Latest news with #SPHB
Mint
26-06-2025
- Business
- Mint
Stock investors are embracing risk on the cusp of new highs
Forget TACOs and memes, we're in the era of the YOLO trade. War, tariffs, a spending bill that adds to the ballooning U.S. deficit. There have been no shortages of major worries for the market lately, and yet stocks seem to continually shrug off each new worry, with the S&P 500 trading comfortably over 6,000 and not far from its all-time high. The philosophy that 'you only live once' encourages people to embrace risk and take chances while they can. That idea might help explain why investors have been so relentlessly optimistic recently, despite a barrage of headlines that might have been expected to bring the mood down. The S&P 500 High Beta Index, which measures the performance of 100 constituents in the S&P 500 that are most sensitive to changes in market returns, is a good example. It, along with the Invesco S&P 500 High Beta exchange-traded fund, are up well over 6% this past month, and SPHB has soared more than 41% since the April 8 post-Liberation Day lows. That compares to the S&P 500, which is up 2.9% in the past month and has risen some 22% from April 8, and the iShares MSCI USA Quality Factor ETF, which is up an anemic 1.2% in the past month and just under 18% since April 8. Investors might have expected just the opposite, with so many potential geopolitical and domestic boogeymen in the background. Still, the moves do make sense in light of the ongoing artificial-intelligence trade and the initial tariff meltdown. Capex spending is usually a negative for tech stocks, notes Joseph Mezrich, founder of investment strategy firm Metafoura, but has actually been a driver over the past month: 'The positive turn for capex spending in large-cap tech likely reflects investors' view that the massive capex spending for AI is now a good thing. That would show up as a positive for beta (and tech).' The SPHB is, not surprisingly, heavily weighted toward the tech sector, with plenty of semiconductor companies that have benefited from the resurgence of AI enthusiasm, notes Adam Turnquist, chief technical strategist for LPL Financial. So with the Nasdaq Composite up just over 4% in the past month and the iShares Semiconductor ETF rising some 12.5%, it isn't surprising that the high-beta ETF has also been taken along for the ride. Yet we're also still feeling the impact of the tariff rollercoaster, he says: High-beta stocks were one of the most oversold categories after the Liberation Day announcement, SPHB was 'a logical spot' for anyone who was looking to 'add risk and have a high tolerance for volatility.' Moreover, the tariffs were just one of a long series of events coming out of Donald Trump's administration that would have been shocking under any other leader, but have now become commonplace—to the point that investors are getting desensitized to his bombastic moves. 'Investors are acclimating to the Trump White House, so the shock factor has worn off a little and the headlines get a little less potent,' Turnquist says. There are some other contributing factors, too, he notes: Investors have been positively conditioned to buy the dip in recent years, there is optimism that the government is moving more toward pro-growth policies, the first-quarter earnings season wasn't nearly as bad as expected, and Treasury yields have backed off from their highs. Overall though, investors just seem interested in taking the bull market by the horns. Write to Teresa Rivas at
Yahoo
29-05-2025
- Business
- Yahoo
Court Ruling Lifts Markets: High Beta, Momentum ETFs in Focus
Wall Street welcomed the U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency powers law. The ruling has eased investor concerns over trade policy, spreading huge optimism in the global stock market. The enthusiasm was further bolstered by strong earnings from artificial intelligence powerhouse NVIDIA such a scenario, high-beta and high-momentum products are expected to outperform and are intriguing choices for a short spell. These include Invesco S&P 500 High Beta ETF SPHB, iShares MSCI USA Momentum Factor ETF MTUM, Invesco S&P MidCap Momentum ETF XMMO, Invesco S&P 500 Momentum ETF (SPMO) and Invesco S&P SmallCap Momentum ETF ETFs experience larger gains than their broader market counterparts in a bullish market, while momentum investing looks to capture profits from buying hot stocks, which have shown an uptrend over a few weeks or months (read: Time to Capitalize on Market Moves With Momentum ETFs?). The U.S. Court of International Trade delivered a significant legal setback to President Donald Trump's trade policy by ruling that he overstepped his authority in imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. The court's unanimous decision invalidated the "Liberation Day" tariffs, which included a 10% baseline tariff on most imports and higher tariffs on goods from countries with significant trade surpluses, such as China and the European ruling marks a significant de-escalation in U.S. trade protectionism, with immediate benefits for import-heavy industries and the broader equity market. NVIDIA posted record-breaking fiscal first-quarter 2026 revenues, which topped estimates, driven by a booming data center business. Data Center revenues, which account for much of NVIDIA's revenues, jumped 73% year over year to $39.1 billion. The report has reignited investor optimism, shifting focus back to the potential of AI. The European Union agreed to accelerate tariff negotiations with the United States, easing fears of a trans-Atlantic trade war. The decision came after President Trump announced that the United States would postpone the implementation of a 50% tariff increase on all EU products, from June 1 to July 9, to allow time for further a social media post on Friday, Trump threatened to impose a 50% tariff on EU goods, criticizing the 27-member bloc as 'very difficult to deal with' on trade and claiming that negotiations were 'going nowhere' (read: EU-US Trade Deal Hopes to Boost These ETFs). Invesco S&P 500 High Beta ETF (SPHB) Invesco S&P 500 High Beta ETF tracks the performance of 101 stocks from the S&P 500 Index with the highest beta over the past 12 months. About 42.2% of the portfolio is allotted to information technology, while industrials and consumer discretionary round off the next two spots with a double-digit allocation each. Invesco S&P 500 High Beta ETF has amassed $390.7 million in its asset base and charges 0.25% in expense ratio. The ETF trades in an average daily volume of 375,000 MSCI USA Momentum Factor ETF (MTUM)iShares MSCI USA Momentum Factor ETF follows the MSCI USA Momentum SR Variant Index, holding 123 stocks and exhibiting a relatively higher price momentum. It is skewed toward the financials and information technology sector, with at least 23%, while industrials, consumer staples and communication round off the next three positions. iShares MSCI USA Momentum Factor ETF has accumulated $17 billion in its asset base and trades in a solid volume of about 1 million shares a day and charges 15 bps in fees per S&P MidCap Momentum ETF (XMMO) Invesco S&P MidCap Momentum ETF follows the S&P Midcap 400 Momentum Index, which is designed to identify mid-cap firms having the highest momentum scores. It holds 78 stocks in its basket, with key holdings in financials, industrials, and consumer staples. Invesco S&P MidCap Momentum ETF has AUM of $3.8 billion and charges 39 bps in annual fees. It trades in an average daily volume of 200,000 shares and has a Zacks ETF Rank #2 (Buy).Invesco S&P 500 Momentum ETF (SPMO)Invesco S&P 500 Momentum ETF tracks the S&P 500 Momentum Index, which measures the performance of stocks in the S&P 500 index that have a high "momentum score.' It holds 100 securities in its basket and charges 13 bps in fees per year. Information technology and financials are the top sectors with at least 20% share each, while consumer discretionary, communication services and consumer staples also receive double-digit allocations. Invesco S&P 500 Momentum ETF has an AUM of $7.7 billion and trades in an average daily volume of 1.5 million S&P SmallCap Momentum ETF (XSMO)Invesco S&P SmallCap Momentum ETF offers exposure to companies in the S&P SmallCap 600 Index having the highest 'momentum scores.' It tracks the S&P Smallcap 600 Momentum Index, holding 118 stocks in its basket with key holdings in financials, industrials, and consumer discretionary. Invesco S&P SmallCap Momentum ETF has gathered $1.5 billion in its asset base and charges 39 bps in annual fees. The fund trades in an average daily volume of 230,000 shares and has a Zacks ETF Rank #3 (Hold) (read: 3 Factors That Could Give Struggling Small-Cap ETFs a Boost). 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Momentum Factor ETF (MTUM): ETF Research Reports Invesco S&P 500 High Beta ETF (SPHB): ETF Research Reports Invesco S&P MidCap Momentum ETF (XMMO): ETF Research Reports Invesco S&P SmallCap Momentum ETF (XSMO): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
