[05/07/24] Rate Cut Probability Falls, Major ETFs Shrug

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

U.S. central bank Chair Jerome Powell didn’t exactly put the kibosh on interest rate cuts this year in last week’s remarks following the Fed’s decision to keep rates as-is for a fifth straight meeting.

Noticeably, he didn’t specify a timeline, as the central bank had in its March policy meeting. Federal Reserve officials have grown increasingly cautious?as inflation proves a surprisingly stubborn foe and other key economic indicators, most prominently the employment market, have remained unsettling.

“Inflation is still too high, further progress in bringing it down is not assured, and the path forward is uncertain,” Powell said.

Investors who at the start of 2024 were optimistic that the Fed would cut rates have grown resigned to continued monetary hawkishness.

Since the Fed’s recent announcement, ETFs tracking major equity indexes have largely shrugged with the SPDR S&P 500 ETF (SPY) and TrustVanguard S&P 500 ETF (VOO) up 2.8% and 1.7% since the announcement last Wednesday. The iShares 20+ Year Treasury Bond ETF (TLT) , which tracks the bond market, has risen 0.5%.

By James Rubin

Below is a roundup of the key developments in the ETF industry for the seven-day period ending May 3rd, 2024:?

ETF Spotlight: SOXL Seesaws as Nvidia Sags The semiconductor-focused fund has soared over the past year even with recent volatility.

BlackRock's IBIT Has 1st Outflows as Crypto Fervor Dips Risk-aversion moves into markets, and U.S. spot bitcoin ETFs have another day of outflows.

Apple ETFs Jump on Earnings, $110 Bln Buyback The single-stock AAPU, as well as Vanguard's VGT and SPDR's XLK, all moved higher last Friday.

Vanguard Adds Trading Fees to Steer Investors Online Investors with less than $1 million will pay $25 for using a phone rep to buy an ETF.

Bryon Lake Moving to Goldman Sachs after JPMorgan Exit Lake joins Goldman Sachs in a broad role as the firm is in the midst of boosting its ETF business.

Featured Fund

T-Rex 2X Long Apple Daily Target ETF (AAPX)

AAPX aims to provide 2x leveraged exposure to the daily price movement of Apple, Inc. stock, less fees, and expenses. AAPX makes bullish bets on Apple stock through swap agreements. The objective is to obtain daily leveraged exposure equivalent to 200% of the fund's net assets.

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Webinar Alert Industry experts join etf.com on May 21 at 2:00 PM ET to discuss gold ETFs and provide insights into the supply and demand dynamic of precious metal. Attendees will receive 1 CE credit. Register Now

ADVISOR UPSIDE PODCAST

In this episode of Advisor Upside , we examine the potential of fixed income during this unique period of stubbornly high inflation facing off against a Federal Reserve that can’t seem to pull the trigger on interest rate cuts. Where does that leave investors seeking the stability and predictable income of bonds? Allan Roth, veteran financial advisor and founder of Wealth Logic, breaks it all down in a conversation with etf.com Wealth Management Editor Jeff Benjamin.?Listen Now

LISTEN AND SUBSCRIBE ON: Apple Podcast | Spotify | YouTube

TALK ETF’S VIDEO SERIES

The Vanguard Ultra Short Bond ETF (VUSB) is a fund that aims to generate extra yield compared to what investors can attain with government money market funds and other funds that hold Treasury bills. How does this strategy work and what are the risks? In this episode of Talk ETFs, etf.com Senior Analyst Sumit Roy sits down with Arvind Narayanan, the lead portfolio manager for VUSB.?Watch Now | YouTube

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