. Department of Energy showed a big jump in gasoline inventories (up 6.5 million barrels), adding to concerns and triggering headlines on demand destruction.
Questions About Demand
Meanwhile, inventories at Cushing, Oklahoma, the pricing point for WTI, are at extremely low levels, which has led to more backwardation at the front of the curve. There’s been a lot of positioning and financial trading around what’s happening at Cushing. Arguably, some of the strength in oil in September likely came from short covering for WTI contracts. With demand concerns back at the forefront, oil has taken a big hit in a week, even though Saudi Arabia and Russia remain committed to their incremental cuts through the end of this year.
For more defensive energy exposure, investors may consider midstream/MLPs. The Energy Select Sector Index (IXE), which underlies the Energy Select Sector SPDR Fund (XLE), fell 7.1% for the week ended October 4 as oil tumbled, while the Alerian MLP Infrastructure Index (AMZI), which underlies the Alerian MLP ETF (AMLP), was down 4.0%.
Rosenbluth: Stacey, I’m not asking forinvestment advice but what is the reward versus risk of getting energy exposure via an oil ETF like USO versus owning energy-stock-based ETFs. USO has outperformed XLE in 2023 but has lagged behind over the three-year period.
Morris: In short, USO can be more complex. It issues a K-1. Performance for USO can be impacted by the structure of the curve (contango versus backwardation), with backwardation typically more favorable. The relationship between oil and energy stocks isn't always perfect, but I think focusing on ETFs of energy companies can be a good way to get exposure to the commodity. The nice thing about energy companies is that they are largely focused on free cash flow and returning cash to investors through dividends and buybacks. You don't get those benefits from playing the commodity directly.
Don’t Dismiss Dividends
Rosenbluth: Good point. The barrel of oil is not paying a dividend ,let alone raising it like stocks inside AMLP are.
I'm looking through our database of commodities ETFs, and the KraneShares Global Carbon Strategy ETF (KRBN) jumps out as a positive performer. The fund owns carbon credit futures. It covers the major North American and European cap and trade programs.
Heather Bell, VettaFi managing editor: I feel like we’re overlooking agricultural commodities, though admittedly as a whole, they haven’t done much this year. Despite Ukraine’s role as a major grain producer, wheat prices are down. Based on this article from CNBC, it’s because Ukraine is finding ways to export despite the collapse of the Black Sea Grain Initiative, and production is better than expected.
But agricultural commodities are pretty important to human survival. And with all the unexpected weather events we’re having, that raises uncertainty around agriculture. That said, a lot of agricultural commodities are down year to date. The Invesco DB Agriculture Fund (DBA) is only up 6.4%, with a lot of the upside likely due to sugar -- which is on a tear -- and also the fund’s largest holding. The Teucrium Sugar Fund (CANE) is up roughly 53% during the same time period. I’m a sugar addict, so that increase makes sense to me!
The Crypto Angle
Roxanna Islam Swan, VettaFi asociate director of research: I think regardless of the current outlook, if you want exposure to commodities at any point, you'll likely want an ETF. Buying physical commodities like metals is possible, but then you have to think about storing it. Other commodities are basically impossible to buy and store (like agricultural commodities). Futures can be complex. And while commodity producer stocks can be a good choice, it opens up exposure to a lot of idiosyncrasies that you may not want. Energy stocks might have some widespread popularity, but other commodity stocks are more difficult for the average investor to get into. I'm thinking of areas like gold mining stocks and crypto miners.
Rosenbluth: I knew crypto would find its way in here. I mean, we had the first ether futures ETFs launch this week.
Islam: And I think the bitcoin example is a good way to describe how people feel about commodities, because it's in the news every day (and yes, most people consider bitcoin to be a commodity). You can buy physical bitcoin and store it in a private wallet, or you can buy it in your brokerage account as an ETF. Many investors would prefer the convenience of an ETF.
Commodities in Perspective
Rosenbluth: And you make a good point of the ease of use with a spot commodity ETF. Owning GLDM or AAAU is much easier than buying and hoping to sell gold bars at some point.
Islam: With the cost of housing lately, most people probably don't have the square footage to have their own gold vault!
Also, commodities aren't built equally. There's actually pretty low correlation between different commodities and different supply/demand dynamics. It seems like more long-term investors lean toward more "mainstream" areas like gold and bitcoin, for example. Otherwise, many of the others are used as tactical tilts. Still, there's an overall low correlation of commodities with stocks and bonds, so a main benefit is diversification. Remember that commodity allocations are usually small, like 5% of a portfolio, so they shouldn't be as scary as they seem.
Rosenbluth: Yes, commodities can play a role in a portfolio, especially if the ETF is diversified. The Harbor Commodity All-Weather Strategy ETF (HGER) is a good example that has precious metals, grains, industrials, and energy exposure.
For more news, information, and strategy, visit VettaFi.com.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for AMLP, for which it receives an index licensing fee. However, AMLP is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of AMLP.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Oil ETFs like the United States Oil Fund LP (USO) and the Invesco DB Oil Fund (DBO) are up around 8% in value as prices have spiked higher. Questions About Demand Meanwhile, inventories at Cushing, Oklahoma, the pricing point for WTI, are at extremely low levels, which has led to more backwardation at the front of the curve. With demand concerns back at the forefront, oil has taken a big hit in a week, even though Saudi Arabia and Russia remain committed to their incremental cuts through the end of this year. | Oil ETFs like the United States Oil Fund LP (USO) and the Invesco DB Oil Fund (DBO) are up around 8% in value as prices have spiked higher. While the lower-cost SPDR Gold MiniShares Trust (GLDM) has $450 million of net inflows this year, it had slight outflows in the past month. Meanwhile, diversified commodity ETFs like the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), the Invesco DB Commodity Index Tracking Fund (DBC), and the First Trust Global Tactical Commodity Strategy Fund (FTGC) are down close to 3% for the year. | Oil ETFs like the United States Oil Fund LP (USO) and the Invesco DB Oil Fund (DBO) are up around 8% in value as prices have spiked higher. Meanwhile, diversified commodity ETFs like the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), the Invesco DB Commodity Index Tracking Fund (DBC), and the First Trust Global Tactical Commodity Strategy Fund (FTGC) are down close to 3% for the year. Energy Commodities While this ETF owns stocks and is not a commodity ETF, the Sprott Uranium Miners ETF (URNM) is notable. | Oil ETFs like the United States Oil Fund LP (USO) and the Invesco DB Oil Fund (DBO) are up around 8% in value as prices have spiked higher. Meanwhile, diversified commodity ETFs like the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), the Invesco DB Commodity Index Tracking Fund (DBC), and the First Trust Global Tactical Commodity Strategy Fund (FTGC) are down close to 3% for the year. The relationship between oil and energy stocks isn't always perfect, but I think focusing on ETFs of energy companies can be a good way to get exposure to the commodity. | 4e734b08-d859-43d0-835c-76562197a329 |
708849.0 | 2023-09-27 00:00:00 UTC | Strategic Petroleum Reserve Decreased To 351 Million Barrels | DBO | https://www.nasdaq.com/articles/strategic-petroleum-reserve-decreased-to-351-million-barrels | nan | nan | FXEmpire.com -
Key Insights
Crude inventories decreased by 2.2 million barrels.
Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels.
Domestic oil production remained unchanged at 12.9 million bpd.
On September 27, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 2.2 million barrels from the previous week, compared to analyst consensus of -0.3 million barrels.
Total motor gasoline inventories grew by 1.0 million barrels, while distillate fuel inventories increased by 0.4 million barrels.
U.S. crude oil imports increased by 711,000 bpd from the previous week, averaging 7.2 million bpd. The significant increase in crude oil imports did not lead to an increase in crude inventories, which is a bullish sign.
Interestingly, Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels. In recent weeks, U.S. has started to buy oil for the strategic reserves. However, oil prices were moving higher, and it looks that U.S. decided to take a pause.
Strategic Petroleum Reserve remains near multi-decade lows, so it remains to be seen whether U.S. is ready to sell oil from the strategic reserves to put pressure on oil prices.
Domestic oil production remained unchanged at 12.9 million bpd. At this point, rising oil prices did not provide enough incentives to push domestic production above 13.0 million bpd.
WTI oil settled near multi-month highs after the release of the EIA report. Currently, WTI oil is trying to get to the test of the $93.00 level.
Brent oil has also enjoyed strong support in today’s trading session. Brent oil is trying to settle above the $94.00 level as traders react to the EIA report.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
DAX Index, FTSE 100, STOXX 600: German Inflation Speculations Fuel Market Jitters
Silver Price Forecast – Silver Continues to Look at Support Underneath
GBP/JPY Forecast – GBP/JPY Tests the 50-Day EMA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At this point, rising oil prices did not provide enough incentives to push domestic production above 13.0 million bpd. Brent oil has also enjoyed strong support in today’s trading session. This article was originally posted on FX Empire More From FXEMPIRE: DAX Index, FTSE 100, STOXX 600: German Inflation Speculations Fuel Market Jitters Silver Price Forecast – Silver Continues to Look at Support Underneath GBP/JPY Forecast – GBP/JPY Tests the 50-Day EMA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels. U.S. crude oil imports increased by 711,000 bpd from the previous week, averaging 7.2 million bpd. Interestingly, Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels. | Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels. The report indicated that crude inventories declined by 2.2 million barrels from the previous week, compared to analyst consensus of -0.3 million barrels. Strategic Petroleum Reserve remains near multi-decade lows, so it remains to be seen whether U.S. is ready to sell oil from the strategic reserves to put pressure on oil prices. | Strategic Petroleum Reserve declined from 351.2 million barrels to 351.0 million barrels. The report indicated that crude inventories declined by 2.2 million barrels from the previous week, compared to analyst consensus of -0.3 million barrels. Brent oil is trying to settle above the $94.00 level as traders react to the EIA report. | d12e070f-72c6-40eb-9b82-fdb277f82da9 |
708850.0 | 2023-09-19 00:00:00 UTC | Will Oil Test $100 In 2023? | DBO | https://www.nasdaq.com/articles/will-oil-test-%24100-in-2023 | nan | nan | FXEmpire.com -
Key Insights
Production cuts provide strong support to oil markets.
Some oil grades have tested the $100 level.
Oil markets are overbought, so traders should be prepared for a potential pullback in the near term.
The rally in the oil markets continues as traders remain focused on production cuts from Saudi Arabia and Russia. WTI oil has already settled above the $90.00 level, while Brent oil moved above $95.00. Will we see oil above the $100 level this year?
Some Oil Grades Have Already Moved Above The $100 Level
Traders are focused on the prices of WTI oil and Brent oil, but there are many grades of crude oil in the world. According to recent reports, Nigerian crude Qua Iboe and Malaysian crude Tapis have already moved above the psychologically important $100 mark.
U.S. Is Buying Oil For The Strategic Petroleum Reserve Despite Rising Prices
The recent EIA report showed that U.S. was buying oil despite rising prices. U.S. was aggressively selling oil in 2022 to put pressure on the price of oil. As a result, reserves declined by roughly 40% compared to the beginning of 2022. While U.S has started to buy oil, Strategic Petroleum Reserve remains near multi-decade lows, so the country is more or less forced to purchase oil despite the recent oil markets dynamics.
Recession Fears Have Not Materialized Yet
The rebound of China’s economy was not as strong as previously expected, but there is no worldwide recession. Demand for oil is growing while OPEC+ cuts production. Oil markets get tighter, which leads to higher prices.
Technically, Oil Is Overbought
Oil bulls enjoyed a strong rally since late August. Taking a look at the daily charts of WTI oil and Brent oil, RSI is in the overbought territory, so the risks of a pullback are increasing.
However, the fundamentals remain bullish, so oil markets will have a good chance to gain strong upside momentum even if oil pulls back from recent highs in the near term.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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NASDAQ 100, Dow Jones, S&P 500 News: Markets Surge as Investors Eye Fed’s Next Move, Powell’s Remarks
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Production cuts provide strong support to oil markets. The rally in the oil markets continues as traders remain focused on production cuts from Saudi Arabia and Russia. This article was originally posted on FX Empire More From FXEMPIRE: NASDAQ 100, Dow Jones, S&P 500 News: Markets Surge as Investors Eye Fed’s Next Move, Powell’s Remarks US Dollar Index News: DXY Direction Controlled by Fed Guidance, Powell Remarks Arthur J. Gallagher: Monster Demand Sends Stock to Highs The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some Oil Grades Have Already Moved Above The $100 Level Traders are focused on the prices of WTI oil and Brent oil, but there are many grades of crude oil in the world. U.S. Is Buying Oil For The Strategic Petroleum Reserve Despite Rising Prices The recent EIA report showed that U.S. was buying oil despite rising prices. While U.S has started to buy oil, Strategic Petroleum Reserve remains near multi-decade lows, so the country is more or less forced to purchase oil despite the recent oil markets dynamics. | Some Oil Grades Have Already Moved Above The $100 Level Traders are focused on the prices of WTI oil and Brent oil, but there are many grades of crude oil in the world. U.S. Is Buying Oil For The Strategic Petroleum Reserve Despite Rising Prices The recent EIA report showed that U.S. was buying oil despite rising prices. While U.S has started to buy oil, Strategic Petroleum Reserve remains near multi-decade lows, so the country is more or less forced to purchase oil despite the recent oil markets dynamics. | The rally in the oil markets continues as traders remain focused on production cuts from Saudi Arabia and Russia. Some Oil Grades Have Already Moved Above The $100 Level Traders are focused on the prices of WTI oil and Brent oil, but there are many grades of crude oil in the world. U.S. Is Buying Oil For The Strategic Petroleum Reserve Despite Rising Prices The recent EIA report showed that U.S. was buying oil despite rising prices. | f525840f-8599-4b87-b27c-c2f0dc180fc1 |
708851.0 | 2023-09-18 00:00:00 UTC | ETFs to Watch This Week | DBO | https://www.nasdaq.com/articles/etfs-to-watch-this-week | nan | nan | Wall Street has been on a tough ride lately and is expected to be volatile this week as well, given the UAW strike, Fed meeting, oil price at $95 per barrel and strength in the dollar. As such, investors should keep a close eye on ETFs that are most exposed to these events.
UAW Strike
The United Auto Workers (UAW) union officially launched a historic strike last Friday at select Big Three automaker plants after the failure of a new contract. The plants belong to Ford F, General Motors GM and Stellantis. The strike involves around 12,700 workers. However, the union, which represents some 150,000 workers at the three companies, warned that the action could aggravate if demands are not met.
The strike is expected to hit the production of popular car models, including Ford Bronco, Jeep Wrangler and Chevrolet Colorado. Some analysts expect that a work stoppage of three weeks or more would quickly drain the excess supply, raising vehicle prices and pushing more sales to non-union brands. This put auto ETFs like First Trust S-Network Future Vehicles & Technology ETF CARZ and Simplify Volt Robocar Disruption and Tech ETF VCAR in focus.
Fed Meet
Fed Chair Jerome Powell is expected to hold rates steady in the range of 5.25%–5.5%, nearing a 22-year-high at its meeting on Sep 19-20. Per CME Group, investors see a 93% chance that the Fed will maintain interest rates at their current levels in September and only a 7% chance it will raise rates by a quarter of a percentage point (read: A Guide to Higher Interest Rates and ETFs).
However, the Fed is likely to maintain its hawkish stance, signaling the possibility of at least one more hike this year on persistent price pressure and economic resilience. In such a scenario, dividend investing could be on the radar as dividend-paying stocks can provide a consistent income stream even if the market is volatile due to uncertainties around the Fed's future actions. Vanguard Dividend Appreciation ETF VIG, iShares Core Dividend Growth ETF DGRO and Vanguard High Dividend Yield ETF VYM are some of the popular ETFs in the space.
Oil Price
Oil price has been surging over the past three weeks and reached $95 per barrel, driven by strong demand and supply cuts from OPEC+ leaders, Saudi Arabia and Russia. Additionally, expectations of a large crude deficit in the fourth quarter and signs of economic recovery in China added to the strength.
Investors seeking to tap the strength in oil prices may bet on the ETFs that are directly linked to the futures contracts. United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market (read: ETFs to Tap Oil Price Strength).
While higher oil price is a boon for energy stocks, especially producers and explorers, it results in inflationary pressure and raises the price of products, leading to reduced consumer spending, which accounts for more than two-thirds of U.S. economic activity. The discretionary and retail sectors will thus continue to bear the brunt.
Dollar
The U.S. dollar has been hovering near six-month highs ahead of the Fed meeting. The combination of surging oil prices and the speculation of high interest rates for an extended period has driven the currency higher and is likely to do at least for the near term (read: 5 ETFs to Tap on the Longest Dollar's Rally in Years).
The expectation of higher rates is attracting more investments into the United States as investors seek higher rates than they can get in Europe and Asia, exerting upward pressure on the dollar. The two most popular ways to gain from the rise in the greenback are Invesco DB US Dollar Index Bullish Fund UUP and WisdomTree Bloomberg U.S. Dollar Bullish Fund USDU.
A strong dollar also provides an edge to domestic-focused companies as small caps do not have much exposure to the international market. The ultra-popular small-cap ETF iShares Russell 2000 ETF IWM will benefit from a rising dollar and an improving economy.
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Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports
iShares Russell 2000 ETF (IWM): ETF Research Reports
United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports
WisdomTree Bloomberg U.S. Dollar Bullish ETF (USDU): ETF Research Reports
Vanguard High Dividend Yield ETF (VYM): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market (read: ETFs to Tap Oil Price Strength). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports WisdomTree Bloomberg U.S. Dollar Bullish ETF (USDU): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports To read this article on Zacks.com click here. Wall Street has been on a tough ride lately and is expected to be volatile this week as well, given the UAW strike, Fed meeting, oil price at $95 per barrel and strength in the dollar. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market (read: ETFs to Tap Oil Price Strength). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports WisdomTree Bloomberg U.S. Dollar Bullish ETF (USDU): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports To read this article on Zacks.com click here. Vanguard Dividend Appreciation ETF VIG, iShares Core Dividend Growth ETF DGRO and Vanguard High Dividend Yield ETF VYM are some of the popular ETFs in the space. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market (read: ETFs to Tap Oil Price Strength). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports WisdomTree Bloomberg U.S. Dollar Bullish ETF (USDU): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports To read this article on Zacks.com click here. Vanguard Dividend Appreciation ETF VIG, iShares Core Dividend Growth ETF DGRO and Vanguard High Dividend Yield ETF VYM are some of the popular ETFs in the space. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market (read: ETFs to Tap Oil Price Strength). Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports WisdomTree Bloomberg U.S. Dollar Bullish ETF (USDU): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports To read this article on Zacks.com click here. Wall Street has been on a tough ride lately and is expected to be volatile this week as well, given the UAW strike, Fed meeting, oil price at $95 per barrel and strength in the dollar. | 155788e9-deeb-4170-b183-ae5eb7f6eab4 |
708852.0 | 2023-09-13 00:00:00 UTC | ETFs to Tap Oil Price Strength | DBO | https://www.nasdaq.com/articles/etfs-to-tap-oil-price-strength | nan | nan | Oil has been surging in recent months on tightening supply conditions and the prospect of higher demand. Both benchmarks reached a 10-month high with more upside potential left.
Investors seeking to tap the strength in oil prices may bet on the ETFs that are directly linked to the futures contracts. United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months.
The global oil market is expected to face the biggest deficit in over a decade. According to the latest data published by Organization of Petroleum Exporting Countries (OPEC), the industry will likely face a supply shortfall of more than 3 million barrels a day next quarter. The shortage comes as the two major oil-producing nations, Saudi Arabia and Russia, extended their voluntary cuts by the end of the year (read: Can Oil ETFs Extend its Winning Streak for First Time Since June'22?).
Saudi Arabia has extended its voluntary oil output cut of 1 million barrels per day (bpd) for another three months until the end of December 2023. Russia extended its oil export cuts by 300,000 bpd until the year-end. Meanwhile, world oil inventories, having depleted sharply this quarter, are also set for an even steeper drop of roughly 3.3 million barrels a day in the next three months, per OPEC.
Coming to the demand side, “world oil demand is scaling record highs” said the International Energy Agency in a recent note. Strong summer air travel, increased oil use in power generation and surging Chinese petrochemical activity are driving demand higher. Global oil demand is set to expand by 2.2 million bpd to 102.2 million bpd in 2023, with China accounting for more than 70% growth.
Moreover, the oil futures market is currently in a state of backwardation, where later-dated contracts are cheaper than near-term contracts in the oil futures market. This signals that the oil market is tightening and demand is robust, paving the way for an oil rally. This trend is likely to continue, at least in the near term, acting as the biggest catalyst for the commodity.
United States Oil Fund (USO)
United States Oil Fund is the most popular ETF in the oil space, with an AUM of $1.5 billion and an average daily volume of 3 million shares. It seeks an average daily percentage change in USO’s net asset value, for any period of 30 successive valuation days, within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period.
United States Oil Fund has an expense ratio of 0.60% (read: Oil ETF Hits New 52-Week High).
United States Brent Oil Fund (BNO)
United States Brent Oil Fund provides direct exposure to the spot price of Brent crude oil on a daily basis through futures contracts. BNO invests primarily in listed crude oil futures contracts and other oil-related futures contracts, and may invest in forwards and swap contracts.
United States Brent Oil Fund amassed $169.4 million in its asset base and charges 1.00% as annual fees and expenses. Volume is good as it exchanges 429,000 shares a day on average.
Invesco DB Oil Fund (DBO)
Invesco DB Oil Fund provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The Index is a rules-based index composed of futures contracts on WTI.
Invesco DB Oil Fund has an AUM of $264.9 million and charges 76 bps of annual fees. DBO trades in an average daily volume of 565,000 shares (read: Dig Oil With These Leveraged Energy ETFs).
United States 12 Month Oil Fund (USL)
United States 12 Month Oil Fund provides investors with exposure to the daily price movements of West Texas Intermediate’s light, sweet crude oil. USL's benchmark is the near-month futures contract to expire and the contracts for the following 11 months for a total of 12 consecutive months. If the near-month futures contract is within two weeks of expiration, the benchmark will be the next-month contract to expire and the contracts for the following 11 months.
United States 12 Month Oil Fund is unpopular and less liquid with an AUM of $77.3 million and an expense ratio of 0.85%. USL trades in an average daily volume of 12,000 shares.
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months. Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 565,000 shares (read: Dig Oil With These Leveraged Energy ETFs). | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO and United States 12 Month Oil Fund USL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) | 1b0e7b4f-195b-48d1-93b6-a84b4a2f15cc |
708853.0 | 2023-09-13 00:00:00 UTC | Crude Inventories Increased by 4 Million Barrels, Exceeding Analyst Expectations | DBO | https://www.nasdaq.com/articles/crude-inventories-increased-by-4-million-barrels-exceeding-analyst-expectations | nan | nan | FXEmpire.com -
Key Insights
The growth in crude inventories was driven by rising imports.
Strategic Petroleum Reserve increased to 350.6 million.
WTI oil settled above the $89.00 level.
On September 13, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories increased by 4 million barrels from the previous week, compared to analyst consensus of -1.9 million. At current levels, crude inventories are about 2% below the five-year average for this time of the year.
The increase in crude inventories was driven by the strong growth in crude oil imports, which averaged 7.6 million bpd. Total motor gasoline inventories grew by 5.6 million barrels, while distillate fuel inventories increased by 3.9 million barrels.
Strategic Petroleum Reserve increased from 350.3 million barrels to 350.6 million barrels. U.S. continued to buy oil for its strategic reserves despite rising oil prices.
Domestic oil production increased from 12.8 million bpd to 12.9 million bpd as producers reacted to the strong rally in the oil markets.
WTI oil settled near the $89.00 level as traders reacted to the EIA report, while Brent oil traded above the $92.00 level.
In addition to the EIA report, traders had a chance to take a look at the IEA report. The report indicated that oil markets were tight due to production cuts from OPEC+. IEA expects that world oil demand will grow by 2.2 million bpd in 2023, reaching historic highs of 102.2 million bpd, which is bullish for oil prices.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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Natural Gas Price Forecast – Natural Gas Continues to See Upside
USD/JPY Forecast – US Dollar Continues to Threaten Resistance Against the Yen
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights The growth in crude inventories was driven by rising imports. At current levels, crude inventories are about 2% below the five-year average for this time of the year. This article was originally posted on FX Empire More From FXEMPIRE: Natural Gas Price Forecast – Natural Gas Continues to See Upside USD/JPY Forecast – US Dollar Continues to Threaten Resistance Against the Yen GBP/USD Forecast – British Pound Dips The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The increase in crude inventories was driven by the strong growth in crude oil imports, which averaged 7.6 million bpd. Strategic Petroleum Reserve increased from 350.3 million barrels to 350.6 million barrels. Domestic oil production increased from 12.8 million bpd to 12.9 million bpd as producers reacted to the strong rally in the oil markets. | On September 13, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories increased by 4 million barrels from the previous week, compared to analyst consensus of -1.9 million. Domestic oil production increased from 12.8 million bpd to 12.9 million bpd as producers reacted to the strong rally in the oil markets. IEA expects that world oil demand will grow by 2.2 million bpd in 2023, reaching historic highs of 102.2 million bpd, which is bullish for oil prices. | The increase in crude inventories was driven by the strong growth in crude oil imports, which averaged 7.6 million bpd. U.S. continued to buy oil for its strategic reserves despite rising oil prices. Domestic oil production increased from 12.8 million bpd to 12.9 million bpd as producers reacted to the strong rally in the oil markets. | 2d648cb7-1910-4566-81ac-bfefb9029a58 |
708854.0 | 2023-09-07 00:00:00 UTC | 4 Invesco Energy ETFs Are Rallying on Rising Oil Prices | DBO | https://www.nasdaq.com/articles/4-invesco-energy-etfs-are-rallying-on-rising-oil-prices | nan | nan | After rising modestly in August, energy commodity prices have continued to advance in September, lifting energy ETFs.
Saudi Arabia and Russia on Tuesday announced they would extend voluntary cuts to oil production until the end of the year, prompting a rally in oil prices. Brent, the international crude benchmark, rose above $90 a barrel for the first time since last November.
While energy commodities continue to strengthen, four Invesco ETFs providing exposure to energy commodities and equities are rallying.
Invesco DB Oil Fund (DBO)
DBO is up 6.5% in the past week and has climbed 6.33% in one-month period.
While many other funds, including two on this list, offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark.
Of all the energy ETFs listed, DBO is the largest with $269 million in assets. The fund carries a 76 basis point expense ratio.
Invesco DB Energy Fund (DBE)
Meanwhile, DBE has advanced 4.4% in the past week. The fund is up 4.2% in a one-month period.
Like DBO, DBE offers exposure to commodity futures and does not hold equities. However, compared to DBO, DBE offers much broader exposure to the energy sector. DBE’s underlying index is composed of futures contracts on WTI crude, the U.S. benchmark, heating oil, Brent crude, the international benchmark, RBOB gasoline, and natural gas.
DBE charges 77 basis points and has $95 million in assets under management.
Invesco S&P SmallCap Energy ETF (PSCE)
PSCE has climbed 3% in one week. The fund is up 4.4% in the past month.
The fund offers exposure to small-cap companies in the broad energy sector. According to Invesco, these companies are engaged in the business of producing, distributing, or servicing energy related products, including oil and gas exploration and production, refining, oil services, and pipelines.
PSCE has $255 million in assets while charging just 29 basis points.
Invesco Dynamic Oil & Gas Services ETF (PXJ)
PXJ is up 2.9% in one week and up 3% in one month.
PXJ’s underlying index comprises 30 U.S. companies that assist in the production, processing, and distribution of oil and gas. The index therefore includes companies that are engaged in the drilling of oil and gas wells, manufacturing oil, and gas field machinery and equipment.
Additionally, companies providing services to the oil and gas industry may be included. This includes well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.
Furthermore, the fund has $37 million in assets under management and charges 63 basis points.
For more news, information, and analysis, visit the Innovative ETFs Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, compared to DBO, DBE offers much broader exposure to the energy sector. Invesco DB Oil Fund (DBO) DBO is up 6.5% in the past week and has climbed 6.33% in one-month period. While many other funds, including two on this list, offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. | DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark. Invesco DB Oil Fund (DBO) DBO is up 6.5% in the past week and has climbed 6.33% in one-month period. While many other funds, including two on this list, offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. | Invesco DB Oil Fund (DBO) DBO is up 6.5% in the past week and has climbed 6.33% in one-month period. While many other funds, including two on this list, offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark. | Invesco DB Oil Fund (DBO) DBO is up 6.5% in the past week and has climbed 6.33% in one-month period. Of all the energy ETFs listed, DBO is the largest with $269 million in assets. While many other funds, including two on this list, offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. | c7db9d8a-80f4-4178-a231-e7e8a43438fd |
708855.0 | 2023-09-07 00:00:00 UTC | Crude Inventories Decreased By 6.3 Million Barrels | DBO | https://www.nasdaq.com/articles/crude-inventories-decreased-by-6.3-million-barrels | nan | nan | FXEmpire.com -
Key Insights
Crude inventories declined by 6.3 million barrels, exceeding analyst expectations.
Strategic Petroleum Reserve grew from 349.5 million barrels to 350.3 million barrels.
Domestic oil production remained unchanged at 12.8 million bpd.
On September 7, EIA released its Weekly Petroleum Status report. The report indicated that crude inventories declined by 6.3 million barrels, compared to analyst consensus of -2.06 million barrels. At current levels, U.S. crude oil inventories are about 4% below the five-year average for this time of the year.
Total motor gasoline inventories decreased by 2.7 million barrels, while distillate fuel inventories grew by 0.7 million barrels.
Strategic Petroleum Reserve increased from 349.5 million barrels to 350.3 million barrels, so U.S. continued to buy oil for strategic reserves despite rising oil prices. U.S. purchases of oil for reserves serve as an additional positive catalyst for oil markets.
Domestic oil production remained unchanged at 12.8 million bpd. At this point, rising oil prices did not provide sufficient incentives to push production above the 13.0 million bpd level.
Interestingly, oil markets did not show a strong reaction to the EIA report. WTI oil continued to trade near the $87.50 level, while Brent oil remained close to the $90.50 level.
It looks that traders decided to take some profits off the table after the strong rally, so the bullish report did not provide immediate support to oil prices. In addition, worries about the health of the global economy and a potential rate hike from the Fed serve as additional negative catalysts for oil markets.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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GBP/USD Weekly Forecast – British Pound Falls for the Week
Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Look Bullish
Silver Weekly Price Forecast – Silver Plunges for the Week
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories declined by 6.3 million barrels, exceeding analyst expectations. At this point, rising oil prices did not provide sufficient incentives to push production above the 13.0 million bpd level. It looks that traders decided to take some profits off the table after the strong rally, so the bullish report did not provide immediate support to oil prices. | Strategic Petroleum Reserve grew from 349.5 million barrels to 350.3 million barrels. Strategic Petroleum Reserve increased from 349.5 million barrels to 350.3 million barrels, so U.S. continued to buy oil for strategic reserves despite rising oil prices. This article was originally posted on FX Empire More From FXEMPIRE: GBP/USD Weekly Forecast – British Pound Falls for the Week Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Look Bullish Silver Weekly Price Forecast – Silver Plunges for the Week The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The report indicated that crude inventories declined by 6.3 million barrels, compared to analyst consensus of -2.06 million barrels. Strategic Petroleum Reserve increased from 349.5 million barrels to 350.3 million barrels, so U.S. continued to buy oil for strategic reserves despite rising oil prices. This article was originally posted on FX Empire More From FXEMPIRE: GBP/USD Weekly Forecast – British Pound Falls for the Week Crude Oil Weekly Price Forecast – Crude Oil Markets Continue to Look Bullish Silver Weekly Price Forecast – Silver Plunges for the Week The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Strategic Petroleum Reserve grew from 349.5 million barrels to 350.3 million barrels. On September 7, EIA released its Weekly Petroleum Status report. At this point, rising oil prices did not provide sufficient incentives to push production above the 13.0 million bpd level. | 68345477-4de2-4974-aced-688b0fbb809b |
708856.0 | 2023-08-30 00:00:00 UTC | Crude Inventories Decline By 10.6 Million Barrels | DBO | https://www.nasdaq.com/articles/crude-inventories-decline-by-10.6-million-barrels | nan | nan | FXEmpire.com -
Key Insights
Crude inventories decreased by 10.6 million barrels from the previous week.
Strategic Petroleum Reserve grew from 348.9 million barrels to 349.5 million barrels.
Domestic oil production was unchanged at 12.8 million bpd.
On August 30, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 10.6 million barrels from the previous week, compared to analyst consensus of -3.3 million barrels.
Total motor gasoline inventories decreased by 0.2 million barrels, while distillate fuel inventories grew by 1.2 million barrels. Crude oil imports declined by 316,000 bpd, averaging 6.6 million bpd.
The U.S. continued to purchase oil for the Strategic Petroleum Reserve (SPR). As a result, SPR increased from 348.9 million barrels to 349.5 million barrels. It should be noted that SPR remains close to multi-decade lows, so the U.S. is buying oil despite rising prices as it must replenish reserves.
Domestic oil production remained unchanged at 12.8 million bpd. The recent pullback in the oil markets did not have any impact on domestic oil producers.
Today, traders will also stay focused on the military coup in Gabon, which is an OPEC member. Oil markets stay tight, and additional production disruptions may provide significant support to oil prices.
Currently, WTI oil is trying to settle above the $82.00 level. The significant decline in crude inventories may provide additional support to the oil market. Meanwhile, Brent oil is testing the $85.50 level.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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AUD/USD Forecast – Aussie Continues to Hesitate
Gold Stalls at a Resistance Zone Yet Remains Strong, Near the Highs of the Advance
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories decreased by 10.6 million barrels from the previous week. It should be noted that SPR remains close to multi-decade lows, so the U.S. is buying oil despite rising prices as it must replenish reserves. This article was originally posted on FX Empire More From FXEMPIRE: AUD to USD Forecast: How US Wage Growth Could Impact Australian Dollar AUD/USD Forecast – Aussie Continues to Hesitate Gold Stalls at a Resistance Zone Yet Remains Strong, Near the Highs of the Advance The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Strategic Petroleum Reserve grew from 348.9 million barrels to 349.5 million barrels. Oil markets stay tight, and additional production disruptions may provide significant support to oil prices. The significant decline in crude inventories may provide additional support to the oil market. | Strategic Petroleum Reserve grew from 348.9 million barrels to 349.5 million barrels. The report indicated that crude inventories declined by 10.6 million barrels from the previous week, compared to analyst consensus of -3.3 million barrels. Total motor gasoline inventories decreased by 0.2 million barrels, while distillate fuel inventories grew by 1.2 million barrels. | Strategic Petroleum Reserve grew from 348.9 million barrels to 349.5 million barrels. The report indicated that crude inventories declined by 10.6 million barrels from the previous week, compared to analyst consensus of -3.3 million barrels. Domestic oil production remained unchanged at 12.8 million bpd. | c9388643-31f8-46f6-a530-d906b86495c8 |
708857.0 | 2023-08-16 00:00:00 UTC | Crude Inventories Fall More Than Expected | DBO | https://www.nasdaq.com/articles/crude-inventories-fall-more-than-expected | nan | nan | FXEmpire.com -
Key Insights
Crude inventories decreased by 6 million barrels from the previous week.
Domestic oil production grew from 12.6 million bpd to 12.7 million bpd.
Strategic Petroleum Reserve increased from 347.8 million barrels to 348.4 million barrels.
On August 16, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories declined by 6 million barrels from the previous week, compared to analyst consensus of -2.3 million barrels. At current levels, U.S. crude oil inventories are 1% below the five-year average for this time of the year.
Total motor gasoline inventories declined by 0.3 million barrels, while distillate fuel inventories grew by 0.3 million barrels. Crude oil imports averaged 7.2 million bpd, rising by 0.48 million bpd from the previous week.
U.S. continued to buy oil for the Strategic Petroleum Reserve, which increased from 347.8 million barrels to 348.4 million barrels.
Domestic oil production increased from 12.6 million bpd to 12.7 million bpd as producers reacted to higher oil prices.
WTI oil remained under pressure after the release of the EIA report. Currently, WTI oil is trying to settle below the $81 level. Oil traders stay focused on the disappointing news from China, which does not grow as fast as previously expected.
Brent oil is also losing ground, trading below the $85 level. China-related worries serve as the key negative catalyst for Brent oil. The steady increase in the U.S. domestic oil production may put additional pressure on the oil markets in the near term.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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EUR/USD, GBP/USD, USD/CAD, USD/JPY – Sterling Eyes Resistance, Yen Pulls Back
Gold, Silver, Platinum – XAU/USD Dips As Treasury Yields Rise
Natural Gas Price Forecast – Natural Gas Continues to Drift
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories decreased by 6 million barrels from the previous week. Oil traders stay focused on the disappointing news from China, which does not grow as fast as previously expected. This article was originally posted on FX Empire More From FXEMPIRE: EUR/USD, GBP/USD, USD/CAD, USD/JPY – Sterling Eyes Resistance, Yen Pulls Back Gold, Silver, Platinum – XAU/USD Dips As Treasury Yields Rise Natural Gas Price Forecast – Natural Gas Continues to Drift The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production grew from 12.6 million bpd to 12.7 million bpd. On August 16, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories declined by 6 million barrels from the previous week, compared to analyst consensus of -2.3 million barrels. Crude oil imports averaged 7.2 million bpd, rising by 0.48 million bpd from the previous week. | Crude oil imports averaged 7.2 million bpd, rising by 0.48 million bpd from the previous week. U.S. continued to buy oil for the Strategic Petroleum Reserve, which increased from 347.8 million barrels to 348.4 million barrels. Domestic oil production increased from 12.6 million bpd to 12.7 million bpd as producers reacted to higher oil prices. | FXEmpire.com - Key Insights Crude inventories decreased by 6 million barrels from the previous week. On August 16, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories declined by 6 million barrels from the previous week, compared to analyst consensus of -2.3 million barrels. Domestic oil production increased from 12.6 million bpd to 12.7 million bpd as producers reacted to higher oil prices. | f1ea1b39-2465-4013-9b17-980cfedb527f |
708858.0 | 2023-08-15 00:00:00 UTC | Can Oil ETFs Extend its Winning Streak for First Time Since June'22? | DBO | https://www.nasdaq.com/articles/can-oil-etfs-extend-its-winning-streak-for-first-time-since-june22 | nan | nan | The energy market is on a tear. The September West Texas Intermediate (WTI) crude oil contracts witnessed a solid rally for the seventh consecutive week, marking first such instance since June 2022, per CNBC. Similarly, the October Brent crude oil contracts, which serve as an international benchmark, also experienced a seven-week streak of gains (read: Oil Price Rallies: Sector ETFs to Benefit).
September natural gas contracts exhibited a huge climb of 7.5% last week. This increase stands as the most substantial weekly surge since mid-June. September gasoline contracts recorded a notable gain of 6.5% last week, marking the most substantial weekly rise since early March. This increase also marks the fourth time in the past five weeks that gasoline prices have risen.
Among the eleven primary sectors within the S&P 500, the Energy Index displayed the most outstanding performance last week. It surged by 3.5%, outperforming the Healthcare Index, which gained 2.5%, and the S&P 500 as a whole, which experienced a modest loss of 0.3%.
What’s Behind the Surge?
This surge was aided by a combination of geopolitical tensions and extended output cuts by major oil-producing nations. Below we highlight the triggering factors in detail.
OPEC ace Saudi Arabia, the world's top oil exporter, extended its voluntary crude oil output cut of one million barrels per day until the end of September. The initial cut was implemented in July through August and was later extended with the possibility of further extensions and deepening.
Plus, Ukraine's naval drone attack on Russia's port of Novorossiysk, a crucial hub for Russian oil exports on the Black Sea, heightened geopolitical tensions. This incident led to concerns about potential disruptions in oil supply from Russia, the world's second-largest oil exporter, per a CNBC article.
A few upbeat U.S. economic data points and policy easing in China have boosted oil prices in recent weeks on hopes of higher demand. Aso, expectations that the Fed is nearing the end of its monetary tightening cycle have boosted market sentiment and contributed to the latest oil price rally. United States Oil Fund LP (USO) is up 12.7% past month (as of Aug 11, 2023).
Oil Prices to Soften Ahead?
Citi's Ed Morse, the global head of commodity research at the bank, is relatively more optimistic about crude oil supplies after September. He anticipates that Saudi Arabia and Russia's output will likely increase in October, leading to a potential price ceiling of $90 per barrel this quarter. Morse also cites limited demand growth, particularly in China, as a contributing factor to price stability beyond the current quarter.
Notably, real estate trouble once again flared in China as one of the biggest developers – Country Garden – crisis hits record low after profit warning. The company is also reeling under debt pressure. Two years ago, China’s real estate behemoth Evergrande's default triggered chaos in the global markets. Since then, China's ailing property sector has tried to stand on its foot with the government’s help. But we can see little progress has been made so far.
If this was not enough, a clear majority of investors anticipate that the U.S. economy will bumped into a recession by the end of 2024, according to a recent Bloomberg survey. Moody's recently downgraded the credit ratings of 10 U.S. banks and warned of possible cuts to more lenders. Moody's announcement came after the ratings firm Fitch downgraded U.S. government debt rating in early August. All these factors raise demand woes for energy (read: Moody's Downgrade 10 U.S. Banks: ETF Strategies to Play).
ETFs in Focus
Against this backdrop, investors need to take a cautious approach while it comes to oil investing. In a bull case scenario, oil ETFs like ProShares K-1 Free Crude Oil Strategy ETF OILK, Invesco DB Oil Fund DBO and Invesco DB Oil Fund USL could be winning picks. These ETFs added gains of 12.59%, 12.52% and 12.40% past month (as of Aug 11, 2023), respectively.
However, if oil prices slump on global growth issues and the rise in the greenback, investors can bet on inverse/leveraged oil ETFs like MicroSectors Energy 3X Inverse Leveraged ETNs WTID, MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN OILD and ProShares UltraShort Bloomberg Crude Oil (SCO).
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United States Oil ETF (USO): ETF Research Reports
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United States 12 Month Oil ETF (USL): ETF Research Reports
MicroSectors Oil & Gas E&P -3x Inverse Leveraged ETNs (OILD): ETF Research Reports
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ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a bull case scenario, oil ETFs like ProShares K-1 Free Crude Oil Strategy ETF OILK, Invesco DB Oil Fund DBO and Invesco DB Oil Fund USL could be winning picks. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports MicroSectors Oil & Gas E&P -3x Inverse Leveraged ETNs (OILD): ETF Research Reports MicroSectors Energy -3X Inverse Leveraged ETNs (WTID): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. The September West Texas Intermediate (WTI) crude oil contracts witnessed a solid rally for the seventh consecutive week, marking first such instance since June 2022, per CNBC. | In a bull case scenario, oil ETFs like ProShares K-1 Free Crude Oil Strategy ETF OILK, Invesco DB Oil Fund DBO and Invesco DB Oil Fund USL could be winning picks. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports MicroSectors Oil & Gas E&P -3x Inverse Leveraged ETNs (OILD): ETF Research Reports MicroSectors Energy -3X Inverse Leveraged ETNs (WTID): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. However, if oil prices slump on global growth issues and the rise in the greenback, investors can bet on inverse/leveraged oil ETFs like MicroSectors Energy 3X Inverse Leveraged ETNs WTID, MicroSectors Oil & Gas Exp. | In a bull case scenario, oil ETFs like ProShares K-1 Free Crude Oil Strategy ETF OILK, Invesco DB Oil Fund DBO and Invesco DB Oil Fund USL could be winning picks. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports MicroSectors Oil & Gas E&P -3x Inverse Leveraged ETNs (OILD): ETF Research Reports MicroSectors Energy -3X Inverse Leveraged ETNs (WTID): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. However, if oil prices slump on global growth issues and the rise in the greenback, investors can bet on inverse/leveraged oil ETFs like MicroSectors Energy 3X Inverse Leveraged ETNs WTID, MicroSectors Oil & Gas Exp. | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports MicroSectors Oil & Gas E&P -3x Inverse Leveraged ETNs (OILD): ETF Research Reports MicroSectors Energy -3X Inverse Leveraged ETNs (WTID): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. In a bull case scenario, oil ETFs like ProShares K-1 Free Crude Oil Strategy ETF OILK, Invesco DB Oil Fund DBO and Invesco DB Oil Fund USL could be winning picks. OPEC ace Saudi Arabia, the world's top oil exporter, extended its voluntary crude oil output cut of one million barrels per day until the end of September. | c649d7b0-a076-432e-8fc6-cf3b3c66051a |
708859.0 | 2023-08-09 00:00:00 UTC | EIA Report Shows That U.S. Has Started Buying Oil For Reserves | DBO | https://www.nasdaq.com/articles/eia-report-shows-that-u.s.-has-started-buying-oil-for-reserves | nan | nan | FXEmpire.com -
Key Insights
Crude inventories grew by 5.9 million barrels from the previous week.
Domestic oil production increased from 12.2 million bpd to 12.6 million bpd as producers reacted to higher oil prices.
Strategic Petroleum Reserve grew from 346.8 million to 347.8 million as U.S. has started buying oil for reserves.
On August 9, EIA released Weekly Petroleum Status Report, which indicated that crude inventories increased by 5.9 million barrels from the previous week. Analysts expected that crude inventories would grow by 0.57 million barrels. At current levels, U.S. crude oil inventories are slightly below the five-year average for this time of the year.
Total motor gasoline inventories declined by 2.7 million barrels, while distillate fuel inventories decreased by 1.7 million barrels. Crude oil imports averaged 6.7 million bpd, in line with the previous week.
The report highlighted strong growth in domestic oil production, which increased from 12.2 million bpd to 12.6 million bpd. Rising oil prices provided material support to domestic oil production.
Strategic Petroleum Reserve increased from 346.8 million barrels to 347.8 million barrels, which means that U.S. has finally started to buy oil for its strategic reserves. At current levels, SPR remains extremely close to multi-decade lows.
WTI oil tested new highs near the $84.50 level after the release of the EIA report. U.S. has started to buy oil into SPR, so the tight market has a new buyer. Brent oil tested the $87.50 level. The general market sentiment remains bullish as traders ignore resession worries and focus on the recent production cuts from Saudi Arabia and Russia.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At current levels, U.S. crude oil inventories are slightly below the five-year average for this time of the year. The general market sentiment remains bullish as traders ignore resession worries and focus on the recent production cuts from Saudi Arabia and Russia. This article was originally posted on FX Empire More From FXEMPIRE: USD/JPY Forecast – US Dollar Continues to Find Buyers on Dips GBP/JPY Forecast – British Pound Continues to Rally Against the Yen EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds From Session Lows As Traders Digest Inflation Data The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production increased from 12.2 million bpd to 12.6 million bpd as producers reacted to higher oil prices. Strategic Petroleum Reserve grew from 346.8 million to 347.8 million as U.S. has started buying oil for reserves. On August 9, EIA released Weekly Petroleum Status Report, which indicated that crude inventories increased by 5.9 million barrels from the previous week. | Domestic oil production increased from 12.2 million bpd to 12.6 million bpd as producers reacted to higher oil prices. The report highlighted strong growth in domestic oil production, which increased from 12.2 million bpd to 12.6 million bpd. Strategic Petroleum Reserve increased from 346.8 million barrels to 347.8 million barrels, which means that U.S. has finally started to buy oil for its strategic reserves. | On August 9, EIA released Weekly Petroleum Status Report, which indicated that crude inventories increased by 5.9 million barrels from the previous week. At current levels, U.S. crude oil inventories are slightly below the five-year average for this time of the year. Strategic Petroleum Reserve increased from 346.8 million barrels to 347.8 million barrels, which means that U.S. has finally started to buy oil for its strategic reserves. | 2c8dcb3b-11c0-450d-929b-a68eeed08217 |
708860.0 | 2023-08-06 00:00:00 UTC | The Week Ahead – US CPI Report Could Refuel Fed Rate Hike Bets | DBO | https://www.nasdaq.com/articles/the-week-ahead-us-cpi-report-could-refuel-fed-rate-hike-bets | nan | nan | FXEmpire.com -
On the Macro
It’s a big week ahead on the economic calendar. While the Fed will not deliver another interest rate decision until September, the USeconomic calendarwill influence bets on a September Fed rate hike. The US CPI Report and Producer Price Index numbers are in focus.
For the Dollar:
The US CPI Report and weekly jobless claims figures will move the dial on Thursday. While recent labor market numbers suggest a softening in labor market conditions, the US unemployment rate and wage growth remain bugbears for the Fed. A hotter-than-expected CPI Report would fuel bets on a Fed rate hike and reignite recessionary jitters.
At the end of the week, investors must also consider producer price index numbers and Michigan Consumer Sentiment figures.
Beyond the numbers, FOMC member chatter will also move the dial.
Other stats include trade data (Tue) that should have a limited impact on the dollar and market risk sentiment.
For the EUR:
It’s a quieter week for the EUR. On Monday, German industrial production numbers will draw interest. Factory orders defied gravity for a second consecutive month in June. The numbers suggest a sharp increase in production that would contrast with the latest manufacturing PMI survey-based figures.
Other stats include finalized inflation figures from Germany, France, and Spain. We expect EUR/USD sensitivity to revisions.
From the ECB, the ECB Economic Bulletin will also move the dial. Investors need clues on what’s next from the ECB.
For the Pound:
It is a busier week for the Pound. However, investors need to wait until Friday for the UK GDP Report. The second quarter GDP and manufacturing production figures will likely be focal points.
Other stats include July housing sector data and BRC Retail Sales Monitor numbers. However, barring dire figures, the stats should have a limited impact on the GBP to USD pairing.
With theeconomic calendaron the busy side, investors should track BoE chatter throughout the week. BoE Chief Economist Huw Pill (Mon) is on the calendar to speak. Huw Pill will hold a monetary policy report live Q&A at 1700 BST.
For the Loonie:
It is another quiet week for the Loonie. However, trade data (Tue) will influence early in the week. On Wednesday, investors will likely brush aside building permit numbers for June.
With theeconomic calendaron the light side, crude oil prices and market risk sentiment will provide direction.
Out of Asia
For the Aussie Dollar:
It is a quiet week ahead for the Aussie Dollar, with the July NAB Business Confidence Report (Tue) the only report to consider.
The lighteconomic calendarwill leave the Aussie dollar in the hands of stimulus news from Beijing and economic indicators from China.
For the Kiwi Dollar:
It’s a relatively quiet week for the Kiwi Dollar. Electronic card retail sales (Wed) and business PMI (Fri) numbers for July will draw interest. However, inflation expectations (Wed) will have more impact.
Numbers from China will also need consideration.
For the Japanese Yen:
It is a quiet week for the Japanese Yen. Household spending numbers for June will move the dial on Tuesday. The jury is out on whether the Japanese economy is beginning to gain momentum. Consumption remains a consideration for the BoJ.
Beyond theeconomic calendar any Bank of Japan moves to tackle yields and market risk sentiment will also influence.
Out of China
It is a busy week ahead. Trade data for July will draw interest on Tuesday ahead of inflation numbers on Wednesday. Both reports will affect market risk sentiment.
However, stimulus chatter will also move the dial.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With theeconomic calendaron the light side, crude oil prices and market risk sentiment will provide direction. The lighteconomic calendarwill leave the Aussie dollar in the hands of stimulus news from Beijing and economic indicators from China. This article was originally posted on FX Empire More From FXEMPIRE: Unlocking Potential: Natural Gas Eyes Upside Breakout Beyond 2.79 US Dollar Index News: DXY Rebound Fueled by Higher Inflation Expectations NASDAQ 100, Dow Jones, S&P 500: Investors Eye Inflation Data as Dow Leaps Forward on Strong Earnings The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Out of Asia For the Aussie Dollar: It is a quiet week ahead for the Aussie Dollar, with the July NAB Business Confidence Report (Tue) the only report to consider. Trade data for July will draw interest on Tuesday ahead of inflation numbers on Wednesday. This article was originally posted on FX Empire More From FXEMPIRE: Unlocking Potential: Natural Gas Eyes Upside Breakout Beyond 2.79 US Dollar Index News: DXY Rebound Fueled by Higher Inflation Expectations NASDAQ 100, Dow Jones, S&P 500: Investors Eye Inflation Data as Dow Leaps Forward on Strong Earnings The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the Dollar: The US CPI Report and weekly jobless claims figures will move the dial on Thursday. Out of Asia For the Aussie Dollar: It is a quiet week ahead for the Aussie Dollar, with the July NAB Business Confidence Report (Tue) the only report to consider. This article was originally posted on FX Empire More From FXEMPIRE: Unlocking Potential: Natural Gas Eyes Upside Breakout Beyond 2.79 US Dollar Index News: DXY Rebound Fueled by Higher Inflation Expectations NASDAQ 100, Dow Jones, S&P 500: Investors Eye Inflation Data as Dow Leaps Forward on Strong Earnings The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other stats include trade data (Tue) that should have a limited impact on the dollar and market risk sentiment. However, inflation expectations (Wed) will have more impact. Trade data for July will draw interest on Tuesday ahead of inflation numbers on Wednesday. | 26b568da-5ed4-48ad-a88d-6a1d43fe6737 |
708861.0 | 2023-08-04 00:00:00 UTC | 4 Invesco Energy ETFs That Rallied Last Month | DBO | https://www.nasdaq.com/articles/4-invesco-energy-etfs-that-rallied-last-month | nan | nan | Many of the top-performing ETFs last month offered exposure to the energy sector.
Energy ETFs rallied tremendously in July, offsetting the declines seen during the first half. Oil and natural gas prices dramatically improved during the month, lifting by the improving economic outlook. Additionally, the recent supply cuts by OPEC+ have tightened supply and demand fundamentals.
See more: “High Beta SPHB Continues Rally, Outpaced S&P 500 in July”
1. Invesco Dynamic Oil & Gas Services ETF (PXJ)
PXJ was Invesco’s top-performing energy ETF in July, up 18.9% during the month. The fund is now up 16.8% year to date.
PXJ’s underlying index comprises 30 U.S. companies that assist in the production, processing, and distribution of oil and gas. The index includes companies that are engaged in the drilling of oil and gas wells, manufacturing oil, and gas field machinery and equipment.
Additionally, companies providing services to the oil and gas industry may be included. This includes well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.
The fund has $36 million in assets under management and charges 63 basis points.
2. Invesco S&P SmallCap Energy ETF (PSCE)
PSCE was up 16.7% in July, bringing the fund’s year-to-date gains to 9.6%.
The fund offers exposure to small-cap companies in the broad energy sector. According to Invesco, these companies are engaged in the business of producing, distributing or servicing energy related products, including oil and gas exploration and production, refining, oil services, and pipelines.
PSCE has $235 million in assets and charges 29 basis points.
3. Invesco DB Oil Fund (DBO)
DBO rallied 14.5% in July and is up 6.1% year to date.
While PXJ and PSCE offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI).
The largest in the group, DBO has $257 million in assets. The fund charges 76 basis points.
4. Invesco DB Energy Fund (DBE)
DBE gained 12.8% in July, partially recouping earlier losses. The fund is down 1.6% year to date, lagging the other fund’s mentions but outpacing the Bloomberg Commodity index.
Like DBO, DBE offers exposure to commodity futures and does not hold equities. However, compared to DBO, DBE offers much broader exposure to the energy sector. DBE’s underlying index is composed of futures contracts on light sweet crude oil (WTI), heating oil, Brent crude oil, RBOB gasoline, and natural gas.
DBE is the priciest offering in the group, charging 77 basis points. The fund has $84 million in assets.
For more news, information, and analysis, visit the Innovative ETFs Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI). Invesco DB Oil Fund (DBO) DBO rallied 14.5% in July and is up 6.1% year to date. While PXJ and PSCE offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to commodity futures. | DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI). Invesco DB Oil Fund (DBO) DBO rallied 14.5% in July and is up 6.1% year to date. While PXJ and PSCE offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to commodity futures. | Invesco DB Oil Fund (DBO) DBO rallied 14.5% in July and is up 6.1% year to date. While PXJ and PSCE offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI). | Invesco DB Oil Fund (DBO) DBO rallied 14.5% in July and is up 6.1% year to date. Like DBO, DBE offers exposure to commodity futures and does not hold equities. While PXJ and PSCE offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to commodity futures. | 747aa2d9-3364-480e-bb7a-04a8e66551f6 |
708862.0 | 2023-08-02 00:00:00 UTC | Crude Inventories Decline By 17 Million Barrels | DBO | https://www.nasdaq.com/articles/crude-inventories-decline-by-17-million-barrels | nan | nan | FXEmpire.com -
Key Insights
Crude inventories declined by 17 million barrels, but oil markets moved lower.
Crude oil imports increased by 0.3 million bpd.
Domestic oil production remained unchanged at 12.2 million bpd.
On August 2, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories decreased by 17 million barrels from the previous week, compared to analyst consensus of -1.4 million barrels.
Total motor gasoline inventories increased by 1.5 million barrels from the previous week, while distillate fuel inventories declined by 0.8 million barrels.
Crude oil imports averaged 6.7 million bpd, rising by 0.3 million bpd from the previous week.
Domestic oil production remained unchanged at 12.2 million bpd. In recent months, domestic oil production has mostly ranged between 12.2 million bpd and 12.4 million bpd.
Strategic Petroleum Reserve remained unchanged at multi-decade lows at 346.8 million barrels. The sales of oil from SPR have been stopped, and traders expect that U.S. will start buying oil for SPR some time this year. However, it remains to be seen whether U.S. will start to replenish SPR when WTI oil is trading near the $80 level.
WTI oil moved below the $80 level after the release of the EIA report. While crude inventories declined by 17 million barrels, traders decided to take some profits off the table after the recent rally.
Brent oil has also found itself under significant pressure and moved towards the $83.50 level. U.S. debt downgrade served as an additional negative catalyst for Brent oil.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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Gold, Silver, Platinum – Gold Tests Support At $1935
US Dollar Index News: DXY Higher Amid Strong US Labor Market Data, Weak Sterling
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories declined by 17 million barrels, but oil markets moved lower. While crude inventories declined by 17 million barrels, traders decided to take some profits off the table after the recent rally. This article was originally posted on FX Empire More From FXEMPIRE: S&P 500 Price Forecast – S&P 500 Sits on Support Gold, Silver, Platinum – Gold Tests Support At $1935 US Dollar Index News: DXY Higher Amid Strong US Labor Market Data, Weak Sterling The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production remained unchanged at 12.2 million bpd. FXEmpire.com - Key Insights Crude inventories declined by 17 million barrels, but oil markets moved lower. | The report indicated that crude inventories decreased by 17 million barrels from the previous week, compared to analyst consensus of -1.4 million barrels. Crude oil imports averaged 6.7 million bpd, rising by 0.3 million bpd from the previous week. In recent months, domestic oil production has mostly ranged between 12.2 million bpd and 12.4 million bpd. | Domestic oil production remained unchanged at 12.2 million bpd. However, it remains to be seen whether U.S. will start to replenish SPR when WTI oil is trading near the $80 level. | 0addea28-79f8-47f7-9bf1-0dd98c9078cd |
708863.0 | 2023-07-21 00:00:00 UTC | Oil Market Could Be Poised for Future Strength | DBO | https://www.nasdaq.com/articles/oil-market-could-be-poised-for-future-strength | nan | nan | The global transition to alternative energy sources is dominating the energy news in the capital markets as of late. However, that doesn't mean there aren't any opportunities in oil. The market could be poised for a turn for the better after its rough first half of 2023.
"Betting on a tighter oil market has been a bad trade for most of this year. But there are signs it’s finally paying off," a recent Bloomberg article noted.
China, in particular, could help fuel demand as the effects of the pandemic start to dissipate. On the supply side, cutbacks by OPEC could help add additional tailwinds for oil prices to trend higher.
"After languishing for months, crude surged above $80 a barrel in London last week as fuel demand in China and elsewhere recovers from the pandemic to reach new highs," Bloomberg added. "That’s happening just as production cutbacks by Saudi Arabia and its OPEC+ allies are set to rapidly drain storage tanks around the world."
2 ETF Options in Oil
As a portfolio diversification tool to add commodities exposure or for short-term trading opportunities, oil ETFs can provide easy ingress. One fund to consider is the Invesco DB Oil Fund (DBO).
Per the fund description, DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER). This particular index reflects the changes in market value of crude oil. The single index commodity consists of Light, Sweet Crude Oil (WTI). The fund invests in futures contracts in an attempt to track its corresponding index.
Additionally, a rise in oil demand could also pave the way for ancillary services in the oil industry to gain strength. That said, for indirect exposure to oil prices, one ETF to consider is the Invesco Dynamic Oil & Gas Services ETF (PXJ).
The fund seeks to track the investment results of the Dynamic Oil Services Intellidex Index. The Index is composed of stocks of 30 U.S. companies that assist in the production, processing and distribution of oil and gas.
For more news and information, visit the Innovative ETFs Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Per the fund description, DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER). One fund to consider is the Invesco DB Oil Fund (DBO). "After languishing for months, crude surged above $80 a barrel in London last week as fuel demand in China and elsewhere recovers from the pandemic to reach new highs," Bloomberg added. | One fund to consider is the Invesco DB Oil Fund (DBO). Per the fund description, DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER). 2 ETF Options in Oil As a portfolio diversification tool to add commodities exposure or for short-term trading opportunities, oil ETFs can provide easy ingress. | One fund to consider is the Invesco DB Oil Fund (DBO). Per the fund description, DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER). 2 ETF Options in Oil As a portfolio diversification tool to add commodities exposure or for short-term trading opportunities, oil ETFs can provide easy ingress. | One fund to consider is the Invesco DB Oil Fund (DBO). Per the fund description, DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER). This particular index reflects the changes in market value of crude oil. | 07354f38-843e-4d4b-be27-c6f4a920f16a |
708864.0 | 2023-07-18 00:00:00 UTC | Here's Why Oil ETFs Likely to Gain in the Near Term | DBO | https://www.nasdaq.com/articles/heres-why-oil-etfs-likely-to-gain-in-the-near-term | nan | nan | Despite prevailing economic challenges impacting the broader energy industry, investor confidence regarding the oil market is optimistic. The price of oil remains strong and there is potential for further increase as global crude consumption is expected to rise. United States Oil Fund LP USO and United States Brent Oil Fund, LP BNO has gained 9.1% and 8.5%, respectively, in the past one month (as of Jul 14, 2022).
Inside Rising Oil Prices
West Texas Intermediate (WTI) oil recently reached its highest level since late April and is currently trading above $76 per barrel. Brent crude is trading at over $81 per barrel, indicating a robust pricing environment. Positive projections for global oil demand, a weaker U.S. dollar, and ongoing supply cuts from OPEC+ have contributed to these price trends.
The recessionary fears are ebbing in the United States. Goldman Sachs expects a 20% chance of a U.S. recession in the next 12 months, per a Yahoo Finance article. The firm had initially predicted a 25% probability of a recession, which is significantly lower than the 54% chance indicated by the consensus estimates mentioned in the Wall Street Journal. It means higher energy demand is likely ahead.
U.S. investors now expect a possible tightening of U.S. crude supplies. The data is about to release later on Tuesday. Four analysts polled by Reuters estimated on average that U.S. crude inventories dropped by about 2.3 million barrels in the week to July 14, per Reuters, as quoted on a Yahoo article.
According to the latest monthly oil market report from the Organization of the Petroleum Exporting Countries (OPEC), the forecast for global oil market demand growth in 2023 has been revised upward to 2.44 thousand barrels per day (mb/d), compared to the previous estimate of 2.35 mb/d. The report also highlights expectations of increased oil consumption next year, driven by improved economic growth worldwide.
The International Energy Agency's most recent monthly report states that global oil demand is expected to reach 102.1 mb/d this year, indicating a growth of 2.2 mb/d. The U.S. recessionary fears are also easing. Therefore, with tightening supply and higher commodity consumption, the outlook for crude prices remains favorable in the near term.
ETFs in Focus
United States Oil Fund LP (USO)
The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. The fund charges 60 bps in fees.
Invesco DB Oil Fund (DBO)
The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. The fund charges 76 bps in fees.
ProShares K-1 Free Crude Oil Strategy ETF (OILK)
The underlying Bloomberg Commodity Balanced WTI Crude Oil Index aims to track the performance of three separate contract schedules for WTI crude oil futures, which are reset on a semiannual basis. The fund charges 71 bps in fees and yields 4.94% annually.
United States 12 Month Oil Fund LP (USL)
The underlying WTI Light Sweet Crude Oil Index reflects the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. This is done by tracking the changes in the average of the prices of the 12 futures contracts for WTI oil on the NYMEX, consisting of the near month and the contracts for the following 11 months for a total of 12 consecutive contracts. The fund charges 85 bps in fees.
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco DB Oil Fund (DBO) The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Positive projections for global oil demand, a weaker U.S. dollar, and ongoing supply cuts from OPEC+ have contributed to these price trends. | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. ETFs in Focus United States Oil Fund LP (USO) The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. | Invesco DB Oil Fund (DBO) The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. ETFs in Focus United States Oil Fund LP (USO) The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Invesco DB Oil Fund (DBO) The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. The International Energy Agency's most recent monthly report states that global oil demand is expected to reach 102.1 mb/d this year, indicating a growth of 2.2 mb/d. | b158ec4a-b4a8-468c-9578-4de863723522 |
708865.0 | 2023-07-12 00:00:00 UTC | Crude Inventories Increased By 5.9 Million Barrels, Exceeding Analyst Expectations | DBO | https://www.nasdaq.com/articles/crude-inventories-increased-by-5.9-million-barrels-exceeding-analyst-expectations | nan | nan | FXEmpire.com -
Key Insights
Crude inventories are 1% above the five-year average for this time of the year.
Strategic Petroleum Reserve declined to new lows at 346.8 million barrels.
Domestic oil production decreased from 12.4 million bpd to 12.3 million bpd.
On July 12, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories increased by 5.9 million barrels from the previous week, compared to analyst consensus of +0.5 million barrels. At current levels, crude oil inventories are approximately 1% above the five-year average for this time of the year.
Total motor gasoline inventories have slightly decreased from last week, while distillate fuel inventories increased by 4.8 million barrels. Crude oil imports declined by 1.2 million bpd, averaging 5.9 million bpd.
Strategic Petroleum Reserve declined from 347.2 million barrels to multi-decade lows at 346.8 million barrels. Domestic oil production decreased from 12.4 million bpd to 12.3 million bpd. In recent weeks, domestic oil production remained in the 12.2 million bpd – 12.4 million bpd range.
Oil markets remained close to session highs after the release of the EIA report. WTI oil settled near the $76.00 level, while Brent oil traded near $80.40.
From a big picture point of view, oil traders remain focused on the supply/demand balance in the oil markets. Russia and Saudi Arabia have recently announced production cuts, providing material support to oil prices.
In addition, the previous week was the planet’s hottest on record, driven by the El Nino weather pattern. Hot weather boosts demand for energy, which is bullish for oil prices.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Silver Price Forecast – Silver Threatens Major Breakout
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At current levels, crude oil inventories are approximately 1% above the five-year average for this time of the year. Russia and Saudi Arabia have recently announced production cuts, providing material support to oil prices. In addition, the previous week was the planet’s hottest on record, driven by the El Nino weather pattern. | Domestic oil production decreased from 12.4 million bpd to 12.3 million bpd. Crude oil imports declined by 1.2 million bpd, averaging 5.9 million bpd. In recent weeks, domestic oil production remained in the 12.2 million bpd – 12.4 million bpd range. | Domestic oil production decreased from 12.4 million bpd to 12.3 million bpd. Crude oil imports declined by 1.2 million bpd, averaging 5.9 million bpd. In recent weeks, domestic oil production remained in the 12.2 million bpd – 12.4 million bpd range. | The report indicated that crude inventories increased by 5.9 million barrels from the previous week, compared to analyst consensus of +0.5 million barrels. Crude oil imports declined by 1.2 million bpd, averaging 5.9 million bpd. In recent weeks, domestic oil production remained in the 12.2 million bpd – 12.4 million bpd range. | 9a2a06dc-a7d9-466b-9a69-66e45592c660 |
708866.0 | 2023-07-02 00:00:00 UTC | The Week Ahead – Private Sector PMIs and US Jobs Report in Focus | DBO | https://www.nasdaq.com/articles/the-week-ahead-private-sector-pmis-and-us-jobs-report-in-focus | nan | nan | FXEmpire.com -
On the Macro
It’s another busy week ahead on the economic calendar, with the US Jobs Report and private sector PMI numbers in focus.
For the Dollar:
It is a busy but shortened week ahead on the US economic calendar.
ISM manufacturing PMI and sub-component numbers kickstart the week. While a more marked contraction would be bearish, investors will likely remain focused on the labor market, inflation, and new order sub-components.
On Thursday, the focus will shift to labor market numbers and the services sector. The all-important ISM Non-Manufacturing PMI and sub-components will garner plenty of interest. Slower service sector activity, softer input and output cost pressures, and weaker new orders could reignite fears of a Fed-fueled economic recession.
However, JOLT’s job openings and jobless claims will also need consideration.
On Friday, the US Jobs Report will be the main report of the week. After the inflation numbers last Friday, a solid US Jobs Report would cement a July rate hike and raise the bets on a September move.
Last week, Fed Chair Powell warned the markets of consecutive rate hikes sitting on the table ahead of the inflation figures.
With inflation and the Jobs Report as the focal points, the FOMC meeting minutes will unlikely move the dial on Wednesday. Since the FOMC Press Conference, Fed Chair Powell delivered two days of testimony on Capitol Hill and two speeches at the ECB Central Bank Forum. Powell stuck to the script, dashing hopes of a post-July pause.
However, investors should monitor Fed chatter throughout the week.
For the EUR:
It’s a busy week for the EUR.
Private sector PMIs for Italy and Spain and finalized PMIs for France, Germany, and the Eurozone will be in focus on Monday and Wednesday.
Barring revisions to the French and German PMIs, Italy and the Eurozone PMIs will likely garner more interest. A deeper contraction across the manufacturing sector and slower service sector activity could test the ECB’s commitment to bring inflation to target.
Beyond the headline PMIs, investors should consider the inflation, new orders, and employment sub-components.
While the PMIs will influence, economic indicators from Germany will move the dial. Trade (Tues), factory orders (Thurs), and industrial production (Fri) numbers will give investors a snapshot of the German economy midway through Q2.
Beyond the stats, investors should also consider ECB commentary. Dovish sentiment toward the July move or hawkish references to a September move would influence.
For the Pound:
It is another quiet week ahead for the Pound. Finalized manufacturing and services sector PMIs will draw interest on Monday and Wednesday. We expect revisions to the services PMI and the sub-components to impact the GBP to USD.
Other stats include construction PMI, house price data, and labor productivity numbers. We expect these to have a limited impact on sentiment toward BoE monetary policy.
However, investors should also monitor Bank of England commentary throughout the week. MPC Member Catherine Mann (Fri) is on the calendar to speak this week.
For the Loonie:
It is a quiet week ahead on the economic calendar for the Loonie. However, trade data and employment numbers will move the dial on Thursday and Friday.
Central banks remain committed to taming inflation. Resilient economies have allowed central banks to lift interest rates at an aggressive pace. Strong trade and employment numbers could give the BoC the option to deliver more.
However, sentiment toward crude oil demand and prices will also influence.
Out of Asia
For the Aussie Dollar:
It is a busy week for the Aussie Dollar. Finalized retail sales and trade data will provide direction on Wednesday and Thursday. We expect the trade data to have more impact as investors assess the influence of lackluster economic activity in China on the Australian economy.
While the stats will influence, the RBA monetary policy decision will be the main event for the Aussie. Economists expect the RBA to stand pat next week, with cooler-than-expected inflation numbers shutting the door on the RBA hawks. A hold on interest rates would leave the Rate Statement in focus. The markets will expect a dovish hold.
For the Kiwi Dollar:
It’s a quiet week for the Kiwi Dollar. Building consents and Q2 business confidence numbers will be in focus early in the week.
While building consents will draw interest on Monday, Q2 NZIER Business Confidence numbers should have more influence. A pickup in business confidence would support labor market conditions and business investment.
For the Japanese Yen:
It is another busy week for the Japanese Yen. On Monday, Tankan Survey-based numbers for Q2 will draw interest ahead of service PMI numbers on Wednesday.
We expect both reports to move the dial ahead of household spending figures on Friday. Strong household spending would give the BoJ hawks more reason to push for a monetary policy tweak.
Out of China
It is another quiet week ahead. However, the all-important CAIXIN survey-based PMIs will move the dial on Monday and Wednesday.
A contraction across the manufacturing sector and weaker service sector activity would weigh on riskier assets but reignite hopes of a Beijing stimulus package.
This article was originally posted on FX Empire
More From FXEMPIRE:
Silver Price Forecast – Silver Continues to Consolidate
Crude Oil Price Forecast – Crude Oil Markets Give Up an Early Gain
USD/JPY Forecast – US Dollar Consolidates Against the Japanese Yen
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Slower service sector activity, softer input and output cost pressures, and weaker new orders could reignite fears of a Fed-fueled economic recession. Since the FOMC Press Conference, Fed Chair Powell delivered two days of testimony on Capitol Hill and two speeches at the ECB Central Bank Forum. Trade (Tues), factory orders (Thurs), and industrial production (Fri) numbers will give investors a snapshot of the German economy midway through Q2. | FXEmpire.com - On the Macro It’s another busy week ahead on the economic calendar, with the US Jobs Report and private sector PMI numbers in focus. On Monday, Tankan Survey-based numbers for Q2 will draw interest ahead of service PMI numbers on Wednesday. This article was originally posted on FX Empire More From FXEMPIRE: Silver Price Forecast – Silver Continues to Consolidate Crude Oil Price Forecast – Crude Oil Markets Give Up an Early Gain USD/JPY Forecast – US Dollar Consolidates Against the Japanese Yen The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - On the Macro It’s another busy week ahead on the economic calendar, with the US Jobs Report and private sector PMI numbers in focus. Last week, Fed Chair Powell warned the markets of consecutive rate hikes sitting on the table ahead of the inflation figures. On Monday, Tankan Survey-based numbers for Q2 will draw interest ahead of service PMI numbers on Wednesday. | For the Dollar: It is a busy but shortened week ahead on the US economic calendar. Beyond the headline PMIs, investors should consider the inflation, new orders, and employment sub-components. However, trade data and employment numbers will move the dial on Thursday and Friday. | 516304d2-6db5-4e39-90ec-9ab18661341b |
708867.0 | 2023-06-28 00:00:00 UTC | Oil Rebounds From Session Lows As Crude Inventories Drop | DBO | https://www.nasdaq.com/articles/oil-rebounds-from-session-lows-as-crude-inventories-drop | nan | nan | FXEmpire.com -
Key Insights
Crude inventories decreased by 9.6 million barrels from the previous week.
SPR declined from 350 million barrels to 348.6 million barrels.
Domestic oil production remained unchanged at 12.2 million barrels.
On June 28, EIA released its Weekly Petroleum Status Report. The report showed that crude inventories declined by 9.6 million barrels from the previous week. Analysts expected that crude inventories would drop by 1.75 million barrels.
Total motor gasoline inventories increased by 0.6 million barrels, while distillate fuel inventories grew by 0.1 million barrels. Crude oil imports increased by 418,000 bpd, averaging 6.6 million bpd.
The U.S. continued to sell oil from the Strategic Petroleum Reserve. SPR decreased from 350 million barrels to 348.6 million barrels.
Domestic oil production remained unchanged at 12.2 million bpd. Oil companies are not ready to boost production at current price levels.
WTI oil made an attempt to settle above the $68.50 level after the release of the report. Falling inventories and declining strategic reserves are bullish for oil markets. At the same time, traders remain worried that central banks’ rate hikes will put too much pressure on the world economy and reduce demand for oil.
Meanwhile, Brent oil rebounded towards the $73 level. It should be noted that Brent oil and WTI oil are trading near strong support levels which are located at the yearly lows, so a bullish EIA report can serve as an important positive catalyst for oil markets.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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EUR/USD Forecast – Euro Gives Up an Early Gain
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Gold Price Forecast: Near 4-Month Lows as Stronger Dollar, Powell Remarks Weigh
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories decreased by 9.6 million barrels from the previous week. At the same time, traders remain worried that central banks’ rate hikes will put too much pressure on the world economy and reduce demand for oil. This article was originally posted on FX Empire More From FXEMPIRE: EUR/USD Forecast – Euro Gives Up an Early Gain How to Trade Gold in Times of Market Volatility Gold Price Forecast: Near 4-Month Lows as Stronger Dollar, Powell Remarks Weigh The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production remained unchanged at 12.2 million barrels. Crude oil imports increased by 418,000 bpd, averaging 6.6 million bpd. Domestic oil production remained unchanged at 12.2 million bpd. | SPR declined from 350 million barrels to 348.6 million barrels. Total motor gasoline inventories increased by 0.6 million barrels, while distillate fuel inventories grew by 0.1 million barrels. It should be noted that Brent oil and WTI oil are trading near strong support levels which are located at the yearly lows, so a bullish EIA report can serve as an important positive catalyst for oil markets. | SPR declined from 350 million barrels to 348.6 million barrels. On June 28, EIA released its Weekly Petroleum Status Report. The report showed that crude inventories declined by 9.6 million barrels from the previous week. | 3bd82387-7632-4150-940f-8f380c0145d6 |
708868.0 | 2023-06-22 00:00:00 UTC | WTI Oil Falls Below $70 Despite Bullish EIA Report | DBO | https://www.nasdaq.com/articles/wti-oil-falls-below-%2470-despite-bullish-eia-report | nan | nan | FXEmpire.com -
Key Insights
Crude inventories decreased by 3.8 million barrels from the previous week.
Domestic oil production declined from 12.4 million bpd to 12.2 million bpd.
Strategic Petroleum Reserve fell from 351.7 million to 350 million barrels.
On June 22, EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 3.8 million barrels from the previous week, compared to analyst consensus of +0.33 million barrels.
Total motor gasoline inventories grew by 0.5 million barrels, while distillate fuel inventories increased by 0.4 million barrels. Crude oil imports declined by 220,000 bps from the previous week, averaging 6.2 million bpd.
The EIA report showed that the U.S. continued to sell oil from the Strategic Petroleum Reserve. The SPR decreased from 351.7 million barrels to 350 million barrels.
Domestic oil production declined from 12.4 million bpd to 12.2 million bpd. Domestic oil production has been mostly stable in the 12.2 million – 12.4 million range, and it remains to be seen whether it could grow above 12.5 million bpd at current oil price levels.
WTI oil pulled back below the $70 level after the release of the report, while Brent oil declined below $74.50. Interestingly, the report did not provide support to oil markets, although it included bullish catalysts like falling inventories and declining domestic production.
It looks that traders are focused on the hawkish comments from Jerome Powell and fear that additional rate hikes would put too much pressure on the economy and reduce demand for oil. The surprising rate hike from the BoE, which raised rates by 50 bps, put additional pressure on the price of oil.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Interestingly, the report did not provide support to oil markets, although it included bullish catalysts like falling inventories and declining domestic production. It looks that traders are focused on the hawkish comments from Jerome Powell and fear that additional rate hikes would put too much pressure on the economy and reduce demand for oil. This article was originally posted on FX Empire More From FXEMPIRE: S&P 500 Price Forecast – Stock Markets Continue to Pull Back NASDAQ 100, Dow Jones, S&P 500: Investors Brace for Negative Weekly Results Eurozone PMI Signals Mixed Sector Performance, Manufacturing Weighs Down The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production declined from 12.4 million bpd to 12.2 million bpd. The report indicated that crude inventories declined by 3.8 million barrels from the previous week, compared to analyst consensus of +0.33 million barrels. | Domestic oil production declined from 12.4 million bpd to 12.2 million bpd. The report indicated that crude inventories declined by 3.8 million barrels from the previous week, compared to analyst consensus of +0.33 million barrels. Domestic oil production has been mostly stable in the 12.2 million – 12.4 million range, and it remains to be seen whether it could grow above 12.5 million bpd at current oil price levels. | Strategic Petroleum Reserve fell from 351.7 million to 350 million barrels. The report indicated that crude inventories declined by 3.8 million barrels from the previous week, compared to analyst consensus of +0.33 million barrels. Crude oil imports declined by 220,000 bps from the previous week, averaging 6.2 million bpd. | 2b49549b-695f-453d-a399-b0dff558ac86 |
708869.0 | 2023-06-10 00:00:00 UTC | The Week Ahead – US CPI Report, the Fed, the ECB, and the BoJ in Focus | DBO | https://www.nasdaq.com/articles/the-week-ahead-us-cpi-report-the-fed-the-ecb-and-the-boj-in-focus | nan | nan | FXEmpire.com -
On the Macro
It’s a big week ahead on the economic calendar. While the economic indicators will impact the markets, the Fed interest rate decision, the FOMC Economic Projections, and the FOMC press conference will be the focal point.
For the Dollar:
It is a busy week ahead for the Greenback. The US CPI Report gets the week underway. Sticky inflation could refuel bets on a Wednesday Fed interest rate hike.
On Wednesday, we also expect market sensitivity to wholesale inflation numbers due ahead of the Fed interest rate decision. The markets are expecting the Fed to stand pat on monetary policy. However, the CPI Report and wholesale inflation numbers could change the narrative.
A hold on interest rates would turn the focus to the FOMC Rate Statement, Economic Projections, and Interest Rate Projections.
In the second half of the week, initial jobless claims, retail sales, and Philly Fed Manufacturing Index numbers will move the dial ahead of consumer sentiment figures on Friday.
For the EUR:
It’s also a big week for the EUR.
Finalized euro area inflation figures will draw interest throughout the week. We expect the German (Tues), French CPI (Thurs), and the Eurozone (Fri) numbers to garner the most interest.
However, ZEW Economic Sentiment (Tues) and Eurozone industrial production (Wed), and Eurozone trade data (Thurs) will also move the dial ahead of wage growth figures (Fri).
While the numbers will provide direction, the ECB monetary policy decision and ECB Press Conference will be the key driver. Economists forecast a 25-basis point interest rate hike. Barring a surprise move, the Press Conference will be the focal point, with the markets eyeing economic and inflation projections and any forward guidance.
Beyond the numbers, investors should also consider ECB commentary. Executive Board members Luis de Guindos (Fri), Fabio Panetta (Thurs), Andrea Enria (Tues), and ECB President Christine Lagarde (Thurs) are on the calendar to speak.
For the Pound:
It is a busy week ahead for the Pound. The UK Labor Market Overview will draw interest on Tuesday. While unemployment numbers will need consideration, wage growth will have more impact.
On Wednesday, the monthly GDP report will also move the dial. GDP and manufacturing production numbers will likely be the focal points.
With theeconomic calendaron the heavy side, Bank of England commentary will influence. Bank of England Governor Andrew Bailey (Tues) and Monetary Policy Committee member Sir Jon Cunliffe (Thurs) are on the calendar to speak.
For the Loonie:
It is a quiet week ahead on the economic calendar for the Loonie.
Manufacturing and wholesale sales numbers will draw interest on Thursday and Friday.
While the stats will provide direction, the OPEC monthly report and weekly crude oil inventories will also need consideration.
Out of Asia
For the Aussie Dollar:
It is a relatively quiet week for the Aussie Dollar. However, NAB Business Confidence and employment figures will influence the Tuesday and Thursday sessions, respectively.
We expect the employment numbers to have more impact.
For the Kiwi Dollar:
It’s a busier week for the Kiwi Dollar. Electronic card retail sales figures (Mon) and Q1 GDP numbers (Thurs) will provide direction. Weaker electronic card retail sales and GDP numbers could signal an end to the RBNZ monetary policy tightening cycle.
However, Business PMI numbers for May will also influence on Friday.
For the Japanese Yen:
It is a big week for the Japanese Yen.
While trade data will move the dial on Thursday, the Bank of Japan interest rate decision and press conference will have more impact.
The latest round of economic indicators suggested the need for a policy tweak. However, the Bank of Japan remains committed to ultra-loose. A surprise tweak in forward guidance would sink the USD/JPY on Friday.
Out of China
Investors will need to see more upbeat stats to ease fears of a continued deterioration in the macroeconomic environment.
Fixed asset investment, industrial production, retail sales, and unemployment figures will influence the Thursday session. We expect the industrial production and retail sales numbers to have more impact on market risk sentiment.
However, investors should also consider stimulus chatter that would be a boon for riskier assets.
This article was originally posted on FX Empire
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USD/JPY Forecast – US Dollar Sees Noisy Behavior
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the second half of the week, initial jobless claims, retail sales, and Philly Fed Manufacturing Index numbers will move the dial ahead of consumer sentiment figures on Friday. Bank of England Governor Andrew Bailey (Tues) and Monetary Policy Committee member Sir Jon Cunliffe (Thurs) are on the calendar to speak. This article was originally posted on FX Empire More From FXEMPIRE: USD/JPY Forecast – US Dollar Sees Noisy Behavior Arista Networks Shares See Mega Inflows Natural Gas Forecast: Mild Weather, Maintenance Work Weigh on Prices The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While the economic indicators will impact the markets, the Fed interest rate decision, the FOMC Economic Projections, and the FOMC press conference will be the focal point. However, ZEW Economic Sentiment (Tues) and Eurozone industrial production (Wed), and Eurozone trade data (Thurs) will also move the dial ahead of wage growth figures (Fri). While the numbers will provide direction, the ECB monetary policy decision and ECB Press Conference will be the key driver. | While the economic indicators will impact the markets, the Fed interest rate decision, the FOMC Economic Projections, and the FOMC press conference will be the focal point. On Wednesday, we also expect market sensitivity to wholesale inflation numbers due ahead of the Fed interest rate decision. In the second half of the week, initial jobless claims, retail sales, and Philly Fed Manufacturing Index numbers will move the dial ahead of consumer sentiment figures on Friday. | While the economic indicators will impact the markets, the Fed interest rate decision, the FOMC Economic Projections, and the FOMC press conference will be the focal point. On Wednesday, we also expect market sensitivity to wholesale inflation numbers due ahead of the Fed interest rate decision. Manufacturing and wholesale sales numbers will draw interest on Thursday and Friday. | 4fc35cbd-9e49-46f0-b18e-8a308730dfb4 |
708870.0 | 2023-05-21 00:00:00 UTC | The Week Ahead – Prelim May PMIs, Central Banks, and Inflation in Focus | DBO | https://www.nasdaq.com/articles/the-week-ahead-prelim-may-pmis-central-banks-and-inflation-in-focus | nan | nan | FXEmpire.com -
On the Macro
It’s another busy week ahead on the economic calendar. Prelim private sector PMIs, the FOMC meeting minutes, and US inflation numbers will define monetary policy divergence over the near term. However, US debt ceiling updates will also move the dial.
For the Dollar:
Prelim private sector PMIs for May kickstart the week on Tuesday. While weaker private sector PMI numbers would fuel recessionary jitters, investors should consider the employment, input and output price inflation, and new order sub-components.
On Wednesday, the FOMC meeting minutes will influence ahead of GDP and jobless claims on Thursday.
US Core PCE Price Index, personal spending, and personal income wrap up a busy week. Sticky inflation would fuel bets on a June interest rate hike and remove the chances of an H2 2023 rate cut.
With theeconomic calendaron the busy side, investors should also consider FOMC member chatter.
For the EUR:
It’s a relatively busy week for the EUR. Eurozone consumer confidence numbers for May kickstart the week. An unexpected slump in confidence would weigh on the EUR/USD. Sticky inflation and an elevated interest rate environment could test consumer sentiment and signal a shift in spending plans.
Prelim private sector PMIs for France, Germany, and the Eurozone will provide direction on Tuesday. A more marked contraction in the German manufacturing sector would weigh on the EUR/USD and question the ECB economic outlook following the weak German factory orders and industrial production numbers.
On Wednesday, the German Ifo Business Climate Index and sub-components will draw interest ahead of German Q1 GDP and GfK Consumer Climate numbers on Thursday.
With private sector activity and the German economy in the spotlight, investors should monitor ECB commentary.
With a busiereconomic calendar investors should also consider ECB commentary. Executive Board members Andrea Enria (Tues/Fri), Luis de Guindos (Mon/Tues/Thurs), Frank Elderson (Mon), ECB Chief Economist Philip Lane (Mon/Fri), and ECB President Christine Lagarde (Wed) are on the calendar to speak.
For the Pound:
It is an important week ahead for the Pound. On Tuesday, private sector PMI numbers will draw interest. We expect the Services PMI to have more impact. However, the UK CPI Report will be the more influential report, due on Wednesday ahead of retail sales numbers on Friday.
A pickup in service sector activity, sticky inflation, and an unexpected rise in retail sales would fuel bets on a BoE interest rate hike.
With inflation in the spotlight, investors should also monitor Bank of England commentary.
Andrew Bailey, Huw Pill, Silvana Tenreyro, and Catherine Mann will attend the Treasury Select Hearing on the May Monetary Policy Report.
Bank of England Governor Andrew Bailey (Wed) and Jonathan Haskel (Tues/Thurs) are also on the calendar to deliver speeches.
For the Loonie:
It is a quiet week ahead on the economic calendar for the Loonie.
RMPI numbers will be in focus on Tuesday ahead of manufacturing and wholesale sales figures on Wednesday.
While the stats will draw interest, crude oil inventories and market risk sentiment will likely have more impact.
Out of Asia
For the Aussie Dollar:
It is a quiet week for the Aussie Dollar. Retail sales figures for April will draw interest on Friday. A sharp pickup in spending would question bets on an RBA pause, following the weaker employment numbers last week.
For the Kiwi Dollar:
For the Kiwi Dollar, it is a big week ahead.
Investors must wait until Wednesday to consider retail sales figures for Q1. A marked fall in consumption would ease pressure on the RBNZ to maintain a hawkish monetary policy stance.
While the Q1 numbers will provide direction, the RBNZ monetary policy decision and press conference will be the main event. Investors should be mindful of the April surprise interest rate hike in April.
For the Japanese Yen:
It is a quiet week for the Japanese Yen. Machinery orders for March will draw interest on Monday. An unexpected fall in orders would muddy the waters after the better-than-expected Q1 GDP numbers. Prelim private sector PMIs will influence on Tuesday, with the services PMI likely to garner more interest.
However, Tokyo inflation numbers will also move the dial on Friday. April nationwide inflation numbers raised bets on a tweak to the Bank of Japan’s monetary policy stance. The Friday figures would need to be hotter than expected to put more pressure on the Bank of Japan.
Out of China
There are no economic indicators from China to shift investor sentiment toward the Chinese economy. Wholesale inflation and manufacturing PMIs revealed a weak demand environment, signaling a waning post-COVID economic recovery.
With economic indicators flashing red, the PBoC will be in the spotlight on Monday. However, economists expect the PBoC to leave 1-year and 5-year loan prime rates unchanged at 3.65% and 4.30%, respectively.
This article was originally posted on FX Empire
More From FXEMPIRE:
NASDAQ Index, SP500, Dow Jones Analysis – Stocks Rise On Debt Ceiling Optimism
Gold Price Forecast – Gold Markets Continue to Build a Base
Natural Gas Price Forecast – Natural Gas Markets Pulled Back Slightly
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While weaker private sector PMI numbers would fuel recessionary jitters, investors should consider the employment, input and output price inflation, and new order sub-components. A pickup in service sector activity, sticky inflation, and an unexpected rise in retail sales would fuel bets on a BoE interest rate hike. This article was originally posted on FX Empire More From FXEMPIRE: NASDAQ Index, SP500, Dow Jones Analysis – Stocks Rise On Debt Ceiling Optimism Gold Price Forecast – Gold Markets Continue to Build a Base Natural Gas Price Forecast – Natural Gas Markets Pulled Back Slightly The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Prelim private sector PMIs, the FOMC meeting minutes, and US inflation numbers will define monetary policy divergence over the near term. On Wednesday, the German Ifo Business Climate Index and sub-components will draw interest ahead of German Q1 GDP and GfK Consumer Climate numbers on Thursday. A pickup in service sector activity, sticky inflation, and an unexpected rise in retail sales would fuel bets on a BoE interest rate hike. | While weaker private sector PMI numbers would fuel recessionary jitters, investors should consider the employment, input and output price inflation, and new order sub-components. On Wednesday, the German Ifo Business Climate Index and sub-components will draw interest ahead of German Q1 GDP and GfK Consumer Climate numbers on Thursday. A pickup in service sector activity, sticky inflation, and an unexpected rise in retail sales would fuel bets on a BoE interest rate hike. | FXEmpire.com - On the Macro It’s another busy week ahead on the economic calendar. A pickup in service sector activity, sticky inflation, and an unexpected rise in retail sales would fuel bets on a BoE interest rate hike. Retail sales figures for April will draw interest on Friday. | c5167964-1fd6-43e4-85ec-a6892f8bc333 |
708871.0 | 2023-05-10 00:00:00 UTC | WTI Oil Pulls Back Towards $72 As Crude Inventories Exceed Expectations | DBO | https://www.nasdaq.com/articles/wti-oil-pulls-back-towards-%2472-as-crude-inventories-exceed-expectations | nan | nan | FXEmpire.com -
Key Insights
Crude inventories grew by 3.0 million barrels from the previous week.
The Strategic Petroleum Reserve declined from 364.9 million barrels to 362 million barrels.
WTI oil and Brent oil are down by more than 1.5% in today’s trading session.
On May 10, EIA released its Weekly Petroleum Status report. The report indicated that crude inventories increased by 3.0 million barrels from the previous week, compared to analyst consensus of -0.9 million barrels.
Total motor gasoline inventories decreased by 3.2 million barrels, while distillate fuel inventories declined by 4.2 million barrels. The report showed that crude oil imports averaged 5.6 million bpd, declining by 843,000 bpd from the previous week. Domestic oil production remained unchanged at 12.3 million bpd.
The U.S. continued to sell oil from the Strategic Petroleum Reserve, which declined from 364.9 million barrels to 362 million barrels. The SPR is at multi-decade lows. The low levels of oil reserves may ultimately serve as a material bullish catalyst for oil markets. In the near term, the sales of oil from SPR put some pressure on oil prices.
WTI oil declined below the $72.50 level after the release of the EIA data. Brent oil moved towards the $76.00 level. From a big picture point of view, today’s pullback looks healthy after the strong rebound in the previous trading sessions.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories grew by 3.0 million barrels from the previous week. From a big picture point of view, today’s pullback looks healthy after the strong rebound in the previous trading sessions. This article was originally posted on FX Empire More From FXEMPIRE: S&P 500 Price Forecast – Stock Markets Continue to Trade in a Tight Range U.S. Producer Prices Rise Less Than Expected In April Nasdaq 100, Dow Jones, S&P 500: Dow Lower as Disney Shares Drop 5% Amid Subscriber Setback The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Strategic Petroleum Reserve declined from 364.9 million barrels to 362 million barrels. The report showed that crude oil imports averaged 5.6 million bpd, declining by 843,000 bpd from the previous week. The U.S. continued to sell oil from the Strategic Petroleum Reserve, which declined from 364.9 million barrels to 362 million barrels. | The Strategic Petroleum Reserve declined from 364.9 million barrels to 362 million barrels. The report indicated that crude inventories increased by 3.0 million barrels from the previous week, compared to analyst consensus of -0.9 million barrels. The U.S. continued to sell oil from the Strategic Petroleum Reserve, which declined from 364.9 million barrels to 362 million barrels. | WTI oil and Brent oil are down by more than 1.5% in today’s trading session. The report indicated that crude inventories increased by 3.0 million barrels from the previous week, compared to analyst consensus of -0.9 million barrels. The U.S. continued to sell oil from the Strategic Petroleum Reserve, which declined from 364.9 million barrels to 362 million barrels. | a0c0ef9d-ff2e-497d-a55b-de0c86c33462 |
708872.0 | 2023-04-26 00:00:00 UTC | WTI Oil Rebounds From Session Lows As Crude Inventories Decline | DBO | https://www.nasdaq.com/articles/wti-oil-rebounds-from-session-lows-as-crude-inventories-decline | nan | nan | FXEmpire.com -
Key Insights
Crude inventories decreased by 5.1 million barrels from the previous week.
Domestic oil production declined from 12.3 million bpd to 12.2 million bpd.
U.S. sold 1.1 million barrels of oil from the Strategic Petroleum Reserve.
On April 26, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories declined by 5.1 million barrels from the previous week, compared to analyst consensus of -1.5 million. At current levels, crude oil inventories are about 1% below the five-year average for this time of the year.
Crude oil imports did not play a major role in crude oil inventory dynamics as they increased by just 81,000 bpd and averaged 6.4 million bpd.
Total motor gasoline inventories declined by 2.4 million barrels, while distillate fuel inventoried decreased by 0.6 million barrels from the previous week.
Domestic oil production declined from 12.3 million bpd to 12.2 million bpd. At this point, it looks that domestic oil production will need significant catalysts to move above the 12.3 million bpd level in the near term.
Importantly, the U.S. continued to sell oil from the Strategic Petroleum Reserve, which declined from 368 million barrels to 366.9 million barrels. SPR has not been at these levels since September 1983.
Oil markets rebounded from session lows after the release of the EIA report. The drop in inventories exceeded analyst expectations, which was bullish for oil prices. The decline in domestic oil production served as an additional positive catalyst. WTI oil moved towards the $76.50 level, while Brent oil rebounded above $79.50.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Key Insights Crude inventories decreased by 5.1 million barrels from the previous week. At this point, it looks that domestic oil production will need significant catalysts to move above the 12.3 million bpd level in the near term. This article was originally posted on FX Empire More From FXEMPIRE: Pending Home Sales Miss Expectations, SP500 Tests Session Highs USD/JPY Forecast – US Dollar Gives Up an Early Gain Oil Price Forecast: Stable after Russia Calls Oil Market Balanced The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Domestic oil production declined from 12.3 million bpd to 12.2 million bpd. On April 26, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories declined by 5.1 million barrels from the previous week, compared to analyst consensus of -1.5 million. | Domestic oil production declined from 12.3 million bpd to 12.2 million bpd. Crude oil imports did not play a major role in crude oil inventory dynamics as they increased by just 81,000 bpd and averaged 6.4 million bpd. | On April 26, EIA released its Weekly Petroleum Status Report, which indicated that crude inventories declined by 5.1 million barrels from the previous week, compared to analyst consensus of -1.5 million. Crude oil imports did not play a major role in crude oil inventory dynamics as they increased by just 81,000 bpd and averaged 6.4 million bpd. Importantly, the U.S. continued to sell oil from the Strategic Petroleum Reserve, which declined from 368 million barrels to 366.9 million barrels. | f64d4930-53b8-4a7d-97cc-b04600574d67 |
708873.0 | 2023-03-22 00:00:00 UTC | Oil ETFs Gaining Most Cash Since 2020: Time to Tap? | DBO | https://www.nasdaq.com/articles/oil-etfs-gaining-most-cash-since-2020%3A-time-to-tap | nan | nan | The ProShares Ultra Bloomberg Crude Oil ETF (UCO) last week reported a daily inflow of $158 million, the second-largest amount the fund has pulled in over a single day, according to data going back to 2008, per a Bloomberg article, as quoted on Yahoo Finance. The leveraged oil fund seeks to return twice the daily performance of its underlying index. The fund recorded six successive inflows.
The move does not cause surprise as prices dropped to a 15-month low. First, the global central banks’ rate hikes and the resultant global growth fears and now the banking crisis and its ripple effects caused severe fear about the lower oil demand in the coming days. The fear, in fact, overrode the optimism surrounding the reopening of the Chinese economy which should bolster the oil demand profile.
Several analysts are of the view (per the Bloomberg article) that unless the latest banking crisis deepens further, the drop in oil could be overdone, even if prices are likely to remain volatile. This shows chances of a rebound in oil prices is in the cards, if government and other big banks arrest the collapse in the financial system.
Greenback to Remain Rangebound?
Moreover, wagers on steep Fed rate hikes have cooled down. Per CME Fed Watch Tool, there is a 62% chance of a 25-bp rate hike this week at the time of writing (versus 81.9% chance recorded a month ago), a 38% chance of no rate hike (versus 0% chance recorded a month ago) and 0% chance of a 50-bp rate hike (versus 18.1% chance recorded a month ago).
Actually, there are a few market participants who believe that the Fed may stick to its rate-hike path to keep investors’ confidence intact in the U.S. economy’s financial system. But it is highly unlikely for the Fed to opt for more than a 25-bp rate hike, if it at all happens. A less hawkish Fed and a slowdown in U.S. economic growth may keep the greenback subdued. This should spell good for oil prices as the liquid commodity is priced in the greenback (i.e. the U.S. dollar).
Long-Standing Under-Investment in the Sector
Continued underinvestment in the oil sector will keep global supply tight, per CEO of Aramco, the world’s largest oil company. Spending on the sector is $370 billion to $400 billion, currently in the upstream side, while it was approximately $700 billion in 2014,” Nasser said in a CNBC article. He indicated that China reopening could infuse 2 million barrels more demand (read: What Lies Ahead for Oil & Energy ETFs in the Medium Term?).
According to oil services company Baker Hughes, the active rig count in the United States dropped from a recent high of 627 in early December to 600 in late February. The number of rigs in use as of the end of February is at its lowest since early July 2022, the company reported.
Against this backdrop, below we highlight a few oil ETFs that can tapped at lower price and hold for some time to realize gains.
ETFs in Focus
United States Oil Fund LP (USO)
iPath Pure Beta Crude Oil ETN (OIL)
United States 12 Month Oil Fund LP (USL)
ProShares K-1 Free Crude Oil Strategy ETF (OILK)
Invesco DB Oil Fund (DBO)
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
ProShares Ultra Bloomberg Crude Oil (UCO): ETF Research Reports
ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ETFs in Focus United States Oil Fund LP (USO) iPath Pure Beta Crude Oil ETN (OIL) United States 12 Month Oil Fund LP (USL) ProShares K-1 Free Crude Oil Strategy ETF (OILK) Invesco DB Oil Fund (DBO) Want key ETF info delivered straight to your inbox? Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports ProShares Ultra Bloomberg Crude Oil (UCO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Several analysts are of the view (per the Bloomberg article) that unless the latest banking crisis deepens further, the drop in oil could be overdone, even if prices are likely to remain volatile. | ETFs in Focus United States Oil Fund LP (USO) iPath Pure Beta Crude Oil ETN (OIL) United States 12 Month Oil Fund LP (USL) ProShares K-1 Free Crude Oil Strategy ETF (OILK) Invesco DB Oil Fund (DBO) Want key ETF info delivered straight to your inbox? Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports ProShares Ultra Bloomberg Crude Oil (UCO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Per CME Fed Watch Tool, there is a 62% chance of a 25-bp rate hike this week at the time of writing (versus 81.9% chance recorded a month ago), a 38% chance of no rate hike (versus 0% chance recorded a month ago) and 0% chance of a 50-bp rate hike (versus 18.1% chance recorded a month ago). | ETFs in Focus United States Oil Fund LP (USO) iPath Pure Beta Crude Oil ETN (OIL) United States 12 Month Oil Fund LP (USL) ProShares K-1 Free Crude Oil Strategy ETF (OILK) Invesco DB Oil Fund (DBO) Want key ETF info delivered straight to your inbox? Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports ProShares Ultra Bloomberg Crude Oil (UCO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Per CME Fed Watch Tool, there is a 62% chance of a 25-bp rate hike this week at the time of writing (versus 81.9% chance recorded a month ago), a 38% chance of no rate hike (versus 0% chance recorded a month ago) and 0% chance of a 50-bp rate hike (versus 18.1% chance recorded a month ago). | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports ProShares Ultra Bloomberg Crude Oil (UCO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. ETFs in Focus United States Oil Fund LP (USO) iPath Pure Beta Crude Oil ETN (OIL) United States 12 Month Oil Fund LP (USL) ProShares K-1 Free Crude Oil Strategy ETF (OILK) Invesco DB Oil Fund (DBO) Want key ETF info delivered straight to your inbox? Several analysts are of the view (per the Bloomberg article) that unless the latest banking crisis deepens further, the drop in oil could be overdone, even if prices are likely to remain volatile. | 3cc89b88-6c76-4cdb-8f9a-e533069fd711 |
708874.0 | 2023-02-07 00:00:00 UTC | Can Oil ETFs Jump in 2023 After a Low Start? | DBO | https://www.nasdaq.com/articles/can-oil-etfs-jump-in-2023-after-a-low-start | nan | nan | Oil prices remained under pressure this year on global recessionary fears. United States Oil Fund, LP USO is off 8.1% this year while United States Brent Oil Fund LP BNO has lost about 7.2% past month (as of Feb 3, 2023). Frequent crude stock builds amidst Gulf Coast refinery woes and the slowing down of industrial activity have weighed on the oil prices meaningfully.
The ISM U.S. Manufacturing PMI dropped to 47.4 in January, the lowest since May 2020 at the height of the covid pandemic and below market forecasts of 48. The reading marked the third successive contraction in factory activity.
Plus, electric vehicle behemoth Tesla cut its prices by 13% to 20%. The move will likely be followed by other producers of electric vehicles and that cost advantages for electric vehicles will pressurize oil prices.
Can Oil Bounce Back?
The January 2023 IMF World Economic Outlook Update projects that global growth will decline to 2.9% in 2023 but rise to 3.1% in 2024. The 2023 forecast is 0.2 percentage point higher than predicted in the October 2022 World Economic Outlook but below the historical average of 3.8%. IMF’s higher projection for global growth should augur well for oil prices. Plus, China reopened its economy at the end of the Tiger year. This was a plus for economic activities.
The looming EU restriction on Russian oil products could boost energy prices all over again. Despite Brussels offering a draft version of the product price cap which fixes a limit of $100 per barrel on high-value products of Russian origin (diesel, jet, gasoline) and a $45 per barrel cap on low-value products (fuel oil, naphtha), the EU is still yet to agree on the price cap, per oilprice.com.
Organisation of Petroleum Exporting Countries (OPEC)’s crude output fell last month as the group wanted to keep global markets in balance. Production was down 60,000 barrels a day to 29.12 million a day. OPEC agreed to maintain its planned monthly oil output. OPEC and its allies had in October last year agreed to cut oil output by 2 million barrels per day in November, the deepest reduction by OPEC+ since the 2020 COVID pandemic.
Against this backdrop, below we highlight a few oil ETFs that should be kept track of.
ETFs in Focus
Invesco DB Oil Fund DBO – Down 5.1% Last Week
United States 12 Month Oil Fund LP USL – Down 5.9% Last Week
ProShares K-1 Free Crude Oil Strategy ETF OILK – Down 6.0% Last Week
United States Oil Fund LP USO – Down 6.2% Last Week
iPath Pure Beta Crude Oil ETN OIL – Down 6.4% Last Week
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ETFs in Focus Invesco DB Oil Fund DBO – Down 5.1% Last Week United States 12 Month Oil Fund LP USL – Down 5.9% Last Week ProShares K-1 Free Crude Oil Strategy ETF OILK – Down 6.0% Last Week United States Oil Fund LP USO – Down 6.2% Last Week iPath Pure Beta Crude Oil ETN OIL – Down 6.4% Last Week Want key ETF info delivered straight to your inbox? Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. Frequent crude stock builds amidst Gulf Coast refinery woes and the slowing down of industrial activity have weighed on the oil prices meaningfully. | ETFs in Focus Invesco DB Oil Fund DBO – Down 5.1% Last Week United States 12 Month Oil Fund LP USL – Down 5.9% Last Week ProShares K-1 Free Crude Oil Strategy ETF OILK – Down 6.0% Last Week United States Oil Fund LP USO – Down 6.2% Last Week iPath Pure Beta Crude Oil ETN OIL – Down 6.4% Last Week Want key ETF info delivered straight to your inbox? Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. United States Oil Fund, LP USO is off 8.1% this year while United States Brent Oil Fund LP BNO has lost about 7.2% past month (as of Feb 3, 2023). | ETFs in Focus Invesco DB Oil Fund DBO – Down 5.1% Last Week United States 12 Month Oil Fund LP USL – Down 5.9% Last Week ProShares K-1 Free Crude Oil Strategy ETF OILK – Down 6.0% Last Week United States Oil Fund LP USO – Down 6.2% Last Week iPath Pure Beta Crude Oil ETN OIL – Down 6.4% Last Week Want key ETF info delivered straight to your inbox? Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. United States Oil Fund, LP USO is off 8.1% this year while United States Brent Oil Fund LP BNO has lost about 7.2% past month (as of Feb 3, 2023). | Click to get this free report United States Oil ETF (USO): ETF Research Reports Invesco DB Oil ETF (DBO): ETF Research Reports iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports United States Brent Oil ETF (BNO): ETF Research Reports ProShares K-1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports To read this article on Zacks.com click here. ETFs in Focus Invesco DB Oil Fund DBO – Down 5.1% Last Week United States 12 Month Oil Fund LP USL – Down 5.9% Last Week ProShares K-1 Free Crude Oil Strategy ETF OILK – Down 6.0% Last Week United States Oil Fund LP USO – Down 6.2% Last Week iPath Pure Beta Crude Oil ETN OIL – Down 6.4% Last Week Want key ETF info delivered straight to your inbox? This was a plus for economic activities. | 80aef1e5-25a3-4011-9ad8-060010624c34 |
708875.0 | 2022-12-15 00:00:00 UTC | Creating a BRICS Reserve Currency: A Long-term Project Despite Russia’s De-dollarisation Strategy | DBO | https://www.nasdaq.com/articles/creating-a-brics-reserve-currency%3A-a-long-term-project-despite-russias-de-dollarisation | nan | nan | FXEmpire.com -
Russia and other BRICS members – Brazil, India, China and South Africa – each have different approaches to making changes to establish an alternative non-dollar-denominated international financial system. Russia’s motives are tied to the growing pressure on its capital account following its full-scale war on Ukraine that has led to tougher international sanctions.
For the other BRICS – and countries aspiring to join the group including Egypt, Turkey, Algeria and, more recently, Saudi Arabia – de-dollarisation is a much less urgent goal. India has a closer relationship with the US than with some of the other BRICS members. Brazil and South Africa are less vulnerable to US sanctions.
China and the US remain dependent on each other for trade – China was the US’s third largest trading partner in 2022 January-September after Canada and Mexico – diminishing the logic for third countries to abandon the dollar.
Western measures to isolate Russia also complicate closer co-operation within the BRICS+ countries because of the risk to others of secondary sanctions.
In addition, not all BRICS+ countries have the necessary financial resources or political incentives to invest in the creation of their own non-dollar market infrastructures. Indeed, the most powerful Member States might promote the internationalisation of their own currencies at the expense of others.
Figure 1. Dollar dominates international monetary system; euro a distant second
Currency composition of the international monetary system, %
Source: ECB (The international role of the euro, June 2022), BIS, IMF, SWIFT, Scope Ratings calculations. Notes: The data for foreign-exchange reserves are for the second quarter of 2022; International debt and international deposits data are for the fourth quarter of 2021; Foreign-exchange turnover data as of April 2022; SWIFT data as of July 2022.
Renminbi, Not Rouble, Natural but Limited Beneficiary of De-dollarisation
Any common de-dollarisation strategy would inevitably result in greater use of the Chinese renminbi, making the group more dependent on China’s economic policies and much larger economy, equivalent to almost 60% of BRICS aggregate output. China launched crude oil futures contracts denominated in renminbi in 2018, and trading volumes are at times close to dollar contracts for Brent or West Texas Intermediate crude.
However, the Chinese currency lacks the international acceptance of the dollar or the euro (Figure 1). China’s central bank does not operate a fully floating foreign exchange regime with a lingering tendency to use capital account controls to manage currency flows, even after liberalisation steps are taken.
The dollar remains the dominant currency in almost every area of the current global financial system, with the euro a distant second. It seems unlikely that another currency will overtake the greenback or the euro any time soon.
Challenging dollar hegemony would require a reorganisation of the international financial system, well beyond trade relations, including the roles of Western-led international financial institutions such as the International Monetary Fund and the World Bank.
Strong Longer-term Incentives for Internationalising BRICS+ Currencies
The BRICS+ group has good longer-term economic and political incentives for reducing the dollar’s global dominance. BRICS countries account for 40% of the global population and one-third of the world economy on purchasing-power-parity terms. With Saudi Arabia, BRICS would have two of the largest oil producers, Saudi Arabia and Russia, and two of the largest oil consumers, China and India, increasing the potential to price mutual oil sales in local currencies.
Trade turnover within the BRICS+ is likely to continue growing. China’s foreign trade with other BRICS countries increased by 16% to USD 461bn in the first 10 months of this year compared with the same period in 2021, double the rate of overall growth rate of China’s foreign trade during the same period.
This opens the door for the gradual development of a non-dollar secondary financial system, helping the countries extend their respective spheres of influence. We will likely see efforts to bring BRICS national non-dollar financial infrastructures closer together, to increase mutual trade settled in domestic currencies and to improve co-operation with regional intergovernmental organisations such as the China-led Shanghai Cooperation Organisation.
However, creation of a common BRICS currency that performs the role of a store of value or reserves for central banks of middle-income market economies will remain a long-term challenge.
Figure 2. Risk premium: BRICS CDS spreads significantly wider than reserve-currency issuer countries’
CDS spread (bps), five-year, USD, as of 1 December 2022
Source: Bloomberg, Scope Ratings. *The data for Russia are as of February 1, 2022.
The market perception of risk, judged by sovereign credit default swaps, is significantly higher for BRICS than for reserve-currency issuers (Figure 2) – even excluding Russia, which defaulted on its foreign debt in June. Most BRICS+ countries have good reasons to remain within western financial spheres if only through memberships of international financial institutions.
For a look at all of today’s economic events, check out our economic calendar.
Levon Kameryan is Associate Director in Sovereign and Public Sector ratings at Scope Ratings GmbH.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - Russia and other BRICS members – Brazil, India, China and South Africa – each have different approaches to making changes to establish an alternative non-dollar-denominated international financial system. China’s central bank does not operate a fully floating foreign exchange regime with a lingering tendency to use capital account controls to manage currency flows, even after liberalisation steps are taken. However, creation of a common BRICS currency that performs the role of a store of value or reserves for central banks of middle-income market economies will remain a long-term challenge. | Dollar dominates international monetary system; euro a distant second Currency composition of the international monetary system, % Source: ECB (The international role of the euro, June 2022), BIS, IMF, SWIFT, Scope Ratings calculations. Strong Longer-term Incentives for Internationalising BRICS+ Currencies The BRICS+ group has good longer-term economic and political incentives for reducing the dollar’s global dominance. Risk premium: BRICS CDS spreads significantly wider than reserve-currency issuer countries’ CDS spread (bps), five-year, USD, as of 1 December 2022 Source: Bloomberg, Scope Ratings. | Dollar dominates international monetary system; euro a distant second Currency composition of the international monetary system, % Source: ECB (The international role of the euro, June 2022), BIS, IMF, SWIFT, Scope Ratings calculations. Challenging dollar hegemony would require a reorganisation of the international financial system, well beyond trade relations, including the roles of Western-led international financial institutions such as the International Monetary Fund and the World Bank. China’s foreign trade with other BRICS countries increased by 16% to USD 461bn in the first 10 months of this year compared with the same period in 2021, double the rate of overall growth rate of China’s foreign trade during the same period. | Western measures to isolate Russia also complicate closer co-operation within the BRICS+ countries because of the risk to others of secondary sanctions. In addition, not all BRICS+ countries have the necessary financial resources or political incentives to invest in the creation of their own non-dollar market infrastructures. Strong Longer-term Incentives for Internationalising BRICS+ Currencies The BRICS+ group has good longer-term economic and political incentives for reducing the dollar’s global dominance. | 13fcaab9-7029-4af9-86ff-92ecd2071e61 |
708876.0 | 2022-11-07 00:00:00 UTC | Oil ETFs: Pain or Gain Ahead? | DBO | https://www.nasdaq.com/articles/oil-etfs%3A-pain-or-gain-ahead | nan | nan | Oil prices have been in decent shape lately WTI crude ETF United States Oil Fund LP USO gained 5.4% past month and 7.4% past week. Prices increased considerably as OPEC+ producers agreed on Oct 5 deep output cuts, seeking to spur a recovery in crude prices despite repeated calls from U.S. President Joe Biden’s administration for the group to pump more to lower fuel prices and contain global inflation.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. If this was not enough, rumors spread on social media last week that China (a major energy user) was easing its Covid policies, sending oil prices higher (read: Oil ETFs Up on Steep OPEC+ Output Cuts).
But prices fell on Monday morning as Chinese government officials signaled that the government is sticking to its ongoing zero-Covid policy. Weaker-than-expected Chinese export data and signs of lower demand globally pulled oil prices lower.
What Lies Ahead?
Investors should note that the greenback prices have been subdued of late as many are expecting slower Fed rate hike trail ahead. Since oil is priced in the U.S. dollar, a lower dollar will facilitate oil prices.
An easing of the dollar, an imminent EU ban on Russian oil from December, continued risks of supply due to prolonged supply chain crisis, the OPEC+ cuts in crude supply, falling U.S. crude inventory and a report that the United States and EU are likely to settle for a more loosely policed cap at a higher price than once intended should keep oil prices steady ahead.
The WTI Crude ETF USO has gained 41.3% this year despite China’s zero-Covid policy. Hence, the news of continuation of that policy is likely to be a short-term drag. Over the medium term, oil prices should be in decent shape.
ETFs in Focus
iPath Pure Beta Crude Oil ETN OIL
The underlying S&P GSCI Crude Oil Total Return Index is a sub-index of the S&P GSCI Commodity Index and reflects the returns that are potentially available through an unleveraged investment in the WTI crude oil futures contract. The ETN charges 57 bps in fees.
United States 12 Month Oil Fund LP USL
The underlying WTI Light Sweet Crude Oil Index reflects the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. This is done by tracking the changes in the average of the prices of the 12 futures contracts for WTI oil on the NYMEX, consisting of the near month and the contracts for the following 11 months for a total of 12 consecutive contracts. The fund charges 90 bps in fees.
ProShares K-1 Free Crude Oil Strategy ETF OILK
The underlying Bloomberg Commodity Balanced WTI Crude Oil Index aims to track the performance of three separate contract schedules for WTI crude oil futures, which are reset on a semiannual basis. The fund charges 67 bps in fees.
Invesco DB Oil Fund DBO
The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. The fund charges 77 bps in fees.
United States Oil Fund LP USO
The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. The fund charges 81 bps in fees.
MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN OILU
The underlying MicroSectors Oil & Gas Exploration & Production Index is a total return index that tracks the stock prices of large-capitalization companies that are domiciled and listed in the U.S. and that are active in the exploration and production of oil and gas. The fund charges 95 bps in fees.
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
MicroSectors Oil & Gas E&P 3X Leveraged ETNs (OILU): ETF Research Reports
ProShares K1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports Oil prices have been in decent shape lately WTI crude ETF United States Oil Fund LP USO gained 5.4% past month and 7.4% past week. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports ETFs in Focus iPath Pure Beta Crude Oil ETN OIL The underlying S&P GSCI Crude Oil Total Return Index is a sub-index of the S&P GSCI Commodity Index and reflects the returns that are potentially available through an unleveraged investment in the WTI crude oil futures contract. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports Oil prices have been in decent shape lately WTI crude ETF United States Oil Fund LP USO gained 5.4% past month and 7.4% past week. | 904040bf-7f47-4822-b714-ee7c4b573aab |
708877.0 | 2022-10-06 00:00:00 UTC | Oil ETFs Up on Steep OPEC+ Output Cuts | DBO | https://www.nasdaq.com/articles/oil-etfs-up-on-steep-opec-output-cuts | nan | nan | Oil prices increased considerably on Oct 5 as OPEC+ producers agreed deep output cuts, seeking to spur a recovery in crude prices despite repeated calls from U.S. President Joe Biden’s administration for the group to pump more to lower fuel prices and contain global inflation.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. Energy analysts had mostly expected the group to cut output in the range of 500,000 barrels and two million barrels, as quoted on CNBC.
United States Oil Fund, LP USO added 2.4% on the OPEC+ decision while United States Brent Oil Fund, LP BNO added 2.11%. Oil prices have declined around 30% since early June after reaching multi-year highs in March. The fall has been triggered by growing concerns that global (including the United States) interest rate hikes and Covid-related restrictions in parts of China could slow global economic growth and curtail oil demand. The output cut for November is targeted at reversing this decline.
Notably, the Fed rate hikes have resulted in a higher U.S. dollar. Since most commodities are traded in the U.S. dollar, a rise in it is a headwind to oil prices. Invesco DB US Dollar Index Bullish Fund UUP is up 5.5% in the past three months.
Many analysts believe that OPEC+ wants to see oil prices at $100-level. And oil prices might rally back to that level, given no major COVID-19 outbreak globally and a decent price of greenback. However, occasional lockdowns in China (a major energy user) and continued recession fears might weigh on oil prices occasionally.
Against this backdrop, below we highlight a few oil ETFs that could be tapped for short-term gains.
ETFs in Focus
iPath Pure Beta Crude Oil ETN OIL
The underlying S&P GSCI Crude Oil Total Return Index is a sub-index of the S&P GSCI Commodity Index and reflects the returns that are potentially available through an unleveraged investment in the WTI crude oil futures contract. The ETN charges 57 bps in fees.
United States 12 Month Oil Fund LP (USL)
The underlying WTI Light Sweet Crude Oil Index reflects the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. This is done by tracking the changes in the average of the prices of the 12 futures contracts for WTI oil on the NYMEX, consisting of the near month and the contracts for the following 11 months for a total of 12 consecutive contracts. The fund charges 90 bps in fees.
ProShares K-1 Free Crude Oil Strategy ETF OILK
The underlying Bloomberg Commodity Balanced WTI Crude Oil Index aims to track the performance of three separate contract schedules for WTI crude oil futures, which are reset on a semiannual basis. The fund charges 67 bps in fees.
Invesco DB Oil Fund DBO
The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. The fund charges 77 bps in fees.
United States Oil Fund LP USO
The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. The fund charges 81 bps in fees.
MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN OILU
The underlying MicroSectors Oil & Gas Exploration & Production Index is a total return index that tracks the stock prices of large-capitalization companies that are domiciled and listed in the U.S. and that are active in the exploration and production of oil and gas. The fund charges 95 bps in fees.
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Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports
United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
MicroSectors Oil & Gas E&P 3X Leveraged ETNs (OILU): ETF Research Reports
ProShares K1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about two million barrels per day from November. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil Fund LP (USL) The underlying WTI Light Sweet Crude Oil Index reflects the daily changes of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports ETFs in Focus iPath Pure Beta Crude Oil ETN OIL The underlying S&P GSCI Crude Oil Total Return Index is a sub-index of the S&P GSCI Commodity Index and reflects the returns that are potentially available through an unleveraged investment in the WTI crude oil futures contract. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports Click to get this free report | ea47b3c5-3189-4af6-91ec-4714c2e6ad3e |
708878.0 | 2022-08-26 00:00:00 UTC | Time for Oil & Gas ETFs for 2023? | DBO | https://www.nasdaq.com/articles/time-for-oil-gas-etfs-for-2023 | nan | nan | Oil prices jumped recently after Saudi indicated that OPEC could slash output. The Organization of the Petroleum Exporting Countries plans to lower production to correct the recent oil price decline driven by poor futures market liquidity and recessionary fears. The decision has been taken despite the fact that the oil market is extremely tight. This could boost oil prices again by the beginning of 2023, says one analyst, as quoted on Yahoo Finance.
"Domestically, whether it's oil or it's gas, these companies have very limited incremental capacity at this time," Truist Securities Managing Director of Energy Research Neal Dingmann told Yahoo Finance Live.Saudi state news agency SPA cited Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman as telling Bloomberg that OPEC has the means and flexibility to deal with challenges.
Plus, Europe has been grappling with energy shortages due to damage to a pipeline system bringing oil from Kazakhstan through Russia. U.S natural gas prices rallied this week to new 14-year highs over reserve concerns and the energy crisis in Europe. Heat waves in Europe also boosted the cooling demand.
Oil prices recently remained subdued amid worries of a global recessionary fears and the prospects of a nuclear deal with Iran. Truist Securities Managing Director of Energy Research Neal Dingmann believes oil could fall to about $80 per barrel this year, before jumping to $110 in early next year, as quoted on Yahoo Finance.
Against this backdrop, investors must be interested in keeping track of oil and energy ETFs. We highlight some ETFs for them below.
ETFs in Focus
United States Oil Fund LP USO
The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, OK. The fund charges 81 bps in fees.
Invesco DB Oil Fund DBO
The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. The fund charges 77 bps in fees.
United States Natural Gas Fund LP UNG
The Natural Gas Price Index is the futures contract on natural gas as traded on the NYMEX. The expense ratio of UNG is 1.11% annually.
Invesco DB Energy Fund DBE
The DBIQ Optimum Yield Energy Index Excess Return Index is a rules-based index composed of futures contracts on some of the most heavily traded energy commodities in the world: Light Sweet Crude Oil (WTI); Heating Oil; Brent Crude Oil; RBOB Gasoline; & Natural Gas. It is intended to reflect the performance of the energy sector. The fund charges 77 bps in fees.
United States Brent Oil Fund LP BNO
The Brent crude oil looks to track the daily changes in percentage terms of the spot price of Brent crude oil. The fund’s expense ratio is 1.02% annually.
United States Gasoline Fund LP UGA
The underlying Gasoline Price Index looks to reflect the changes in the price of gasoline, as measured by the price of the contract on unleaded gasoline for delivery to the New York harbor, traded on the NYMEX that is the near month to expire, except when the near contract is within two weeks of expiration, in which case it will be measured by the contract that is the next month contract to expire. The expense ratio is 0.90% annually.
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
United States Gasoline ETF (UGA): ETF Research Reports
Invesco DB Energy ETF (DBE): ETF Research Reports
United States Natural Gas ETF (UNG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports The Organization of the Petroleum Exporting Countries plans to lower production to correct the recent oil price decline driven by poor futures market liquidity and recessionary fears. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports ETFs in Focus United States Oil Fund LP USO The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, OK. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports ETFs in Focus United States Oil Fund LP USO The underlying West Texas Intermediate Light Sweet Crude Oil Index looks to reflect the daily changes of the spot price of light, sweet crude oil delivered to Cushing, OK. | Invesco DB Oil Fund DBO The underlying DBIQ Optimum Yield Crude Oil Index Excess Return Index is a rules-based index composed of futures contracts on Light Sweet Crude Oil (WTI) and is intended to reflect the performance of crude oil. Invesco DB Oil ETF (DBO): ETF Research Reports United States Oil ETF (USO): ETF Research Reports | 98f0e5e1-cd41-49ee-b1ba-49fea902b5cc |
708879.0 | 2022-07-29 00:00:00 UTC | High Energy Prices Lead to Record Profits For Oil Companies | DBO | https://www.nasdaq.com/articles/high-energy-prices-lead-to-record-profits-for-oil-companies | nan | nan | High energy prices and profitable oil-refining margins have led oil giants and Shell PLC to see record profits. Second-quarter profits for Exxon Mobil Corp. rose to $17.9 billion, while Chevron Corp. posted a profit of $11.6 billion. Shell PLC, meanwhile, reported record quarterly profits of $16.7 billion.
“The companies’ banner profits mark a significant turnaround for an industry that hemorrhaged cash and saw scores of companies file for bankruptcy following the worldwide outbreak of COVID-19 in 2020,” according to the Wall Street Journal. “Exxon and Chevron posted historic losses that year, and Exxon got booted from the Dow Jones Industrial Average while energy sunk to less than 2.5% of the S&P 500.”
Oil and gas shares outperformed the market this year, with the S&P 500 Energy index up about 35% since the start of 2022, versus a 15% drop for the broader index.
While the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ) don’t hold the above-mentioned stocks, this news is still bound to have a huge impact on these energy-focused funds.
DBO provides an opportunity to get exposure to the current upside in oil prices. Additionally, investors don’t hold direct exposure to the heavy price volatility of holding positions directly in the commodity itself.
DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in the market value of crude oil. The single index commodity consists of light, sweet crude oil. The fund invests in futures contracts to track its corresponding index.
PXE, meanwhile, seeks to track the investment results of the Dynamic Energy Exploration & Production Intellidex Index. The fund invests at least 90% of its total assets in the securities that comprise the underlying index.
According to VettaFi, PXE “offers exposure to the exploration and production sub-sector of the domestic energy market, making it a potentially useful tool for those looking to target stocks of companies responsible for discovering and accessing new deposits of oil and gas.”
Finally, PXJ seeks to track the investment results of the Dynamic Oil Services Intellidex Index. The exchange traded fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
The underlying index that PXJ tracks is composed of common stocks of U.S. companies that assist in the production, processing, and distribution of oil and gas.
For more news, information, and strategy, visit the Innovative ETFs Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ) don’t hold the above-mentioned stocks, this news is still bound to have a huge impact on these energy-focused funds. DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in the market value of crude oil. | While the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ) don’t hold the above-mentioned stocks, this news is still bound to have a huge impact on these energy-focused funds. DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in the market value of crude oil. | While the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ) don’t hold the above-mentioned stocks, this news is still bound to have a huge impact on these energy-focused funds. DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in the market value of crude oil. | While the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ) don’t hold the above-mentioned stocks, this news is still bound to have a huge impact on these energy-focused funds. DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in the market value of crude oil. | 8fdf1313-a256-47df-9f76-db3d9a3461fe |
708880.0 | 2022-06-06 00:00:00 UTC | 5 ETFs to Tap Oil Price Strength | DBO | https://www.nasdaq.com/articles/5-etfs-to-tap-oil-price-strength | nan | nan | Oil resumed its strength lately and reached its highest levels since March. Brent oil hit $120 per barrel after Saudi Arabia raised crude prices for July, indicating a very tight supply. The rally came despite OPEC+ agreed to accelerate its output increases over the next two months.
Investors seeking to tap the oil rally could bet on the ETFs that are directly linked to the futures contracts. United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO, United States 12 Month Oil Fund USL and iPath Pure Beta Crude Oil ETN OIL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months (read: 10 Top-Performing Oil-Energy ETFs of May).
The easing of COVID-19 restrictions in China and the European Union agreement to ban 90% of the Russian crude by the end of the year added to the strength. The dual news will continue to bolster demand and exacerbate worries over the already tightening supply. Additionally, an inflationary environment in many countries as well as the prospect of rising demand from the start of the upcoming U.S. summer driving season caused a spike in oil price.
Oil price has been on a rising trend this year so far due to supply disruptions and unprecedented demand. The geopolitical tensions between Russia and Ukraine and in the Middle East heightened concerns over tight energy supply amid increasing demand.
United States Oil Fund (USO)
United States Oil Fund is the most popular ETF in the oil space with an AUM of $2.9 billion and an average daily volume of 5 million shares. USO seeks an average daily percentage change in its net asset value for any period of 30 successive valuation days, to be within plus/minus 10% of the average daily percentage change in the price of the Benchmark Oil Futures Contract over the same period.
United States Oil Fund has an expense ratio of 0.81%
United States Brent Oil Fund (BNO)
United States Brent Oil Fund provides direct exposure to the spot price of Brent crude oil on a daily basis through futures contracts. BNO invests primarily in listed crude oil futures contracts and other oil-related futures contracts, and may invest in forwards and swap contracts.
United States Brent Oil Fund amassed $316.1 million in its asset base and charges 1.02% as annual fees and expenses. Volume is good as it exchanges 1.4 million shares a day on average (read: 5 Leveraged Oil-Energy ETFs Up More than 80% YTD).
Invesco DB Oil Fund (DBO)
Invesco DB Oil Fund provides exposure to crude oil through WTI futures contracts and follows the DBIQ Optimum Yield Crude Oil Index Excess Return. The Index is a rules-based index composed of futures contracts on WTI.
Invesco DB Oil Fund has an AUM of $540.2 million and charges 77 bps of annual fees. DBO trades in an average daily volume of 1.1 million shares.
United States 12 Month Oil Fund (USL)
United States 12 Month Oil Fund provides investors with exposure to the daily price movements of West Texas Intermediate’s light, sweet crude oil. USL's benchmark is the near-month futures contract to expire and the contracts for the following 11 months for a total of 12 consecutive months. If the near-month futures contract is within two weeks of expiration, the benchmark will be the next-month contract to expire and the contracts for the following 11 months.
United States 12 Month Oil Fund is unpopular and less liquid with an AUM of $143.7 million and an expense ratio of 0.90%. USL trades in an average daily volume of 48,000 shares.
iPath Pure Beta Crude Oil ETN (OIL)
iPath Pure Beta Crude Oil ETN is designed to provide exposure to the Barclays WTI Crude Oil Pure Beta TR Index. OIL accumulated $139.7 million and trades in a volume of 75,000 shares a day.
The fund charges 57 bps of annual fees.
Backwardation: Friend of Futures Market
While the above products provide the easiest way to gain a direct exposure to the oil commodity, it have serious consequences on the profit (or loss) incurred by investors. This is especially true as these ETFs and ETNs need to roll from one futures contract to another to avoid physical delivery and is thus susceptible to the roll yield. Roll yield is positive when the futures market is in backwardation (the front-month contract is higher than the next-month contract) and negative when the futures market is in contango (the front-month contract is lower than the next-month contract).
Currently, the futures market reveals that crude oil is in prolonged backwardation, which is bullish for the commodity and the oil ETFs. This signals that the oil market is tightening and demand is robust, paving the way for an oil rally. If the front-month contracts were more expensive than the next month, investors would enjoy profits on every roll, thereby maximizing their total returns. A market in backwardation also signifies that demand exceeds supply and shoots up oil prices. This trend is likely to persist, at least in the near term, acting as the biggest catalyst for the oil (read: Can Energy ETFs Stay Hot?).
As a result, contango does not look like an obstacle for investors over the next few months.
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO, United States 12 Month Oil Fund USL and iPath Pure Beta Crude Oil ETN OIL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months (read: 10 Top-Performing Oil-Energy ETFs of May). Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 1.1 million shares. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO, United States 12 Month Oil Fund USL and iPath Pure Beta Crude Oil ETN OIL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months (read: 10 Top-Performing Oil-Energy ETFs of May). Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 1.1 million shares. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO, United States 12 Month Oil Fund USL and iPath Pure Beta Crude Oil ETN OIL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months (read: 10 Top-Performing Oil-Energy ETFs of May). Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 1.1 million shares. | United States Oil Fund USO, United States Brent Oil Fund BNO, Invesco DB Oil Fund DBO, United States 12 Month Oil Fund USL and iPath Pure Beta Crude Oil ETN OIL are popular oil ETFs that could be interesting plays to directly deal with in the futures market in the coming months (read: 10 Top-Performing Oil-Energy ETFs of May). Invesco DB Oil Fund (DBO) DBO trades in an average daily volume of 1.1 million shares. | a5f28606-7d36-435e-9345-8c10b345f13b |
708881.0 | 2022-05-31 00:00:00 UTC | Oil ETFs to Rally on EU's Latest Ban on Russian Crude Imports | DBO | https://www.nasdaq.com/articles/oil-etfs-to-rally-on-eus-latest-ban-on-russian-crude-imports | nan | nan | Oil prices have been surging amid the Russia-Ukraine geopolitical crisis. The European Union leaders finally agreed on an embargo to restrict 90% of Russian crude by the end of 2022. The sanctions will immediately impose a ban on 75% of the Russian oil imports.
The U.S. crude futures for July increased 3.8% to $119.39 per barrel during Asia hours on May 31 (per a CNBC article). Also, the global benchmark Brent crude oil has risen 1.9% to $124.02 per barrel on the same day.
According to the statement issued by the European Council on May 31, “The European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline.” This was reported in a CNBC article. Per the same article, this ban will be part of the sixth sanction package imposed by the European Union in response to Russia’s attack on Ukraine.
The European Commission president Ursula von der Leyen informed that the temporary exemption was granted to make sure that the countries like Hungary, Slovakia and the Czech Republic, which are connected to the southern side of the pipeline where it is difficult to arrange a replacement, get access to oil (per a CNBC article).
Increasing Demand in U.S and China
The EU’s oil embargo can induce a sharp rally in oil prices to increase the burden on the already tight oil supplies. U.S. gasoline demand is also soon going to shoot up as the Memorial Day weekend marks the beginning of the U.S. summer driving season. According to SPI Asset Management managing partner Stephen Innes, "Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak U.S. driving season. Refineries are typically in ramp-up mode to feed U.S. drivers' unquenching thirst at the pump," as mentioned in a Reuters article.
It is also worth noting here that Russia stands as the world’s second-largest oil producer. European refineries procure most of their crude oil supplies from Russia. Notably, the country also provides about two-fifths of its natural gas supply to Europe. In fact, it emerged as the largest natural gas and oil supplier to the European Union in 2021.
The end of a two-month-long COVID-19 lockdown in China’s biggest financial hub, Shanghai, will also bump up oil demand only to worsen the already tight supply-demand conditions in the oil market.
The Organization of the Petroleum Exporting Countries and allies including Russia, popularly known as OPEC+, is unable to support the asymmetrical supply-demand in the crude oil market by adhering to its original plan of an increase of 432,000 barrels a day for July, per a Reuters article.
Oil ETFs That Can Rally
Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here):
United States Brent Oil Fund BNO — up 66.7% year to date
The fund tracks the daily price movement of Brent crude oil (read: Top-Performing ETF Areas of Last Week).
AUM: $295.6 million
Total Expense Ratio: 1.02%
United States Oil Fund USO — up 61.3%
The United States Oil Fund’s investment objective is for the daily changes, in percentage terms, of its shares’ net asset value (NAV) to reflect the daily changes, in percentage terms, of the spot price of light sweet crude oil delivered to Cushing, OK, as measured by the daily changes in the Benchmark Oil Futures Contract (read: 4 Top-Ranked Sectors & Its ETFs to Play Amid Market Slump).
AUM: $2.80 billion
Total Expense Ratio: 0.81%
United States 12 Month Oil Fund USL — up 50.8%
The fund replicates with possible accuracy, the price movements of West Texas Intermediate light, sweet crude oil.
AUM: $144 million
Total Expense Ratio: 0.90%
Invesco DB Oil Fund DBO — up 47.1%
The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses (read: Worried About Stagflation? Try the New ETF STGF).
AUM: $533 million
Total Expense Ratio: 0.77%
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AUM: $144 million Total Expense Ratio: 0.90% Invesco DB Oil Fund DBO — up 47.1% The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses (read: Worried About Stagflation? Invesco DB Oil ETF (DBO): ETF Research Reports Per the same article, this ban will be part of the sixth sanction package imposed by the European Union in response to Russia’s attack on Ukraine. | AUM: $144 million Total Expense Ratio: 0.90% Invesco DB Oil Fund DBO — up 47.1% The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses (read: Worried About Stagflation? Invesco DB Oil ETF (DBO): ETF Research Reports According to the statement issued by the European Council on May 31, “The European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline.” This was reported in a CNBC article. | AUM: $144 million Total Expense Ratio: 0.90% Invesco DB Oil Fund DBO — up 47.1% The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses (read: Worried About Stagflation? Invesco DB Oil ETF (DBO): ETF Research Reports According to the statement issued by the European Council on May 31, “The European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline.” This was reported in a CNBC article. | AUM: $144 million Total Expense Ratio: 0.90% Invesco DB Oil Fund DBO — up 47.1% The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses (read: Worried About Stagflation? Invesco DB Oil ETF (DBO): ETF Research Reports European refineries procure most of their crude oil supplies from Russia. | 7374bf04-2b1d-4011-a02d-ea1284611bdd |
708882.0 | 2022-05-21 00:00:00 UTC | The Week Ahead – Private Sector PMIs and US Inflation in Focus | DBO | https://www.nasdaq.com/articles/the-week-ahead-private-sector-pmis-and-us-inflation-in-focus | nan | nan | FXEmpire.com -
On the Macro
It is a quiet week ahead on the economic calendar, with stats 41 due out through the week ending May 27. In the week prior, 59 stats were in focus.
For the Dollar:
Prelim private sector PMIs for May kick things off. With markets fretting over the risk of a recession, expect the services PMI to be the key.
On Wednesday, core durable goods orders will draw interest ahead of GDP and jobless claims figures on Thursday.
At the end of the week, core PCE price index and personal spending figures will also have a material impact on the dollar and market risk sentiment.
From the Fed, the FOMC meeting minutes should provide few surprises following recent Fed Chair Powell speeches.
In the week ending May 20, 2022, the Dollar Spot Index slid by 1.35% to end the week at 103.150. In the week prior, the Index rose by 0.87% to 104.563.
For the EUR:
On Monday, Germany’s Ifo business climate index will draw interest ahead of private sector PMI numbers on Tuesday.
While the markets may forgive a weaker business climate index, weak manufacturing PMIs will test support for the EUR.
On Wednesday, the German economy will be back in focus with GDP and consumer sentiment to wrap up the week.
For the week, the EUR rallied by 1.46% to $1.0564. In the previous week, the EUR slid by 1.32% to $1.0412.
For the Pound:
It is a quiet week ahead.
Prelim private sector PMIs for May will be in focus on Tuesday. With the markets looking to second guess the Bank of England’s interest rate trajectory, expect the Services PMI to have the greater influence.
In the week, the Pound rallied by 1.78% to end the week at $1.2480. The Pound fell by 0.70% to $1.2262 in the week prior.
For the Loonie:
On Thursday, retail sales will provide the Loonie with direction.
Away from theeconomic calendar crude oil prices and market risk sentiment will remain key.
In the week ending May 20, the Loonie rose by 0.69 to C$1.2840 against the greenback. The Loonie fell by 0.42% to C$1.2929 in the week prior.
From the Asia Pacific
For the Aussie Dollar:
Private new CAPEX numbers for Q1 will set the tone ahead of all-important retail sales figures on Friday.
Expect the retail sales numbers to be the key driver.
In the week, the Aussie Dollar rose by 1.44% to $0.7040.
For the Kiwi Dollar:
On Tuesday, retail sales will be in focus ahead of the RBNZ monetary policy decision on Wednesday. The markets are expecting a 50-basis point rate hike. Impressive retail sales figures could support a bigger move.
The Kiwi Dollar rallied by 1.88% to end the week at $0.6394.
For the Japanese Yen:
It’s a quiet week, with economic data limited to private sector PMIs and Tokyo inflation figures due out on Friday.
The PMIs will provide the markets with a look at how the Japanese economy is affected by the war in Ukraine and COVID-19 in China.
While inflation is key for the BoJ, May figures are unlikely to shift the Bank of Japan’s stance on interest rates. Concerns over China’s lockdown measures and the war in Ukraine remain the central bank’s main consideration near-term.
The Japanese Yen rose by 1.04% to end the week at ¥127.88 against the dollar. In the week prior, the Yen ended the week up 1.03% to ¥129.22.
Out of China
There are no material stats due out of China to provide the markets with direction.
The lack of stats will leave the markets in the hands of COVID-19 news updates and chatter from Beijing.
In the week ending May 20, the Chinese Yuan rose by 1.42% to CNY6.6930. The Yuan slid by 1.84% to CNY6.7893 in the week prior.
Geo-Politics
Russia and Ukraine will remain the area of focus in the week ahead.
This article was originally posted on FX Empire
More From FXEMPIRE:
GBP/USD Price Forecast – The British Pound Rallies to Kick Off the Week
U.S. Dollar Index (DX) Futures Technical Analysis – Bulls Hoping for Break into 105.470 – 105.155 Value Zone
Gold Price Forecast – Gold Markets Give Up an Early Gain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At the end of the week, core PCE price index and personal spending figures will also have a material impact on the dollar and market risk sentiment. For the Japanese Yen: It’s a quiet week, with economic data limited to private sector PMIs and Tokyo inflation figures due out on Friday. This article was originally posted on FX Empire More From FXEMPIRE: GBP/USD Price Forecast – The British Pound Rallies to Kick Off the Week U.S. Dollar Index (DX) Futures Technical Analysis – Bulls Hoping for Break into 105.470 – 105.155 Value Zone Gold Price Forecast – Gold Markets Give Up an Early Gain The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | FXEmpire.com - On the Macro It is a quiet week ahead on the economic calendar, with stats 41 due out through the week ending May 27. For the EUR: On Monday, Germany’s Ifo business climate index will draw interest ahead of private sector PMI numbers on Tuesday. For the Japanese Yen: It’s a quiet week, with economic data limited to private sector PMIs and Tokyo inflation figures due out on Friday. | FXEmpire.com - On the Macro It is a quiet week ahead on the economic calendar, with stats 41 due out through the week ending May 27. In the week ending May 20, 2022, the Dollar Spot Index slid by 1.35% to end the week at 103.150. In the week prior, the Yen ended the week up 1.03% to ¥129.22. | In the week prior, 59 stats were in focus. For the EUR: On Monday, Germany’s Ifo business climate index will draw interest ahead of private sector PMI numbers on Tuesday. In the week, the Pound rallied by 1.78% to end the week at $1.2480. | cc0e157b-0aba-4d5e-aa58-06b199e89b68 |
708883.0 | 2022-05-20 00:00:00 UTC | The Weekly Wrap – A Six Week Winning Streak Ends for the Dollar | DBO | https://www.nasdaq.com/articles/the-weekly-wrap-a-six-week-winning-streak-ends-for-the-dollar | nan | nan | FXEmpire.com -
The Stats
It was a busy week on the economic calendar for the week ending May 20, 2022.
A total of 60 stats were monitored, following 45 stats in the week prior.
Of the 60 stats, 32 beat forecasts, with 20 economic indicators falling short of forecast. Eight stats were in line with forecasts.
Looking at the numbers, 25 of the stats reflected an upward trend. Of the remaining 35 stats, 34 stats were weaker.
Out of the US
Early in the week, retail sales and industrial production figures eased fears of an economic meltdown.
In April, retail sales jumped 2.5%, with industrial production rising by 1.1%.
On Thursday, jobless claims and Philly Fed Manufacturing numbers disappointed, however.
Initial jobless claims rose from 197k to 218k, in the week ending May 13, with the Philly Fed Manufacturing Index falling from 17.6 to 2.6 in May.
While the stats were mixed, Fed Chair Powell tested investor sentiment on Tuesday.
After providing the markets with assurances about larger rate hikes in the week prior, the Fed Chair talked of a willingness to move policy beyond neutral to curb inflation. Powell also discussed some possible pain ahead for the labor market while acknowledging that the Fed should have lifted rates sooner.
In the week ending May 20, 2022, the Dollar Spot Index slid by 1.35% to end the week at 103.150. In the week prior, the Index rose by 0.87% to 104.563.
Out of the UK
Employment and wage growth figures impressed, with average earnings + bonus up 7% in March versus a forecasted 5.4%.
The unemployment rate slipped from 3.8% to 3.7%, with claimant counts supporting a positive outlook for April. In April, claimant counts fell by 56.9k, following a 46.9k decline in March.
Inflation figures tested support for the Pound mid-week, however, with another spike raising concerns over the economic outlook.
The annual rate of inflation accelerated from 7.0% to 9.0% in April, falling just shy of a forecasted 9.1%.
On Friday, retail sales beat forecasts to deliver Pound support following a Dollar sell-off on Thursday.
In April, retail sales jumped by 1.4%, reversing a 1.2% slide from March.
In the week, the Pound rallied by 1.78% to end the week at $1.2480. The Pound fell by 0.70% to $1.2262 in the week prior.
The FTSE100 ended the week down 0.38%, reversing a 0.48% gain from the previous week.
Out of the Eurozone
Early in the week, trade data and GDP numbers delivered mixed results.
In March, the Eurozone’s trade deficit widened from €7.6bn to €16.4bn, with the war in Ukraine continuing to hit crude oil prices.
Second estimate GDP numbers for the Eurozone were EUR positive, however. In Q1, the economy grew by 0.3%, up from a first estimate of 0.2%. Year on year, the economy expanded by 5.1%, up from a first estimate of 5.0%.
Finalized inflation figures for the Eurozone had a muted impact mid-week, with the annual rate of inflation easing from 7.5% to 7.4%.
At the end of the week, however, German producer prices for industrial goods surged by 33.5% compared with April 2021, the highest increase on record.
From the EU, downward revisions to economic forecasts failed to sink the EUR while weighing on the European equity markets.
For 2022, the European Commission forecasts growth of 2.7% and 2.3% for 2023. While the Commission revised both downwards, the 2022 revision was most marked.
In February, the European Commission forecast growth of 4.0% for 2022 and 2.7% for 2023.
From the ECB, the monetary policy meeting minutes provided few surprises, with the talk of summer rate hikes in line with market expectations.
For the week, the EUR rallied by 1.46% to $1.0564. In the previous week, the EUR slid by 1.32% to $1.0412.
The CAC40 slid by 1.22%, with the EuroStoxx600 and the DAX seeing losses of 0.55% and 0.33%, respectively.
For the Loonie
The key stats of the week were inflation figures for April, which were Loonie positive.
In April, Canada’s annual rate of core inflation picked up from 5.5% to 5.7% versus a forecasted 5.4%.
Other stats in the week included manufacturing and wholesale sales and RMPI numbers that had a muted impact on the Loonie.
A pickup in crude oil prices also delivered support.
In the week ending May 20, the Loonie rose by 0.69 to C$1.2840 against the greenback. The Loonie fell by 0.42% to C$1.2929 in the week prior.
Elsewhere
It was a bullish week for the Aussie Dollar and the Kiwi Dollar.
The Aussie Dollar rose by 1.44% to $0.7040, with the Kiwi Dollar rallying by 1.88% to end the week at $0.6394.
For the Aussie Dollar
Wage growth and employment numbers drew interest in the week, with the stats Aussie dollar positive.
In Q1, wages grew by 0.8%, following a 0.7% rise in Q4.
Full employment jumped by 92.4k in April to leave the unemployment rate at 3.9%. Employment increased by just 4.0k, with part-time employment a drag.
For the Kiwi Dollar
A quiet week on the data front left wholesale inflation and trade data in focus.
The stats were Kiwi dollar positive. In Q1, the PPI Input Index jumped by 3.6%, following a 1.2% rise in the quarter prior.
In April, New Zealand’s trade balance rose from a NZ$581 million deficit to a NZ$584 million surplus, with exports to Japan leading the way.
For the Japanese Yen
It was a busy week on the economic front, with GDP, trade, and inflation figures drawing interest.
The stats were skewed to the negative, with weaker GDP and trade data confirming the Bank of Japan’s concerns.
In Q1, the economy contracted by 0.2% and shrank by 1.0%, year on year.
The trade deficit widened from ¥414.1bn to ¥839.2bn in April, while the annual rate of inflation jumped from 0.8% to 2.1%.
With economic uncertainty likely to linger, the pickup in inflation is unlikely to force the BoJ’s hand just yet.
The Japanese Yen rose by 1.04% to end the week at ¥127.88 against the dollar. In the week prior, the Yen ended the week up 1.03% to ¥129.22.
Out of China
Economic data disappointed in the week and raised market fears of a global economic recession.
In April, industrial production fell by 2.9% year on year versus a forecasted 0.4% rise. Production had risen by 5.0% in March.
Fixed asset investments also continued a downward trend.
Assurances of government support, however, limited the damage.
In the week ending May 20, the Chinese Yuan rose by 1.42% to CNY6.6930. The Yuan slid by 1.84% to CNY6.7893 in the week prior.
The Hang Seng Index ended the week up 4.11%, with the CSI300 rising by 2.23%.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After providing the markets with assurances about larger rate hikes in the week prior, the Fed Chair talked of a willingness to move policy beyond neutral to curb inflation. From the ECB, the monetary policy meeting minutes provided few surprises, with the talk of summer rate hikes in line with market expectations. This article was originally posted on FX Empire More From FXEMPIRE: Crypto Price Analysis July 19: NEXO, LDO, WAVES, LEO, MATIC U.S. Dollar Index (DX) Futures Technical Analysis – Steep Break Puts 105.470 – 105.155 Value Zone on Radar Dogecoin and Shiba Inu Remain Lacklustre Despite Bullish Cues The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Thursday, jobless claims and Philly Fed Manufacturing numbers disappointed, however. Out of the Eurozone Early in the week, trade data and GDP numbers delivered mixed results. For the Aussie Dollar Wage growth and employment numbers drew interest in the week, with the stats Aussie dollar positive. | FXEmpire.com - The Stats It was a busy week on the economic calendar for the week ending May 20, 2022. In the week ending May 20, 2022, the Dollar Spot Index slid by 1.35% to end the week at 103.150. In the week prior, the Yen ended the week up 1.03% to ¥129.22. | In the week ending May 20, 2022, the Dollar Spot Index slid by 1.35% to end the week at 103.150. Second estimate GDP numbers for the Eurozone were EUR positive, however. In April, industrial production fell by 2.9% year on year versus a forecasted 0.4% rise. | 19170696-0942-42e3-8354-956d9df00f7e |
708884.0 | 2022-05-10 00:00:00 UTC | Worried About Stagflation? Try the New ETF STGF | DBO | https://www.nasdaq.com/articles/worried-about-stagflation-try-the-new-etf-stgf | nan | nan | Red-hot inflation reading (due to COVID-19-and-war-induced supply chain issues) has been hitting headlines across the developed markets lately. Theglobal marketis now severely worried about stagflation.
Stagflation arises when high inflation hits the economy and the age-old policy treatment of inflationary pressure – hiking interest rates – goes against economic growth. In short, higher inflation combined with falling growth results in stagflation.
The annual inflation rate in the United States accelerated to 8.5% in March 2022, the highest since December of 1981 from 7.9% in February and compared with market forecasts of 8.4%. To tame it, the Federal Reserve enacted the biggest interest rate hike (worth 50 basis points) in 22 years in May followed by a 25-bp rate hike in March. The Fed has hinted at further rate hikes this year.
With higher rates, banks will make it pricier for households, businesses and governments to borrow. This in turn will lower demand for goods and services, will cut activities in the economy and help ease price inflation, but lowers GDP growth too.
No wonder, many analysts are forecasting an U.S. recession this year as the economy is still striving hard to recover from the pandemic. Notably, the American economy contracted an annualized 1.4% on quarter in Q1 of 2022, well below market forecasts of a 1.1% expansion and following 6.9% growth in Q4 of 2021.
Against this backdrop, Merk Investments has launched an ETF that could be an useful tool to fight stagflation.
Inside STGF
The Merk Stagflation ETF (STGF) looks to track the price and yield performance of the Solactive Stagflation Index (SOLSTAGF), which seeks to follow the performance of components that are expected to benefit, either directly or indirectly, from persistent inflation, including in an environment of weak economic growth (stagflation).
The fund’s key holdings are Schwab U.S. TIPS ETF SCHP (64.47%), Invesco DB Oil Fund DBO (13.8%), Vaneck Merk Gold Shares OUNZ (11.38%), Vanguard Real Estate ETF VNQ (10.28%) and U.S. Dollar (0.05%).
How Does It Fit In a Portfolio?
“The Merk Stagflation ETF is designed to provide appreciation potential and inflation-sensitive income in an environment of stagflation like that of the 1970s—characterized by high inflation rates, a bull market in commodities, and rising real estate prices. The strategy holds a basket of exposures across three asset classes: inflation-protected bonds, commodities, and real estate,” said Axel Merk, president and chief investment officer of Merk Investments, in a news release announcing the fund’s launch, as quoted on etfdb.com. In a nutshell, the strategy is built on the methodology that has seen success in 1970s.
Can it See Success?
Though the fund is touted as the first stagflation-themed ETF in the market, its inflation-beating objective is not extremely unique. First of all, the fund is heavy on TIPS – the age-old tool to fight inflation.
Secondly, there are multi-asset products with a view to beat inflation, namely Amplify Inflation Fighter ETF IWIN. It hit the market in early February. It has exposure to categories like commodity REITs, homebuilders, miners, commodities & futures, interest rate hedge, real estate tech and cash.
Harbor All-Weather Inflation Focus ETF HGER – launched in February – follows the Quantix Inflation Index, which is composed of futures contracts on physical commodities and it considers relative inflation sensitivity of a commodity and the relative cost of holding a rolling futures position in the commodity. The index has exposure to oil, gold, silver and some other metals and agricultural commodities.
Still, STGF appears to be a nice product as it combines TIPS, gold, oil and real estate into one product. The product should see success at the current level as oil prices are soaring thanks to the Russia-Ukraine war. Global recessionary fear should back the safe-haven metal gold. Real estates are also viewed as a good inflation-beating product.
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Invesco DB Oil ETF (DBO): ETF Research Reports
Schwab U.S. TIPS ETF (SCHP): ETF Research Reports
Amplify Inflation Fighter ETF (IWIN): ETF Research Reports
Harbor AllWeather Inflation Focus ETF (HGER): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TIPS ETF SCHP (64.47%), Invesco DB Oil Fund DBO (13.8%), Vaneck Merk Gold Shares OUNZ (11.38%), Vanguard Real Estate ETF VNQ (10.28%) and U.S. Dollar (0.05%). Invesco DB Oil ETF (DBO): ETF Research Reports Red-hot inflation reading (due to COVID-19-and-war-induced supply chain issues) has been hitting headlines across the developed markets lately. | TIPS ETF SCHP (64.47%), Invesco DB Oil Fund DBO (13.8%), Vaneck Merk Gold Shares OUNZ (11.38%), Vanguard Real Estate ETF VNQ (10.28%) and U.S. Dollar (0.05%). Invesco DB Oil ETF (DBO): ETF Research Reports Amplify Inflation Fighter ETF (IWIN): ETF Research Reports | TIPS ETF SCHP (64.47%), Invesco DB Oil Fund DBO (13.8%), Vaneck Merk Gold Shares OUNZ (11.38%), Vanguard Real Estate ETF VNQ (10.28%) and U.S. Dollar (0.05%). Invesco DB Oil ETF (DBO): ETF Research Reports Inside STGF The Merk Stagflation ETF (STGF) looks to track the price and yield performance of the Solactive Stagflation Index (SOLSTAGF), which seeks to follow the performance of components that are expected to benefit, either directly or indirectly, from persistent inflation, including in an environment of weak economic growth (stagflation). | TIPS ETF SCHP (64.47%), Invesco DB Oil Fund DBO (13.8%), Vaneck Merk Gold Shares OUNZ (11.38%), Vanguard Real Estate ETF VNQ (10.28%) and U.S. Dollar (0.05%). Invesco DB Oil ETF (DBO): ETF Research Reports Stagflation arises when high inflation hits the economy and the age-old policy treatment of inflationary pressure – hiking interest rates – goes against economic growth. | 256256a4-eb56-4aa9-a2a1-1504f380d952 |
708885.0 | 2022-04-19 00:00:00 UTC | Natural Gas Prices Highest in 14 Years | DBO | https://www.nasdaq.com/articles/natural-gas-prices-highest-in-14-years | nan | nan | Colder-than-usual temperatures and record liquified natural gas exports are driving U.S. natural gas prices to hit their highest level in 14 years. According to Oilprice.com, the benchmark U.S. natural gas price rose by more than 7% on Monday morning to hit the highest level since the second half of 2008.
At 10:18 AM ET, the front-month futures price at the Henry Hub had leapt by 6.37% to $7.755 per million British thermal units, more than twice the price of the U.S. benchmark at the beginning of 2022. Last week, U.S. natural gas prices reached the highest close since 2008 at $7.3 .
“Below normal temperatures and strong exports driving the current tightness with stockpiles now almost 18% below the usual level,” Ole Hansen, head of commodity strategy at Saxo Bank, tweeted on Sunday.
NatGasWeather.com noted on Monday that immediate demand for natural gas in the U.S. should be strong from Monday through Wednesday, since the northern U.S. will be mild to cool as weather systems track through with rain and snow showers, and unseasonable lows in the 20s and 30s (F).
Investors looking to take advantage of these record high gas prices may want to consider Invesco’s energy-focused funds, including the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ).
DBO provides an opportunity to get exposure to the current upside in oil prices. Additionally, investors don’t hold direct exposure to the heavy price volatility of holding positions directly in the commodity itself.
DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. The single index commodity consists of light, sweet crude oil. The fund invests in futures contracts to track its corresponding index.
PXE, meanwhile, seeks to track the investment results of the Dynamic Energy Exploration & Production Intellidex Index. The fund invests at least 90% of its total assets in the securities that comprise the underlying index.
According to ETF Database, PXE “offers exposure to the exploration and production sub-sector of the domestic energy market, making it a potentially useful tool for those looking to target stocks of companies responsible for discovering and accessing new deposits of oil and gas.”
Finally, PXJ seeks to track the investment results of the Dynamic Oil Services Intellidex Index. The exchange traded fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
The underlying index that PXJ tracks is composed of common stocks of U.S. companies that assist in the production, processing, and distribution of oil and gas.
For more news, information, and strategy, visit the Innovative ETFs Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors looking to take advantage of these record high gas prices may want to consider Invesco’s energy-focused funds, including the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ). DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. | Investors looking to take advantage of these record high gas prices may want to consider Invesco’s energy-focused funds, including the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ). DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. | Investors looking to take advantage of these record high gas prices may want to consider Invesco’s energy-focused funds, including the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ). DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. | DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. Investors looking to take advantage of these record high gas prices may want to consider Invesco’s energy-focused funds, including the Invesco DB Oil Fund (DBO), the Invesco Dynamic Energy Exploration & Production ETF (PXE), and the Invesco Dynamic Oil & Gas Services ETF (PXJ). DBO provides an opportunity to get exposure to the current upside in oil prices. | ba9774b7-1c5c-4991-b6f1-cf7cd6c39b2c |
708886.0 | 2022-04-11 00:00:00 UTC | Commodity ETFs in Focus Amid Rising Inflation & Ukraine Crisis | DBO | https://www.nasdaq.com/articles/commodity-etfs-in-focus-amid-rising-inflation-ukraine-crisis | nan | nan | (1:00) - How Long Could This Oil Bull Run Last?
(9:50) - Invesco DB Oil/Energy Fund: DBO & DBE
(14:00) - The Agricultural Market: Invesco DB Agricultural Fund (DBA)
(19:30) - What Is The Current Outlook For The Metals Industry?
(25:10) - Invesco Commodity ETFs: PDBC & DBC
(29:15) - Investing In Future vs. Equity ETFs
(35:00) - Breaking Down Clean Energy Investments Amid War
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Jason Bloom, Head of Fixed Income and Alternatives ETF Product Strategy at Invesco, about commodity ETFs.
Commodities had their best quarter in more than 30 years as they were already benefitting from inflation, and the Russia-Ukraine war supercharged the rally.
Russia is the world’s second-largest producer of natural gas and third largest oil producer. President Biden recently announced the release of about a million barrels of oil per day from strategic reserves for six months to bring prices down. Renewed lockdowns in China have raised demand concerns but many experts predict that oil could hit $200 a barrel in the coming months.
The Invesco DB Oil Fund DBO and the Invesco DB Energy Fund DBE hold crude oil and energy-related futures contracts.
Russia and Ukraine are major exporters of grains. Russia is also the world’s top fertilizer exporter. As the conflict shows no signs of easing, Ukrainian farmers are finding it difficult to plant spring crops. Russian grain shipments are also impacted due to sanctions and supply chain disruptions.
Further, the spike in energy prices has raised production and transportation costs of fertilizers, raising the possibility of continued surge in food prices. The Invesco DB Agriculture Fund DBA invests in agricultural commodity futures contracts.
Many metals have also seen extraordinary moves since the start of the conflict, as Russia is a major producer and exporter of industrial metals, in particular nickel, palladium and aluminum. The Invesco DB Base Metals Fund DBB tracks an index of three base metal futures contracts.
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF PDBC and the Invesco DB Commodity Index Tracking Fund DBC provide diversified exposure to 14 commodities though futures. What are the differences between the two?
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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Invesco DB Oil ETF (DBO): ETF Research Reports
Invesco DB Commodity Index Tracking ETF (DBC): ETF Research Reports
Invesco DB Energy ETF (DBE): ETF Research Reports
Invesco DB Agriculture ETF (DBA): ETF Research Reports
Invesco DB Base Metals ETF (DBB): ETF Research Reports
Invesco Optimum Yield Diversified Commodity Stratgy No K1 ETF (PDBC): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (9:50) - Invesco DB Oil/Energy Fund: DBO & DBE (14:00) - The Agricultural Market: Invesco DB Agricultural Fund (DBA) (19:30) - What Is The Current Outlook For The Metals Industry? The Invesco DB Oil Fund DBO and the Invesco DB Energy Fund DBE hold crude oil and energy-related futures contracts. Invesco DB Oil ETF (DBO): ETF Research Reports | (9:50) - Invesco DB Oil/Energy Fund: DBO & DBE (14:00) - The Agricultural Market: Invesco DB Agricultural Fund (DBA) (19:30) - What Is The Current Outlook For The Metals Industry? The Invesco DB Oil Fund DBO and the Invesco DB Energy Fund DBE hold crude oil and energy-related futures contracts. Invesco DB Oil ETF (DBO): ETF Research Reports | Invesco DB Oil ETF (DBO): ETF Research Reports (9:50) - Invesco DB Oil/Energy Fund: DBO & DBE (14:00) - The Agricultural Market: Invesco DB Agricultural Fund (DBA) (19:30) - What Is The Current Outlook For The Metals Industry? The Invesco DB Oil Fund DBO and the Invesco DB Energy Fund DBE hold crude oil and energy-related futures contracts. | Invesco DB Oil ETF (DBO): ETF Research Reports (9:50) - Invesco DB Oil/Energy Fund: DBO & DBE (14:00) - The Agricultural Market: Invesco DB Agricultural Fund (DBA) (19:30) - What Is The Current Outlook For The Metals Industry? The Invesco DB Oil Fund DBO and the Invesco DB Energy Fund DBE hold crude oil and energy-related futures contracts. | c390cb97-0da2-4f43-b6bb-c4ca013d07ea |
708887.0 | 2022-04-04 00:00:00 UTC | ETF Areas in Focus Amid the Russia-Ukraine Crisis | DBO | https://www.nasdaq.com/articles/etf-areas-in-focus-amid-the-russia-ukraine-crisis | nan | nan | The Russia-Ukraine conflict is continuously taking new twists and turns, keeping investors on edge. Russia’s atrocities on Ukrainians, labeled as “war crimes,” are being highly condemned by global leaders. After seeing the images from Bucha, northwest of Kyiv,some global leaders have proposed the idea of imposing more sanctions on Russia.
As true with any geopolitical factor, it is difficult to precisely project any economic outlook since the outcome of such conflicts is highly unpredictable. The same goes for the global economists amid the Russia-Ukraine conflict. However, if the crisis continues, supply-chain disruptions, rising commodity prices driving inflation levels and tightening monetary policies might reverse the economic recovery achieved so far globally.
Studying the current market conditions, we highlight a few ETF areas that have been showing strength and remained in the spotlight amid the Russia-Ukraine war:
Aerospace & Defense ETFs
Aerospace and defense space has witnessed growing investor inclination. NATO countries have been extending their support to Ukraine for fighting off the invasion by providing arms, ammunition and other military equipment. The United States has declared a huge military support package for Ukraine. Moreover, Canada has provided military protective equipment, anti-tank weapons systems and upgraded ammunition. Notably, Russia’s attack might push other countries to strengthen their military capacity and increase defense budgets. For instance, Germany has announced to raise its defense spending to 2% of gross domestic product from about 1.5% in 2021.
The major U.S. companies in the space like Lockheed Martin LMT and Raytheon Technologies RTX have already gained about 12.7% ad 6.3% since the beginning of the Russian attack on Ukraine (as of Apr 1).
In this regard, investors can consider ETFs like iShares U.S. Aerospace & Defense ETF ITA, SPDR S&P Aerospace & Defense ETF XAR, ARK Space Exploration & Innovation ETF (ARKX) andSPDR S&P Kensho Future Security ETF (FITE) (read: ETFs to Watch in a Week Packed With Events).
Oil ETFs
Oil has witnessed an astonishing rally amid the Russia-Ukraine crisis. The growing number of sanctions on Russia is driving prices of the commodity. However, the United States releasing its reserve has led to some easing in oil prices and relaxing of concerns. Also, the resurging of COVID-19 cases in China and the imposition of lockdown to control it have led to fears of decreasing demand for oil.
Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) can be kept an eye on (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on).
Energy ETFs
The energy space has remained a prime investment area holding the interest of market participants since the beginning of the year. Reopening global economies, accelerated coronavirus vaccine rollout and improving labor markets were already adding to the strength in the sector. Going on, the rally in oil prices due to the Russia-Ukraine crisis has added to the momentum in the sector. Russian President’s demand for European nations to pay in ruble for gas added to more gains in the space.
Against the bullish energy sector backdrop, let’s take a look at some energy ETFs that are worth adding for more returns: Invesco Dynamic Energy Exploration & Production ETF PXE, Vanguard Energy ETF VDE, Fidelity MSCI Energy Index ETF (FENY), The Energy Select Sector SPDR Fund (XLE) and iShares U.S. Energy ETF (IYE) (read: 5 ETFs Leading the Commodity Rally in March).
Agriculture ETFs
Russia and Ukraine undisputedly hold important positions as agricultural producers in the global commodities market. Thus, the escalation in tensions has sparked a rally in a broad range of commodities. The latest developments can also slow down production activities and impact the export of commodities and goods. This is true as the tensions have led to supply-disruption fears in an already-tight commodity market.
Following are some commodity ETFs that investors can keep track of as the geopolitical crisis worsens: Teucrium Wheat Fund WEAT, Teucrium Corn Fund CORN and The VanEck Agribusiness ETF (MOO) (read: 5 Commodity ETFs Enjoying Hot Streak in Q1).
Gold ETFs
The yellow metal has enjoyed investors’ increased attention amid the Russia-Ukraine conflict. According to Kenneth Lamont, senior fund analyst for passive strategies at Morningstar, “There are a couple of things playing into the gold story. I think it’s people hedging their risk and also the added bonus that it has historically provided some level of inflation protection,” as stated in a Financial Times article.
Considering the current scenario, gold prices have been rising. The inflationary backdrop in the United States is favorable for gold as the metal is viewed as a hedge against inflation.
Gold ETFs mostly move in tandem with gold prices. The SPDR Gold Shares GLD, iShares Gold Trust IAU, SPDR Gold MiniShares Trust (GLDM) and GraniteShares Gold Trust (BAR) are some of the popular ETFs (read: Best ETF Investment Strategies for Q2 2022).
Cybersecurity ETFs
Investors are paying great attention to cybersecurity stocks as these have been rallying amid the rising panic of cyberattacks. Market experts have warned about the possibility of cyberattacks by Russia in retaliation for Western sanctions. The West has been continuing to isolate Moscow by imposing several sanctions on Russian banks, its sovereign debt along with Russian President Vladimir Putin and Foreign Minister Sergey Lavrov. Notably, cyberattacks can be part of Russia’s war strategy. Several Ukrainian entities have already been hacked. Also, the increasing adoption of revolutionary technologies is exposing businesses, governments and organizations to cyber risks.
Investors seeking to tap the boom in the cyber security market could consider the following ETFs: ETFMG Prime Cyber Security ETF HACK, First Trust NASDAQ Cybersecurity ETF CIBR, Global X Cybersecurity ETF (BUG) and iShares Cybersecurity and Tech ETF (IHAK) (read: Why Cybersecurity ETFs are Rising amid Russia-Ukraine Crisis).
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Lockheed Martin Corporation (LMT): Free Stock Analysis Report
SPDR Gold Shares (GLD): ETF Research Reports
iShares Gold Trust (IAU): ETF Research Reports
United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
ETFMG Prime Cyber Security ETF (HACK): ETF Research Reports
iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
Vanguard Energy ETF (VDE): ETF Research Reports
First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports
Teucrium Corn ETF (CORN): ETF Research Reports
Teucrium Wheat ETF (WEAT): ETF Research Reports
Invesco Dynamic Energy Exploration & Production ETF (PXE): ETF Research Reports
Raytheon Technologies Corporation (RTX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) can be kept an eye on (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports However, if the crisis continues, supply-chain disruptions, rising commodity prices driving inflation levels and tightening monetary policies might reverse the economic recovery achieved so far globally. | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) can be kept an eye on (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports Against the bullish energy sector backdrop, let’s take a look at some energy ETFs that are worth adding for more returns: Invesco Dynamic Energy Exploration & Production ETF PXE, Vanguard Energy ETF VDE, Fidelity MSCI Energy Index ETF (FENY), The Energy Select Sector SPDR Fund (XLE) and iShares U.S. Energy ETF (IYE) (read: 5 ETFs Leading the Commodity Rally in March). | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) can be kept an eye on (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports In this regard, investors can consider ETFs like iShares U.S. Aerospace & Defense ETF ITA, SPDR S&P Aerospace & Defense ETF XAR, ARK Space Exploration & Innovation ETF (ARKX) andSPDR S&P Kensho Future Security ETF (FITE) (read: ETFs to Watch in a Week Packed With Events). | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) can be kept an eye on (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports Gold ETFs The yellow metal has enjoyed investors’ increased attention amid the Russia-Ukraine conflict. | e5cd4f61-b2b5-4122-bb42-07888f09646f |
708888.0 | 2022-03-25 00:00:00 UTC | The Weekly Wrap – FED Chair Powell and Economic Data Deliver USD Support | DBO | https://www.nasdaq.com/articles/the-weekly-wrap-fed-chair-powell-and-economic-data-deliver-usd-support | nan | nan | FXEmpire.com -
The Stats
It was a quieter week on the economic calendar for the week ending 25th March.
A total of 43 stats were monitored, following 59 stats in the week prior.
Of the 43 stats, 23 came in ahead of forecasts, with 19 economic indicators coming up short of forecast. 1 stat was in line with the forecast in the week.
Looking at the numbers, 15 of the stats reflected an upward trend from previous figures. Of the remaining 28 stats, 27 reflected a deterioration from previous numbers.
Fed Chair Powell, disappointing stats, and Russia’s ongoing invasion of Ukraine delivered Dollar support in the week. Early in the week, the Fed Chair talked of the willingness to take an aggressive rate path if needed.
Out of the U.S
It was a mixed week on the economic data front. Core durable goods and consumer sentiment were disappointing, while private sector PMI and labor market numbers were upbeat.
According to prelim figures, the U.S Services PMI rose from 56.5 to 58.9, with the manufacturing PMI up from 57.3 to 58.5. In the week ending 18th March, jobless claims fell back to sub-200k levels, also Dollar positive.
Core durable goods orders fell unexpectedly, however, with consumer sentiment waning in March.
In the week ending 25th March, the Dollar Spot Index rose by 0.57% to end the week at 98.789. In the week prior, the Index fell by 0.90% to 98.229.
Out of the UK
Inflation, private sector PMIs, and retail sales were the key stats of the week.
It was a mixed bag for the Pound. While inflationary pressures picked up once more, consumer spending fell in February, with rising prices affecting spending.
On the positive, however, was a pickup in service sector activity. In March, the services PMI rose from 60.5 to 61.0.
In the week, the Pound increased by 0.03% to end the week at $1.3182. The Pound rose by 1.08% to $1.3178 in the week prior.
The FTSE100 ended the week up 1.06%, following a 3.48% gain from the previous week.
Out of the Eurozone
Prelim private sector PMI figures for France, Germany, and the Eurozone were in focus on Thursday.
While the PMIs came in ahead of forecasts, private sector activity grew at a slower pace in March. The Eurozone’s composite PMI fell from 55.5 to a 2-month low of 54.5. Weighing on private sector activity was the manufacturing sector. The Eurozone’s manufacturing PMI fell to a 14-month low of 57.0.
On Friday, German business sentiment figures also disappointed, with the manufacturing sector weighing on headline figures. The IFO Business Climate Index fell from 98.5 to 90.8. While current sentiment remained resilient, the expectations indicator tumbled from 98.4 to 85.1.
From the ECB, the Economic Bulletin added to the doom and gloom, with the ECB highlighting uncertainty ahead and risks to the economy tilted to the downside.
For the week, the EUR fell by 0.62% to $1.0983. In the previous week, the EUR rose by 1.27% to $1.1051.
The EuroStoxx600 slipped by 0.06%, with the CAC40 and the DAX ending the week down 1.01% and by 0.74%, respectively.
For the Loonie
It was a quiet week on the economic data front. Stats were limited to RMPI figures that had a muted impact on the Loonie.
The upward trend in crude oil prices provided support in the week.
In the week ending 25th March, the Loonie rose by 1.00 to C$1.2477 against the Greenback. In the week prior, the Loonie increased by 1.11% to C$1.2603.
Elsewhere
It was a bullish week for the Aussie Dollar and the Kiwi Dollar.
The Aussie Dollar rallied by 1.35% to $0.7515, with the Kiwi Dollar gaining 0.93% to end the week at $0.6972.
Both found support, with the markets viewing distance from the Russian invasion of Ukraine as positive.
For the Aussie Dollar
There were no material stats to provide the Aussie Dollar with direction.
For the Kiwi Dollar
Trade and consumer sentiment were the key stats in the week. The numbers had a muted impact on the Kiwi Dollar, however, despite weaker consumer sentiment in the first quarter.
Trade data was mixed for February. While the trade deficit narrowed compared with January, the deficit widened year on year to NZ$8,370m.
Further disruption to supply chains is evidenced in surveys, suggesting plenty of uncertainty ahead.
For the Japanese Yen
Private sector PMIs and inflation were the main stats of the week. The numbers failed to impress. Tokyo’s annual core rate of inflation ticked up from 0.5% to 0.8%, with the services sector continuing to contract. In March, the services PMI rose from 44.2 to 48.7.
A pickup in manufacturing sector activity was of little consolation, with the BoJ seeing the Russian invasion of Ukraine as a significant risk to the economic outlook.
The Japanese Yen slid by 2.42% to end the week at ¥122.05 against the Dollar. In the week prior, the Yen ended the week down by 1.60% to ¥119.170.
Out of China
There were no major stats from China for the markets to consider in the week.
In the week ending 18th March, the Chinese Yuan fell by 0.08% to CNY6.3662. Through the week prior, the Yuan ended the week down by 0.31% to CNY6.3393.
The Hang Seng Index ended the week down 0.04%, with the CSI300 falling 2.14%.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fed Chair Powell, disappointing stats, and Russia’s ongoing invasion of Ukraine delivered Dollar support in the week. Core durable goods and consumer sentiment were disappointing, while private sector PMI and labor market numbers were upbeat. A pickup in manufacturing sector activity was of little consolation, with the BoJ seeing the Russian invasion of Ukraine as a significant risk to the economic outlook. | Core durable goods and consumer sentiment were disappointing, while private sector PMI and labor market numbers were upbeat. In the week ending 25th March, the Dollar Spot Index rose by 0.57% to end the week at 98.789. Out of the Eurozone Prelim private sector PMI figures for France, Germany, and the Eurozone were in focus on Thursday. | FXEmpire.com - The Stats It was a quieter week on the economic calendar for the week ending 25th March. In the week ending 25th March, the Dollar Spot Index rose by 0.57% to end the week at 98.789. In the week prior, the Yen ended the week down by 1.60% to ¥119.170. | FXEmpire.com - The Stats It was a quieter week on the economic calendar for the week ending 25th March. In the week ending 25th March, the Dollar Spot Index rose by 0.57% to end the week at 98.789. Trade data was mixed for February. | 99afc92d-755f-4fd3-926b-519cb1aefbe8 |
708889.0 | 2022-03-25 00:00:00 UTC | Invesco’s Oil Funds Surge in Value | DBO | https://www.nasdaq.com/articles/invescos-oil-funds-surge-in-value | nan | nan | Invesco’s energy-focused funds have seen huge gains so far this year as oil prices have soared. The Invesco DB Oil Fund (DBO) is up nearly 31% year-to-date, while the Invesco Dynamic Energy Exploration & Production ETF (PXE) and the Invesco Dynamic Oil & Gas Services ETF (PXJ) are each up roughly 45% since the beginning of the year.
DBO provides an opportunity to get exposure to the current upside in oil prices. Additionally, investors don’t hold direct exposure to the heavy price volatility of holding positions directly in the commodity itself.
DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. The single index commodity consists of light, sweet crude oil. The fund invests in futures contracts to track its corresponding index.
PXE, meanwhile, seeks to track the investment results of the Dynamic Energy Exploration & Production Intellidex Index. The fund invests at least 90% of its total assets in the securities that comprise the underlying index.
According to the analyst report on ETF Database, PXE “offers exposure to the exploration and production sub-sector of the domestic energy market, making it a potentially useful tool for those looking to target stocks of companies responsible for discovering and accessing new deposits of oil and gas.”
Finally, PXJ seeks to track the investment results of the Dynamic Oil Services Intellidex Index. The exchange traded fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index.
The underlying index is composed of common stocks of U.S. companies that assist in the production, processing, and distribution of oil and gas. The fund is up a healthy 37% thus far in 2021.
“PXJ is likely too targeted for those with a long-term focus but can be useful as a tactical overlay or as part of a sector rotation strategy,” said analysis from ETF Database. And like DBO and PXE, “PXJ is part of the suite of Intellidex product from PowerShares, meaning that this ETF is linked to an index designed to outperform traditional cap-weighted benchmarks. Those who believe this methodology has the potential to generate excess returns may find PXJ to be the ideal way to access this corner of the U.S. energy market.”
For more news, information, and strategy, visit the Innovative ETFs Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And like DBO and PXE, “PXJ is part of the suite of Intellidex product from PowerShares, meaning that this ETF is linked to an index designed to outperform traditional cap-weighted benchmarks. The Invesco DB Oil Fund (DBO) is up nearly 31% year-to-date, while the Invesco Dynamic Energy Exploration & Production ETF (PXE) and the Invesco Dynamic Oil & Gas Services ETF (PXJ) are each up roughly 45% since the beginning of the year. DBO provides an opportunity to get exposure to the current upside in oil prices. | The Invesco DB Oil Fund (DBO) is up nearly 31% year-to-date, while the Invesco Dynamic Energy Exploration & Production ETF (PXE) and the Invesco Dynamic Oil & Gas Services ETF (PXJ) are each up roughly 45% since the beginning of the year. DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. | The Invesco DB Oil Fund (DBO) is up nearly 31% year-to-date, while the Invesco Dynamic Energy Exploration & Production ETF (PXE) and the Invesco Dynamic Oil & Gas Services ETF (PXJ) are each up roughly 45% since the beginning of the year. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. DBO provides an opportunity to get exposure to the current upside in oil prices. | The Invesco DB Oil Fund (DBO) is up nearly 31% year-to-date, while the Invesco Dynamic Energy Exploration & Production ETF (PXE) and the Invesco Dynamic Oil & Gas Services ETF (PXJ) are each up roughly 45% since the beginning of the year. DBO provides an opportunity to get exposure to the current upside in oil prices. DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. | 6f84ace1-546b-4f27-97c2-18b0bf6970b8 |
708890.0 | 2022-03-18 00:00:00 UTC | The Weekly Wrap – Riskier Assets Gain at the Expense of the USD | DBO | https://www.nasdaq.com/articles/the-weekly-wrap-riskier-assets-gain-at-the-expense-of-the-usd | nan | nan | FXEmpire.com -
The Stats
It was a busier week on the economic calendar for the week ending 18th March.
A total of 59 stats were monitored, following 50 stats in the week prior.
Of the 59 stats, 29 came in ahead of forecasts, with 23 economic indicators coming up short of forecast. 7 stats were in line with forecasts in the week.
Looking at the numbers, 32 of the stats reflected an upward trend from previous figures. Of the remaining 27 stats, 25 reflected a deterioration from previous numbers.
While the stats influenced, geopolitics and monetary policy were the key drivers for the global financial markets. Hopes of Russia agreeing to a ceasefire delivered support for riskier assets. Market reaction to the FED’s rate hike and projections was also risk-on.
Out of the U.S
In the first half of the week, wholesale inflation and retail sales were the key stats. The numbers were dollar negative.
The core producer price index increased by 0.2% in February, softer than a 1.0% rise in January.
More significantly, retail sales were also disappointing. Core retail sales rose by just 0.2%, with retail sales up 0.3% in February. Both had seen marked increases in the month prior.
Jobless claims and Philly FED Manufacturing numbers were more upbeat later in the week. In February, the Philly FED Manufacturing PMI rose from 16.0 to 27.4, with initial jobless claims falling from 229k to 214k in the week ending 10th March.
While the stats drew plenty of interest, the FED monetary policy decision and projections were key in the week.
In line with market expectations, the FED raised interest rates by 25 basis points on Wednesday, with interest rate projections hawkish for the remainder of the year. FOMC members projected interest rates to hit 2.8% by Q1 2023 versus a previous forecast of 0.9%.
In the week ending 18th March, the Dollar Spot Index fell by 0.90% to end the week at 98.229. In the week prior, the Index rose by 0.48% to 99.124.
Out of the UK
Claimant counts and the UK’s unemployment rate were the key stats of the week. The numbers were Pound positive. Claimant counts fell by a further 48.1k in February, with the unemployment rate declining from 4.1% to 3.9%.
While the stats were Pound positive, the Bank of England monetary policy decision was the main event.
In line with market expectations, the BoE lifted interest rates to 0.75%, with the UK bracing for double-digit inflation for the first time since the 1980s.
The Pound rose by 1.08% to end the week at $1.3178. In the week prior, the Pound slid by 1.46% to $1.3037.
The FTSE100 ended the week up 3.48%, following a 2.41% gain from the previous week.
Out of the Eurozone
ZEW Economic sentiment figures for Germany and the Eurozone disappointed in the week. The markets were expecting weak numbers, however, as analysts assessed the impact of the Russian invasion of Ukraine on the economic outlook.
Late in the week, Eurozone trade data and wage growth had a muted impact on the EUR. The markets brushed aside the figures despite wages growing at a softer pace in Q4 and the Eurozone’s trade deficit widening from €4.6bn to €27.2bn in January.
For the week, the EUR rose by 1.27% to $1.1051. In the previous week, the EUR fell by 0.15% to $1.0912.
The EuroStoxx600 rose by 5.26%, with the CAC40 and the DAX ending the week up 5.75% and by 5.76%, respectively.
For the Loonie
Inflation and retail sales were in focus in the week. Inflationary pressures picked up in February, with the core annual rate of inflation accelerating from 4.3% to 4.8%. The retail sales figures were also Loonie positive. Consumer spending jumped 3.2% in January, reversing a 2% slide in the month prior.
The numbers were not enough to sink the Loonie, however. An upward trend in crude oil prices in March continued to deliver Loonie support.
In the week ending 18th March, the Loonie rose by 1.11 to C$1.2603 against the Greenback. In the week prior, the Loonie declined by 0.10% to C$1.2744.
Elsewhere
It was a bullish week for the Aussie Dollar and the Kiwi Dollar.
The Aussie Dollar rose by 1.67% to $0.7415, with the Kiwi Dollar gaining 1.45% to end the week at $0.6908.
For the Aussie Dollar
Employment figures impressed in the week, providing Aussie Dollar support.
In February, full employment surged by 121.9k, reversing a 17.0k fall from January. As a result, Australia’s unemployment rate fell from 4.2% to 4.0%.
Also positive for the Aussie Dollar in the week was the hope of Beijing delivering economic stimulus to support growth.
For the Kiwi Dollar
Economic data was limited to Q4 GDP numbers that fell short of forecasts. The numbers were not bad enough, however, to weigh on the Kiwi Dollar.
In Q4, the New Zealand economy grew by 3.0%, rebounding from a 3.7% contraction in the quarter prior.
For the Kiwi, the hopes of Beijing stimulus to support the Chinese economy were also positive.
For the Japanese Yen
Trade data and inflation were in focus in the week. A sharp jump in exports led to a narrowing of Japan’s trade deficit in February. Inflationary pressures also picked up, however. Japan’s core annual rate of inflation accelerated from 0.2% to 0.6%.
Ultimately, monetary policy divergence left the Japanese Yen on the back foot against the Dollar.
On Friday, the BoJ left monetary policy unchanged, while raising concerns over the impact of Russia’s invasion of Ukraine on growth.
The Japanese Yen slid by 1.60% to end the week at ¥119.170 against the Dollar. In the week prior, the Yen ended the week tumbled by 2.15% to ¥117.290.
Out of China
Fixed asset investment and industrial production figures were in focus. The numbers didn’t disappoint, though concerns over fresh lockdown measures to contain a new wave of COVID-19 infections overshadowed the upbeat numbers.
In February, fixed asset investments rose by 12.2%, year-on-year, which was up from 4.9% in January.
Industrial production increased by 7.5%, which was up from 4.3% in January.
Hopes of fresh stimulus to support China’s economy supported riskier assets in the week.
In the week ending 18th March, the Chinese Yuan fell by 0.35 to CNY6.3612. Through the week prior, the Yuan ended the week down by 0.31% to CNY6.3393.
The Hang Seng Index ended the week up 4.18%, while the CSI300 fell by 0.94%.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In February, the Philly FED Manufacturing PMI rose from 16.0 to 27.4, with initial jobless claims falling from 229k to 214k in the week ending 10th March. On Friday, the BoJ left monetary policy unchanged, while raising concerns over the impact of Russia’s invasion of Ukraine on growth. This article was originally posted on FX Empire More From FXEMPIRE: Bullish NFP Data Could Trigger Breakdown Under $1893.20 Ukraine’s ‘Father of Crypto’ Says War Has Changed the Crypto Scene Interest Costs Diverge Near Term for Emerging-market and High-debt, Low-Growth Advanced Economies The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also positive for the Aussie Dollar in the week was the hope of Beijing delivering economic stimulus to support growth. Out of China Fixed asset investment and industrial production figures were in focus. Hopes of fresh stimulus to support China’s economy supported riskier assets in the week. | FXEmpire.com - The Stats It was a busier week on the economic calendar for the week ending 18th March. In the week ending 18th March, the Dollar Spot Index fell by 0.90% to end the week at 98.229. Through the week prior, the Yuan ended the week down by 0.31% to CNY6.3393. | A total of 59 stats were monitored, following 50 stats in the week prior. In the week prior, the Index rose by 0.48% to 99.124. The retail sales figures were also Loonie positive. | bc7af160-0966-414a-974c-5663c5202ba7 |
708891.0 | 2022-03-14 00:00:00 UTC | More Rally in Oil ETFs in the Cards This Week? | DBO | https://www.nasdaq.com/articles/more-rally-in-oil-etfs-in-the-cards-this-week | nan | nan | Oil prices have soared to their highest levels in many years due to geopolitical tensions in Europe and the Middle East. The demand recovery after the peak of pandemic is also aiding the oil rally. A dozen ballistic missiles launched from outside Iraq struck the country’s northern Kurdish regional capital Irbil on Sunday, as quoted on CNBC. Iran’s Revolutionary Guards later held themselves responsible for the attack, which also targeted the U.S. consulate’s new building.
The missile attack following talks to revive the 2015 Iran nuclear deal are on the verge of collapsing after a last-minute Russian demand forced world powers to pause negotiations for an indefinite period despite an almost completed text.
Apart from the Middle-East tensions, oil price has been rallying on the Russia-Ukraine war. Russia is energy-rich. And Europe is highly dependent on that country for energy, importing about 40% of its energy requirement. Russia is also the provider of about 35% of Europe’s gas. Hence, the latest Russia-Ukraine tensions have led to uncertainty in the energy market supply chain and sent the commodities into soaring.
Oil breached $100 for the first time since 2014. United States Brent Oil Fund, LP BNO has gained 21.2% past month amid heightened tensions in East Europe. In any case, oil prices have been rising since the beginning of 2022 on a demand recovery and less OPEC+ output.
Material uptick in output is tough at present. U.S producers expect to keep oil production flat this year as output cannot be ramped up instantly amid soaring crude prices, said Occidental Petroleum (OXY) CEO Vicki Hollub, as quoted on CNBC. Aging wells, labor shortages and higher raw material prices because of supply chain issues have been posing as threats. Though UAE said that it wanted OPEC to increase production, the move will not be very easy.
In the peak of the pandemic, most oil companies went for capex cuts due to lackluster demand. Now, the sudden jump in demand thanks to the better COVID-19 management and geopolitical crisis in East Europe and Middle East may not enable companies to take advantage fully by increasing production very fast. This, in turn, would push up oil prices (read: Buy Clean Energy ETFs on Beaten-Down Prices).
Against this backdrop, below we highlight a few oil ETFs that could be tapped for gains in the near term.
ETFs in Focus
iPath Pure Beta Crude Oil ETN OIL – Up 15.6% Past Month
United States Oil Fund LP USO – Up 15.4% Past Month
ProShares K-1 Free Crude Oil Strategy ETF OILK – Up 14.3% Past Month
United States 12 Month Oil Fund LP USL – Up 12.3% Past Month
Invesco DB Oil Fund DBO – Up 7.7% Past Month
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
iPath Pure Beta Crude Oil ETN (OIL): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
ProShares K1 Free Crude Oil Strategy ETF (OILK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ETFs in Focus iPath Pure Beta Crude Oil ETN OIL – Up 15.6% Past Month United States Oil Fund LP USO – Up 15.4% Past Month ProShares K-1 Free Crude Oil Strategy ETF OILK – Up 14.3% Past Month United States 12 Month Oil Fund LP USL – Up 12.3% Past Month Invesco DB Oil Fund DBO – Up 7.7% Past Month Invesco DB Oil ETF (DBO): ETF Research Reports The missile attack following talks to revive the 2015 Iran nuclear deal are on the verge of collapsing after a last-minute Russian demand forced world powers to pause negotiations for an indefinite period despite an almost completed text. | ETFs in Focus iPath Pure Beta Crude Oil ETN OIL – Up 15.6% Past Month United States Oil Fund LP USO – Up 15.4% Past Month ProShares K-1 Free Crude Oil Strategy ETF OILK – Up 14.3% Past Month United States 12 Month Oil Fund LP USL – Up 12.3% Past Month Invesco DB Oil Fund DBO – Up 7.7% Past Month Invesco DB Oil ETF (DBO): ETF Research Reports United States Brent Oil Fund, LP BNO has gained 21.2% past month amid heightened tensions in East Europe. | ETFs in Focus iPath Pure Beta Crude Oil ETN OIL – Up 15.6% Past Month United States Oil Fund LP USO – Up 15.4% Past Month ProShares K-1 Free Crude Oil Strategy ETF OILK – Up 14.3% Past Month United States 12 Month Oil Fund LP USL – Up 12.3% Past Month Invesco DB Oil Fund DBO – Up 7.7% Past Month Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports | ETFs in Focus iPath Pure Beta Crude Oil ETN OIL – Up 15.6% Past Month United States Oil Fund LP USO – Up 15.4% Past Month ProShares K-1 Free Crude Oil Strategy ETF OILK – Up 14.3% Past Month United States 12 Month Oil Fund LP USL – Up 12.3% Past Month Invesco DB Oil Fund DBO – Up 7.7% Past Month Invesco DB Oil ETF (DBO): ETF Research Reports Oil prices have soared to their highest levels in many years due to geopolitical tensions in Europe and the Middle East. | ea989e6c-1018-4022-a1a7-c5eb2dd18fe7 |
708892.0 | 2022-03-07 00:00:00 UTC | 6 ETF Areas Rallying Amid the Russia-Ukraine Crisis | DBO | https://www.nasdaq.com/articles/6-etf-areas-rallying-amid-the-russia-ukraine-crisis | nan | nan | The Russia-Ukraine saga continues to spark a rally in some sectors. Wall Street, in the meanwhile, is facing the brunt of the attacks as investors are closely monitoring the developments. In fact, last week was the fourth consecutive losing week for the Dow Jones Industrial Average.
Studying the current market conditions, we highlight a few ETF areas that have been showing strength amid the Russia-Ukraine war:
Aerospace & Defense ETFs
Russia’s attack on Ukraine has led to increasing investor inclination toward the aerospace and defense space. NATO countries have been extending their support to Ukraine for fighting off the invasion by providing arms, ammunition and other military equipment. In fact, Ursula von der Leyen, president of the European Commission, has announced to finance the purchase and delivery of arms to Ukraine, amounting to about €450 million. Even the United States and Canada are extending their support to Ukraine. A military support package, totaling €350 million for Ukraine, has been declared by the United States. Moreover, Canada has provided military protective equipment, anti-tank weapons systems and upgraded ammunition.
Russia’s attack might also push other countries to strengthen their military capacity and increase defense budgets. For instance, Germany has announced to raise its defense spending to 2% of gross domestic product from about 1.5% in 2021.
In this regard, investors can consider ETFs like iShares U.S. Aerospace & Defense ETF ITA, SPDR S&P Aerospace & Defense ETF XAR, ARK Space Exploration & Innovation ETF (ARKX) andSPDR S&P Kensho Future Security ETF (FITE) (read: Russia Attacks Ukraine: ETF Areas Grabbing Investor Attention).
Oil ETFs
Oil is witnessing an astonishing rally amid the Russia-Ukraine crisis. The international benchmark, Brent crude, has touched its highest mark of $139.13 (since July 2008) before reaching $129.75 per barrel. The chances of imposing a ban on imports on Russian oil and natural gas by the United States and its allies largely led the rally. In this regard, U.S. Secretary of State Antony Blinken has mentioned that “We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil while making sure that there is still an appropriate supply of oil on world markets. That’s a very active discussion as we speak,” as stated in a CNBC article.
Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) make great investment choices (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on).
Energy ETFs
The coronavirus vaccine rollout is gradually helping control the spread of the outbreak across the globe. The optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for cyclical sectors. The progress in coronavirus vaccine rollout presents a strong case,favoring a faster return to normalcy and economic recovery.
Oil prices have been rising since the beginning of 2022. The upside in crude oil prices is triggered by factors like easing Omicron variant concerns, supply shortages, and geopolitical tensions in Eastern Europe and the Middle East.
Against the bullish energy sector backdrop, let’s take a look at some energy ETFs that are worth adding to your portfolio for boosting returns: Invesco Dynamic Energy Exploration & Production ETF PXE, Vanguard Energy ETF VDE, Fidelity MSCI Energy Index ETF (FENY), The Energy Select Sector SPDR Fund (XLE) and iShares U.S. Energy ETF (IYE) (read: Russia-Ukraine Crisis Powers Rally in Energy ETFs).
Agriculture ETFs
There is no denying that Russia and Ukraine hold important positions as agricultural producers in the global commodities market. Thus, the escalation in tensions has sparked a rally in a broad range of commodities. The latest developments can also slow down production activities and impact the export of commodities and goods. This is true as the tensions have led to supply-disruption fears in an already-tight commodity market.
It is important to note that Russia stands as the largest wheat exporter. Ukraine also occupies a spot among the four major wheat exporters (according to JPMorgan). Bank of America states that Russia is responsible for 17% and Ukraine for 12% of the 207-million-ton international wheat trade. Ukraine, in the meanwhile, is famously called the “breadbasket of Europe.” Ukraine is also a large exporter of corn, rye, barley along with cooking oils.
Following are some commodity ETFs that investors can keep track of as the geopolitical crisis worsens: Teucrium Wheat Fund WEAT, Teucrium Corn Fund CORN and The VanEck Agribusiness ETF (MOO) (read: Best-Performing ETF Areas of February: Up At Least 20%).
Gold ETFs
Another space enjoying investors’ increased attention amid the Russia-Ukraine crisis is the yellow metal. According to Kenneth Lamont, senior fund analyst for passive strategies at Morningstar, “There are a couple of things playing into the gold story. I think it’s people hedging their risk and also the added bonus that it has historically provided some level of inflation protection,” as stated in a Financial Times article.
Considering the current scenario, gold prices have been rising. The inflationary backdrop in the United States is favorable for gold as the metal is viewed as a hedge against inflation.
Gold ETFs mostly move in tandem with gold prices. The SPDR Gold Shares GLD, iShares Gold Trust IAU, SPDR Gold MiniShares Trust (GLDM) and GraniteShares Gold Trust (BAR) are some of the popular ETFs (read: Top ETF Stories of February That Deserve a Watch in March).
Cybersecurity ETFs
Investors are paying great attention to cybersecurity stocks as these have been rallying amid the rising panic of cyberattacks. Market experts have warned about the possibility of cyberattacks by Russia in retaliation to Western sanctions. The West has been continuing to isolate Moscow by imposing several sanctions on Russian banks, its sovereign debt along with Russian President Vladimir Putin and Foreign Minister Sergey Lavrov. Notably, cyberattacks can be part of Russia’s war strategy. Several Ukrainian entities were hacked last week. Also, the increasing adoption of revolutionary technologies is exposing businesses, governments and organizations to cyber risks.
Investors seeking to tap the boom in the cyber security market could consider the following ETFs: ETFMG Prime Cyber Security ETF HACK, First Trust NASDAQ Cybersecurity ETF CIBR, Global X Cybersecurity ETF (BUG) and iShares Cybersecurity and Tech ETF (IHAK) (read: Why Cybersecurity ETFs are Rising amid Russia-Ukraine Crisis).
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SPDR Gold Shares (GLD): ETF Research Reports
iShares Gold Trust (IAU): ETF Research Reports
United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
ETFMG Prime Cyber Security ETF (HACK): ETF Research Reports
iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports
SPDR S&P Aerospace & Defense ETF (XAR): ETF Research Reports
Vanguard Energy ETF (VDE): ETF Research Reports
First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports
Teucrium Corn ETF (CORN): ETF Research Reports
Teucrium Wheat ETF (WEAT): ETF Research Reports
Invesco Dynamic Energy Exploration & Production ETF (PXE): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) make great investment choices (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports In fact, Ursula von der Leyen, president of the European Commission, has announced to finance the purchase and delivery of arms to Ukraine, amounting to about €450 million. | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) make great investment choices (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports Against the bullish energy sector backdrop, let’s take a look at some energy ETFs that are worth adding to your portfolio for boosting returns: Invesco Dynamic Energy Exploration & Production ETF PXE, Vanguard Energy ETF VDE, Fidelity MSCI Energy Index ETF (FENY), The Energy Select Sector SPDR Fund (XLE) and iShares U.S. Energy ETF (IYE) (read: Russia-Ukraine Crisis Powers Rally in Energy ETFs). | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) make great investment choices (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports In this regard, investors can consider ETFs like iShares U.S. Aerospace & Defense ETF ITA, SPDR S&P Aerospace & Defense ETF XAR, ARK Space Exploration & Innovation ETF (ARKX) andSPDR S&P Kensho Future Security ETF (FITE) (read: Russia Attacks Ukraine: ETF Areas Grabbing Investor Attention). | Against this backdrop, United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) make great investment choices (read: Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on). Invesco DB Oil ETF (DBO): ETF Research Reports Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. | bd9837da-9625-4fac-8f76-58fbd6d5b1c2 |
708893.0 | 2022-03-03 00:00:00 UTC | Oil Prices Drop as Iran Deal is Renegotiated | DBO | https://www.nasdaq.com/articles/oil-prices-drop-as-iran-deal-is-renegotiated | nan | nan | Oil prices dropped to $110 per barrel on Thursday after Russia’s invasion of Ukraine briefly led them to skyrocket to more than $116 per barrel for the first time since 2008.
The Wall Street Journal is reporting that the rally was deflated after the prospect of Iranian crude returning to the market was brought to light. The U.S., Britain, France, Germany, Russia, China, and Iran are currently in talks to restore a 2015 deal that lifted sanctions on Iran in exchange for restrictions on its nuclear program. Iran expanded its nuclear program after the U.S. left the deal in 2018. If the deal gets restored, Iran’s oil could help make up for the barrels from Russia that the rest of the world has rejected after the country invaded Ukraine.
This all has huge implications for the Invesco DB Oil Fund (DBO). DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. The single index commodity consists of light, sweet crude oil (WTI), and the fund invests in futures contracts to track its corresponding index.
With DBO, investors do not hold direct exposure to the heavy price volatility that comes with holding positions directly in the commodity itself.
DBO could also be used as an inflation hedge as consumer prices continue to push higher along with oil and gas.
“This ETF provides exposure to light sweet crude oil (WTI), which is the most popular oil benchmark in the world,” an ETF Database analysis says. “Commodity exposure in a portfolio used to be a binary choice, either one invested in them, or they did not. Now, commodities have been proven as powerful inflation hedging tools with the power to generate powerful returns for an individual portfolio.”
For more news, information, and strategy, visit the Innovative ETFs Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | DBO could also be used as an inflation hedge as consumer prices continue to push higher along with oil and gas. This all has huge implications for the Invesco DB Oil Fund (DBO). DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. | This all has huge implications for the Invesco DB Oil Fund (DBO). DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. With DBO, investors do not hold direct exposure to the heavy price volatility that comes with holding positions directly in the commodity itself. | DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. This all has huge implications for the Invesco DB Oil Fund (DBO). With DBO, investors do not hold direct exposure to the heavy price volatility that comes with holding positions directly in the commodity itself. | DBO seeks to track the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ-OY CL ER), which is intended to reflect the changes in market value of crude oil. This all has huge implications for the Invesco DB Oil Fund (DBO). With DBO, investors do not hold direct exposure to the heavy price volatility that comes with holding positions directly in the commodity itself. | 983bc4f0-8043-46e1-a4c6-f91ece85ae2a |
708894.0 | 2022-03-02 00:00:00 UTC | 5 ETF Areas to Consider Amid the Ukraine-Russia War Saga | DBO | https://www.nasdaq.com/articles/5-etf-areas-to-consider-amid-the-ukraine-russia-war-saga | nan | nan | Wall Street has just wrapped up a dull February as the three major indices ended the month in the red. Immense volatility has also been observed on the bourses. The Russia-Ukraine war saga continues as talks between the representatives of the countries ended without any strong resolution. At the same time, reports state that Russia continues to attack Ukraine while the latter’s soldiers and civilians are trying to resist the invasion in key cities. A BBC report states that satellite images show that about a 40-mile-long convoy of Russian armor is moving toward Ukraine's capital Kyiv.
In response to the invasion, the sanctions on Moscow continue to pile up. The European Union has informed about imposing sanctions against more than two dozen Russians, including President Vladimir Putin’s press secretary (per a CNBC article). These sanctions have been imposed aiming at the oil oligarchs, Kremlin officials, propagandists, military figures and bankers that play influential roles in supporting Moscow’s economy.
There is no doubt that Kremlin’s move is being widely condemned by global leaders, military specialists and grassroots protesters along with leading to fierce outrages. Even their local people are not supporting Russia’s move.
Going by the data issued by Ukraine’s Ministry of Foreign Affairs on Feb 28, Russian forces witnessed great losses of about 4,500 personnel, almost 200 tanks and approximately 60 aircraft.
Against this backdrop, let’s take a look at some ETF areas that can be good investment options amid the Russia-Ukraine conflict:
Commodity ETFs
The Russia-Ukraine geopolitical tensions have put the global commodity markets on edge. There is no denying that Russia and Ukraine hold important positions as producers in the global commodities market. Thus, the escalation in tensions has sparked a rally in a broad range of commodities.
The latest developments can slow down production activities and impact the export of commodities and goods. This is true as the tensions have led to supply-disruption fears in an already-tight commodity market. A surge in prices of crude, natural gas, grains and metals has already been witnessed.
It is important to note that commodity ETFs mostly hold futures and there could be roll costs or yields involved. Therefore, these ETFs are more suitable for short-term trading or hedging activities.
Here are some commodity ETFs that can be considered as the geopolitical crisis worsens: Teucrium Wheat Fund WEAT, iShares S&P GSCI Commodity-Indexed Trust GSG, Teucrium Corn Fund (CORN) and First Trust Global Tactical Commodity Strategy Fund (FTGC) (read: Russia-Ukraine Tensions Flare Up: ETF Strategies to Win).
Quality ETFs
Quality stocks are rich in value characteristics with a healthy balance sheet, high return on capital, low volatility and high margins. These stocks also have a track record of stable or increasing sales and earnings growth. In comparison to plain vanilla funds, these products help lower volatility and perform rather well during market uncertainty. Further, academic research has proven that high-quality companies constantly provide better risk-adjusted returns than the broader market over the long term.
Given this, we have highlighted some ETFs like iShares MSCI USA Quality Factor ETF QUAL, Invesco S&P 500 Quality ETF SPHQ, FlexShares Quality Dividend Index Fund (QDF), SPDR MSCI USA StrategicFactors ETF (QUS) and Barron's 400 ETF (BFOR) targeting this niche strategy. These could enjoy smooth trading and generate market-beating returns in the current market environment (read: 4 ETFs to Invest in on Rising Market Volatility).
Low-Volatility ETFs
Demand for funds with “low volatility” or “minimum volatility” generally increases during tumultuous times. These seemingly-safe products usually do not surge in bull market conditions but offer more protection than the unpredictable ones. Providing more stable cash flow than the overall market, these funds are less cyclical in nature. Here are some options -- iShares MSCI USA Min Vol Factor ETF USMV, Invesco S&P 500 Low Volatility ETF SPLV, iShares MSCI Global Min Vol Factor ETF (ACWV) and Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) (read: 5 Low-Volatility ETFs to Bet on Rising Worries).
Oil ETFs
Oil prices have been rallying amid the Russia-Ukraine geopolitical crisis as the oil futures prices rose to a more than seven-year high on Feb 28. Russia’s move is leading to a rise in oil prices as it is among the world’s largest suppliers of oil and natural gas. Russia is the world’s second-largest oil producer. European refineries procure most of their crude oil supplies from Russia. Notably, Russia also provides about two-fifths of its natural gas supply to Europe. In fact, Russia emerged as the largest natural gas and oil supplier to the European Union in 2021. Not only crude oil but the prolonged war between Ukraine and Russia can also result in constrained supplies of edible oil.
Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs like United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) (see all Energy ETFs here)
Cybersecurity ETFs
Investors are paying great attention to cybersecurity stocks as these have been rallying amid the rising panic of cyberattacks. Market experts have warned about the possibility of cyberattacks by Russia in retaliation to Western sanctions. The West has been continuing to isolate Moscow by imposing several sanctions on Russian banks, its sovereign debt along with Russian President Vladimir Putin and Foreign Minister Sergey Lavrov. Notably, cyberattacks can be part of Russia’s war strategy. Several Ukrainian entities were hacked last week. Also, the increasing adoption of revolutionary technologies is exposing businesses, governments and organizations to cyber risks.
Investors seeking to tap the boom in the cyber security market could consider the following ETFs: ETFMG Prime Cyber Security ETF HACK, First Trust NASDAQ Cybersecurity ETF CIBR, Global X Cybersecurity ETF (BUG) and iShares Cybersecurity and Tech ETF (IHAK).
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
ETFMG Prime Cyber Security ETF (HACK): ETF Research Reports
iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports
Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports
iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
First Trust NASDAQ Cybersecurity ETF (CIBR): ETF Research Reports
Invesco S&P 500 Low Volatility ETF (SPLV): ETF Research Reports
Teucrium Wheat ETF (WEAT): ETF Research Reports
iShares S&P GSCI CommodityIndexed Trust (GSG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs like United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) (see all Energy ETFs here) Cybersecurity ETFs Investors are paying great attention to cybersecurity stocks as these have been rallying amid the rising panic of cyberattacks. Invesco DB Oil ETF (DBO): ETF Research Reports The European Union has informed about imposing sanctions against more than two dozen Russians, including President Vladimir Putin’s press secretary (per a CNBC article). | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs like United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) (see all Energy ETFs here) Cybersecurity ETFs Investors are paying great attention to cybersecurity stocks as these have been rallying amid the rising panic of cyberattacks. Invesco DB Oil ETF (DBO): ETF Research Reports Here are some commodity ETFs that can be considered as the geopolitical crisis worsens: Teucrium Wheat Fund WEAT, iShares S&P GSCI Commodity-Indexed Trust GSG, Teucrium Corn Fund (CORN) and First Trust Global Tactical Commodity Strategy Fund (FTGC) (read: Russia-Ukraine Tensions Flare Up: ETF Strategies to Win). | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs like United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) (see all Energy ETFs here) Cybersecurity ETFs Investors are paying great attention to cybersecurity stocks as these have been rallying amid the rising panic of cyberattacks. Invesco DB Oil ETF (DBO): ETF Research Reports Here are some options -- iShares MSCI USA Min Vol Factor ETF USMV, Invesco S&P 500 Low Volatility ETF SPLV, iShares MSCI Global Min Vol Factor ETF (ACWV) and Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) (read: 5 Low-Volatility ETFs to Bet on Rising Worries). | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs like United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund (BNO) and United States 12 Month Oil Fund (USL) (see all Energy ETFs here) Cybersecurity ETFs Investors are paying great attention to cybersecurity stocks as these have been rallying amid the rising panic of cyberattacks. Invesco DB Oil ETF (DBO): ETF Research Reports Against this backdrop, let’s take a look at some ETF areas that can be good investment options amid the Russia-Ukraine conflict: Commodity ETFs The Russia-Ukraine geopolitical tensions have put the global commodity markets on edge. | d48c5b6f-b04a-4782-9d19-04159102cc9e |
708895.0 | 2022-03-01 00:00:00 UTC | Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on | DBO | https://www.nasdaq.com/articles/oil-rallies-amid-russia-ukraine-crisis%3A-etfs-to-bet-on-0 | nan | nan | Oil prices have been rallying amid the Russia-Ukraine geopolitical crisis. The West Texas Intermediate (WTI) futures recently increased 6.06% to $97.14 per barrel in Asia trade. Also, the global benchmark Brent crude oil has risen 5.24% to $103.06 per barrel.
Russian President Vladimir Putin has launched a military operation in Ukraine on early Feb 24. In response, Ukraine's President Volodymyr Zelensky has imposed martial law across the country. The West has continued to isolate Moscow by imposing several sanctions on Russian banks, its sovereign debt, and Russian President Putin and Foreign Minister Sergey Lavrov.
In the latest development, representatives for Ukraine and Russia have given the nod for peace talks on the Ukraine-Belarus border without imposing any preconditions, per Ukraine’s Defense Ministry. Meanwhile, Putin asked his country’s nuclear deterrence forces to remain on high alert on Feb 27. Apart from putting economic sanctions, countries have been extending their support to Ukraine by closing their airspace to Russian aircraft.
Russia’s move is leading to a rise in oil prices as it is among the world’s largest suppliers of oil and natural gas. Russia stands as the world’s second-largest oil producer. European refineries procure most of their crude oil supplies from Russia. Notably, Russia also provides about two-fifths of its natural gas supply to Europe. In fact, Russia emerged as the largest natural gas and oil supplier to the European Union in 2021. Not only crude oil but the prolonged war between Ukraine and Russia can also result in constrained supplies of edible oil.
Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here): United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund BNO and United States 12 Month Oil Fund USL.
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here): United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund BNO and United States 12 Month Oil Fund USL. Invesco DB Oil ETF (DBO): ETF Research Reports The West Texas Intermediate (WTI) futures recently increased 6.06% to $97.14 per barrel in Asia trade. | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here): United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund BNO and United States 12 Month Oil Fund USL. Invesco DB Oil ETF (DBO): ETF Research Reports United States 12 Month Oil ETF (USL): ETF Research Reports | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here): United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund BNO and United States 12 Month Oil Fund USL. Invesco DB Oil ETF (DBO): ETF Research Reports United States Oil ETF (USO): ETF Research Reports | Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here): United States Oil Fund USO, Invesco DB Oil Fund DBO, United States Brent Oil Fund BNO and United States 12 Month Oil Fund USL. Invesco DB Oil ETF (DBO): ETF Research Reports Russian President Vladimir Putin has launched a military operation in Ukraine on early Feb 24. | 8a70ebaf-0c57-4e25-850d-c54e2a703397 |
708896.0 | 2022-02-24 00:00:00 UTC | Oil Rallies Amid Russia-Ukraine Crisis: ETFs to Bet on | DBO | https://www.nasdaq.com/articles/oil-rallies-amid-russia-ukraine-crisis%3A-etfs-to-bet-on | nan | nan | Oil prices have been rallying amid the Russia-Ukraine geopolitical crisis. The West Texas Intermediate (WTI) has increased 7% to $98.53 per barrel. Also, the global benchmark Brent crude oil has risen 7.3% to $103.91 per barrel, surpassing the $100 level for the first time since 2014.
According to the latest updates, Russian President Vladimir Putin has launched a military operation in Ukraine on early Feb 24. In response, Ukraine's President Volodymyr Zelensky has imposed martial law across the country. Going on, Ukraine's Interior Ministry has informed about the beginning of Russia's invasion. Several reports are highlighting Russia’s troops crossing the border and explosions in various cities, including the capital Kyiv.
Russia has begun an all-out invasion of Ukraine by all the routes, including land, air and sea. It is considered the biggest attack launched by a state against another in Europe since World War II, per a Reuters article.
Russia’s move is leading to a rise in oil prices as it is among the world’s largest suppliers of oil and natural gas. In this regard, UBS analyst Giovanni Staunovo has said that "Russia is the third largest oil producer, and second largest oil exporter. Given low inventories and dwindling spare capacity, the oil market cannot afford large supply disruptions," according to the same article mentioned above.
Also, market experts believe Brent will remain above $100 per barrel unless other sources of supplies are made available from OPEC, U.S. shale, or Iran.
President Joe Biden has already informed about imposing sanctions on the major Russian bank VEB as well as its military bank, the country’s sovereign debt and on three wealthy individuals (two of them are the sons of high-ranking Russian government officials). According to the sources, the imposition of bank sanctions will forbid American financial institutions from dealing out transactions for VEB along with Russia’s military bank, PSB.
Regarding the sanctions on sovereign debt, President Biden has mentioned that “That means we’ve cut off Russia’s government from Western financing. It can no longer raise money from the West and cannot trade its new debt on our markets, or European markets either,” per a CNBC article.
Taking their stand against Russia, the U.K. has also announced the first tranche of economic sanctions aiming at five Russian Banks — Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank. Going on, the U.K. is imposing sanctions on three very wealthy individuals, namely, Gennady Timchenko, Boris Rotenberg and Igor Rotenberg.
Oil ETFs That Might Gain
There are other factors as well supporting the oil prices. The coronavirus vaccine rollout is gradually helping control the outbreak's spread across the globe. The optimism surrounding the gradual reopening of global economies and increasing demand is painting a rosy picture for cyclical sectors.
Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here):
United States Oil Fund USO
The United States Oil Fund’s investment objective is for the daily changes, in percentage terms, of its shares’ net asset value (NAV) to reflect the daily changes, in percentage terms, of the spot price of light sweet crude oil delivered to Cushing, OK, as measured by the daily changes in the Benchmark Oil Futures Contract (read: 5 Sector ETFs to Play if Russia-Ukraine Geopolitics Rule).
AUM: $2.66 billion
Total Expense Ratio: 0.83%
Invesco DB Oil Fund DBO
The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses.
AUM: $490.5 million
Total Expense Ratio: 0.77%
United States Brent Oil Fund BNO
The fund tracks the daily price movement of Brent crude oil (read: 5 Leveraged Energy ETFs to Play Russia-Ukraine Tensions).
AUM: $251.7 million
Total Expense Ratio: 1.13%
United States 12 Month Oil Fund USL
The fund replicates, with possible accuracy, the price movements of West Texas Intermediate light, sweet crude oil (read: 3 Oil ETFs to Ride the Crude Rally).
AUM: $148.6 million
Total Expense Ratio: 0.88%
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United States Oil ETF (USO): ETF Research Reports
Invesco DB Oil ETF (DBO): ETF Research Reports
United States 12 Month Oil ETF (USL): ETF Research Reports
United States Brent Oil ETF (BNO): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AUM: $2.66 billion Total Expense Ratio: 0.83% Invesco DB Oil Fund DBO The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses. Invesco DB Oil ETF (DBO): ETF Research Reports Given low inventories and dwindling spare capacity, the oil market cannot afford large supply disruptions," according to the same article mentioned above. | AUM: $2.66 billion Total Expense Ratio: 0.83% Invesco DB Oil Fund DBO The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses. Invesco DB Oil ETF (DBO): ETF Research Reports Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here): United States Oil Fund USO The United States Oil Fund’s investment objective is for the daily changes, in percentage terms, of its shares’ net asset value (NAV) to reflect the daily changes, in percentage terms, of the spot price of light sweet crude oil delivered to Cushing, OK, as measured by the daily changes in the Benchmark Oil Futures Contract (read: 5 Sector ETFs to Play if Russia-Ukraine Geopolitics Rule). | AUM: $2.66 billion Total Expense Ratio: 0.83% Invesco DB Oil Fund DBO The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses. Invesco DB Oil ETF (DBO): ETF Research Reports Against this backdrop, investors can take a closer look at the oil commodity space and its related ETFs (see all Energy ETFs here): United States Oil Fund USO The United States Oil Fund’s investment objective is for the daily changes, in percentage terms, of its shares’ net asset value (NAV) to reflect the daily changes, in percentage terms, of the spot price of light sweet crude oil delivered to Cushing, OK, as measured by the daily changes in the Benchmark Oil Futures Contract (read: 5 Sector ETFs to Play if Russia-Ukraine Geopolitics Rule). | AUM: $2.66 billion Total Expense Ratio: 0.83% Invesco DB Oil Fund DBO The fund tracks changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the holdings of primarily U.S. Treasury securities and money-market income-less fund’s expenses. Invesco DB Oil ETF (DBO): ETF Research Reports President Joe Biden has already informed about imposing sanctions on the major Russian bank VEB as well as its military bank, the country’s sovereign debt and on three wealthy individuals (two of them are the sons of high-ranking Russian government officials). | 51596e69-d4d6-4c8d-9cc2-361822af7c8b |
708897.0 | 2022-02-16 00:00:00 UTC | The ECB and Economic Data Put the EUR and the USD in the Spotlight | DBO | https://www.nasdaq.com/articles/the-ecb-and-economic-data-put-the-eur-and-the-usd-in-the-spotlight | nan | nan | FXEmpire.com -
Earlier in the Day:
It was a busier start to the Asian session. The Japanese Yen and the Aussie Dollar were in action in the early hours of the day. Going into the Asian open, the markets also responded to the FOMC meeting minutes from overnight.
For the Japanese Yen
In January, Japan’s trade deficit widened from ¥583.3bn to ¥2,191.1bn. According to figures released by the Ministry of Finance,
Exports increased by 9.6% year-on-year.
Exports to China fell by 5.4%, while exports to the U.S were up 11.5%.
Imports surged by 39.6%, however, leading to the widening of the trade deficit.
Imports from China increased by 23.7%, with imports from the U.S up 33.4% year-on-year.
The Japanese Yen moved from ¥115.371 to ¥115.339 in response to the trade data. At the time of writing, the Japanese Yen was up by 0.03% to ¥115.490 against the U.S Dollar.
For the Aussie Dollar
Employment figures for January drew plenty of interest this morning. In January, employment rose by 12.9k, leaving the unemployment rate unchanged at 4.2%. Economists had forecast a 15k fall in employment and for the unemployment rate to hold steady.
According to the ABS,
Full employment fell by 17k, partially reversing a 41.5k increase from December.
Compared with March 2020, the number of unemployed was 143,200 lower.
The participation rate increased by 1 point to 66.2%.
The Aussie Dollar moved from $0.72069 to $0.72061 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.03% to $0.7197.
Elsewhere
At the time of writing, the Kiwi Dollar was up by 0.13% to $0.6688.
The Day Ahead
For the EUR
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.
While there are no stats to consider, the ECB Economic Bulletin and ECB member chatter will draw interest. ECB member Lane is scheduled to speak late in the day.
At the time of writing, the EUR was up by 0.03% to $1.1376.
For the Pound
It’s also a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction. The lack of stats will leave market sentiment towards BoE monetary policy to provide Pound support.
At the time of writing, the Pound was down by 0.02% to $1.3583.
Across the Pond
Jobless claims and Philly FED Manufacturing numbers will be in focus. Barring dire manufacturing numbers, expect the jobless claims figures to be key.
Other stats on the day include housing sector data that should have a muted impact on the Dollar.
At the time of writing, the U.S Dollar Spot Index was up by 0.10% to 95.793.
For the Loonie
There are no major stats due out of Canada to provide the Loonie with direction. The lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices on the day.
At the time of writing, the Loonie was down by 0.09% to C$1.2699 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The lack of stats will leave market sentiment towards BoE monetary policy to provide Pound support. The lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices on the day. This article was originally posted on FX Empire More From FXEMPIRE: The Weekly Wrap – Russia Invasion Overshadows Economic Data Crude Oil Markets Break Down a Bit Heading Into the Weekend Terra (LUNA) Targets $80 After Yet Another Breakout The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the Japanese Yen In January, Japan’s trade deficit widened from ¥583.3bn to ¥2,191.1bn. For the Aussie Dollar Employment figures for January drew plenty of interest this morning. This article was originally posted on FX Empire More From FXEMPIRE: The Weekly Wrap – Russia Invasion Overshadows Economic Data Crude Oil Markets Break Down a Bit Heading Into the Weekend Terra (LUNA) Targets $80 After Yet Another Breakout The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At the time of writing, the Japanese Yen was up by 0.03% to ¥115.490 against the U.S Dollar. At the time of writing, the Aussie Dollar was up by 0.03% to $0.7197. The Day Ahead For the EUR It’s a particularly quiet day ahead on the economic calendar. | The Japanese Yen moved from ¥115.371 to ¥115.339 in response to the trade data. The participation rate increased by 1 point to 66.2%. At the time of writing, the Pound was down by 0.02% to $1.3583. | accc4d91-fca7-4675-8230-8a2bac3c81e1 |
708898.0 | 2022-02-08 00:00:00 UTC | Economic Data Keeps the EUR in Focus Mid-Week | DBO | https://www.nasdaq.com/articles/economic-data-keeps-the-eur-in-focus-mid-week | nan | nan | FXEmpire.com -
Earlier in the Day:
It was a quieter start to the Asian session on the economic calendar. The Aussie Dollar was in action in the early hours of this morning.
For the Aussie Dollar
Consumer Confidence weakened in February, with the Westpac Confidence Index falling by 1.3% to 100.8. In January, the Index had fallen by 2.0% to 102.2.
According to the February Survey,
While sentiment towards the economic outlook improved, assessment of family finances deteriorated.
This was likely as a result of rising consumer prices, driven by Omicron-related disruptions to activity and earnings early in the year. The prospect of rising interest rates was an added negative.
Looking at the sub-components
Family finances vs a year ago slid by 9.3% to 86.8, while finances next 12-months slipped by 1.5% to 106.4. Both fell below their long-run averages in February.
Economic conditions next 12-months rose by 2.5% to 97.1, with economic conditions next 5-years up 1.5% to 105.2.
The Unemployment Expectations Index fell by 8.7% to 102.8, which was aligned with sentiment towards economic conditions.
The Aussie Dollar moved from $0.71466 to $0.71472 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.10% to $0.7153.
Elsewhere
At the time of writing, the Kiwi Dollar was down by 0.08% to $0.6645, while the Japanese Yen was up by 0.13% to ¥115.400 against the U.S Dollar
The Day Ahead
For the EUR
It’s a relatively quiet day ahead on theeconomic calendar German trade data and Italian industrial production figures will be in focus later today. Barring particularly dire numbers from Italy, expect Germany’s trade data to be key.
At the time of writing, the EUR was up by 0.11% to $1.1428.
For the Pound
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK for the markets to consider. The lack of stats will continue to leave UK politics in focus.
At the time of writing, the Pound was up by 0.11% to $1.3558.
Across the Pond
It’s a quiet day on theeconomic calendar with no material stats due out of the U.S to provide the markets with direction.
At the time of writing, the U.S Dollar Spot Index was down by 0.11% to 95.535.
For the Loonie
It’s also a quiet day ahead. There are no material stats due out of Canada to provide the Loonie with direction. The lack of stats will leave crude oil inventories in focus on the day.
At the time of writing, the Loonie was up by 0.05% to C$1.2702 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This was likely as a result of rising consumer prices, driven by Omicron-related disruptions to activity and earnings early in the year. Elsewhere At the time of writing, the Kiwi Dollar was down by 0.08% to $0.6645, while the Japanese Yen was up by 0.13% to ¥115.400 against the U.S Dollar The Day Ahead For the EUR It’s a relatively quiet day ahead on theeconomic calendar German trade data and Italian industrial production figures will be in focus later today. Across the Pond It’s a quiet day on theeconomic calendar with no material stats due out of the U.S to provide the markets with direction. | For the Aussie Dollar Consumer Confidence weakened in February, with the Westpac Confidence Index falling by 1.3% to 100.8. Elsewhere At the time of writing, the Kiwi Dollar was down by 0.08% to $0.6645, while the Japanese Yen was up by 0.13% to ¥115.400 against the U.S Dollar The Day Ahead For the EUR It’s a relatively quiet day ahead on theeconomic calendar German trade data and Italian industrial production figures will be in focus later today. Across the Pond It’s a quiet day on theeconomic calendar with no material stats due out of the U.S to provide the markets with direction. | At the time of writing, the Aussie Dollar was up by 0.10% to $0.7153. Elsewhere At the time of writing, the Kiwi Dollar was down by 0.08% to $0.6645, while the Japanese Yen was up by 0.13% to ¥115.400 against the U.S Dollar The Day Ahead For the EUR It’s a relatively quiet day ahead on theeconomic calendar German trade data and Italian industrial production figures will be in focus later today. Across the Pond It’s a quiet day on theeconomic calendar with no material stats due out of the U.S to provide the markets with direction. | The Unemployment Expectations Index fell by 8.7% to 102.8, which was aligned with sentiment towards economic conditions. Elsewhere At the time of writing, the Kiwi Dollar was down by 0.08% to $0.6645, while the Japanese Yen was up by 0.13% to ¥115.400 against the U.S Dollar The Day Ahead For the EUR It’s a relatively quiet day ahead on theeconomic calendar German trade data and Italian industrial production figures will be in focus later today. Across the Pond It’s a quiet day on theeconomic calendar with no material stats due out of the U.S to provide the markets with direction. | eeafc403-69bc-4ca7-bb14-766de015ee0d |
708899.0 | 2022-02-05 00:00:00 UTC | The Week Ahead – Central Bank Chatter, Economic Data, and Geopolitics in Focus | DBO | https://www.nasdaq.com/articles/the-week-ahead-central-bank-chatter-economic-data-and-geopolitics-in-focus | nan | nan | FXEmpire.com -
On the Macro
It’s a quiet week ahead on the economic calendar, with 30 stats in focus in the week ending 11th February. In the week prior, 76 stats had been in focus.
For the Dollar:
Early in the week, stats are limited to December trade data that will have a muted impact on the markets.
On Thursday, January inflation and weekly jobless claims figures will be key, however.
At the end of the week, we can also expect some sensitivity to consumer sentiment numbers for February.
In the week ending 4th February, the Dollar Spot Index slid by 1.84% to 95.485.
For the EUR:
The German economy will be in focus in a quiet week on the economic data front.
Key stats include industrial production and trade data due out on Monday and Wednesday. With little else for the markets to consider, expect the numbers to influence.
From the ECB, Economic Forecasts due out on Thursday will have a material impact on the EUR.
For the week, the EUR jumped by 2.67% to $1.1449.
For the Pound:
It’s a relatively busy week ahead on the economic calendar. Industrial production, trade data, and GDP numbers are due out on Friday. Expect the GDP and production figures to be key.
Other stats include housing sector numbers that should have a muted impact on the Pound.
On the monetary policy front, BoE Governor Bailey could also move dial in a speech scheduled late Thursday.
The Pound rose by 0.97% to end the week at $1.3531.
For the Loonie:
It’s a particularly quiet week ahead, with December trade data due out on Tuesday. With little else for the markets to consider, expect market risk sentiment and crude oil prices to also influence.
On the monetary policy front, BoC Governor Macklem could influence on Wednesday following disappointing stats last week.
The Loonie ended the week up 0.10% to C$1.2757 against the U.S Dollar.
From the Asia Pacific
For the Aussie Dollar:
Business and consumer sentiment will be in focus on Tuesday and Wednesday. Both sets of numbers will need to reflect improved sentiment to support the Aussie Dollar. Business investment and consumer spending remain key to the economic outlook.
The Aussie Dollar rose by 1.20% to $0.7072.
For the Kiwi Dollar:
Mid-week, inflation expectations will be in focus ahead of key stats on Friday.
Business PMI and electronic card retail sales figures are due out on Friday. While the Business PMI will influence, electronic card retail sales will likely have the greater impact on the day.
The Kiwi Dollar ended the week up by 1.30% to $0.6633.
For the Japanese Yen:
It’s a quiet week ahead, with household spending figures due out. While the numbers will draw plenty of interest, there’s unlikely to be an impact on the Japanese Yen in the week.
The Japanese Yen held steady at ¥115.260 against the U.S Dollar.
Out of China
In a quiet week ahead, Caixin Service and composite PMI figures for January will be in focus on Monday. Following disappointing NBS numbers, a marked fall in the services PMI would test support for riskier assets.
Geo-Politics
Chatter from Russia and the U.S will need tracking along with any news from China and the Middle East.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For the Dollar: Early in the week, stats are limited to December trade data that will have a muted impact on the markets. On the monetary policy front, BoE Governor Bailey could also move dial in a speech scheduled late Thursday. Out of China In a quiet week ahead, Caixin Service and composite PMI figures for January will be in focus on Monday. | FXEmpire.com - On the Macro It’s a quiet week ahead on the economic calendar, with 30 stats in focus in the week ending 11th February. Key stats include industrial production and trade data due out on Monday and Wednesday. Business PMI and electronic card retail sales figures are due out on Friday. | FXEmpire.com - On the Macro It’s a quiet week ahead on the economic calendar, with 30 stats in focus in the week ending 11th February. For the Dollar: Early in the week, stats are limited to December trade data that will have a muted impact on the markets. Out of China In a quiet week ahead, Caixin Service and composite PMI figures for January will be in focus on Monday. | At the end of the week, we can also expect some sensitivity to consumer sentiment numbers for February. With little else for the markets to consider, expect the numbers to influence. Out of China In a quiet week ahead, Caixin Service and composite PMI figures for January will be in focus on Monday. | 09702f2a-84b3-44e7-8496-8151b76a5f5b |
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