Biotech & Crypto – Top ETF Domains of the Last Week – August 8, 2022

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Biotech & Crypto – Top ETF Domains of the Last Week – August 8, 2022

Wall Street was subdued last week. The S&P 500 (+0.4%), the Dow Jones (-0.13%), the Nasdaq (+2.2%) and the Russell 2000 (+1.94%) delivered a mixed performance last week . Some segments recorded a rebound such as technology, clean energy and small caps.

While the Fed has indicated it will slow future rate hikes, the surge in Treasury yields has moderated. This has benefited growth stocks like technology. The small-cap index is now at its lowest level against the large-cap Russell 1000 since March 2020, according to data from Jefferies, giving every reason to hunt for bargains, cited on Reuters. Things are looking up for pint-sized stocks as they have less domestic exposure and outperform in a rising greenback environment (read: Small Cap ETFs: Value Play or Value Trap?).

Clean energy stocks surged recently after Senate Majority Leader Chuck Schumer and Sen. Joe Manchin reached an agreement on the Cut Inflation Act of 2022. This bill aims to boost national energy production and reduce carbon emissions (read: Increase in clean energy stocks and ETFs thanks to climate spending agreement).

Oil prices have fallen sharply from their recent highs. Against this backdrop, we highlight the winning ETFs of the past week below.

Focus on ETFs

Virtus LifeSci Biotech ETFs (BBP Free report) – Up 16.8%

Directionxion mRNA ETF (MSGR Free report) – Up 15.2%

ALPS Medical Breakthroughs ETF (SBIO Free report) – Up 14.4%

SPDR S&P Biotech ETF XBI) – Up 13.8%

The rally in biotech stocks that started in mid-June is still going strong. According to the FT, hedge funds have started buying downed biotech stocks as they believe ultra-low valuations could revive M&A activity in the space. Many big pharma companies are looking to boost their drug pipelines through acquisitions (read: Should you buy beat biotech stocks and ETFs?).

Biotech stocks have been huge beneficiaries of the pandemic as many of these companies were developing new vaccines and treatments for Covid-19, leading to increased IPOs and venture capital investments.

Crypto

First Trust SkyBridge Crypto Industry & Digital Economy ETF (CPRT Free report) – Up to 15%

Fidelity Crypto Industry & Digital Payments ETF (FDIG Free report) – Up 14.2%

ARK Fintech Innovation ETF (ARKF Free report) – Up 13.4%

VanEck Digital Transformation ETF (DAPP Free report) – Up 13.2%

Shares of the largest US cryptocurrency exchange jumped as much as 44% on Thursday, the most intraday since its direct listing in 2021, after announcing a partnership with BlackRock Inc. to help institutional investors manage and trade Bitcoin, according to the commercial standard. The very news bodes well for the entire crypto and fintech space.

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