[08/06/24] Is Consumer Spending Finally Waning?

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

Are consumers finally ratcheting back their spending?

The latest jobs and inflation data suggest that the rocket fuel behind extended U.S. economic growth is finally waning.

On Friday, the U.S. Labor Department reported that nonfarm payrolls added 114,000 jobs in July, far below the 185,000 jobs that job market analysts had forecast.

A torrid jobs market has been among the major factors discouraging the U.S. central bank from dropping interest rates from the 525-550 range where they’ve stood since last July. The Federal Reserve has remained steadfast to its goal of dropping inflation to 2% annually without casting the economy into a steep recession.

But the Fed’s rate inaction, including at last week’s Federal Open Market Committee meeting, has rankled a number of observers of monetary policy, who believe the bank should have acted more boldly months ago.

Leading ETFs focused on retail and consumer goods, including the ProShares On-Demand ETF (OND) and Amplify Online Retail ETF (IBUY) plummeted Monday amid a wider market meltdown.

Separately, last month Nike cut its full-year guidance and sales forecast for 2025, amid slowing online sales and “macroeconomic uncertainties.”

Nike’s summer has hardly been Olympian.

By James Rubin

Below is a roundup of the key developments in the ETF industry for the seven-day period ending August 2:

ETF Debuts in July Hit 2024 High as Assets Climb?ETF openings for the month reached a year-to-date peak, while closures remained low amid record inflows.

Goldman Sachs' ETF Growth in Focus as Lake Arrives Byron Lake, credited with supercharging JPMorgan's ETF business, starts Monday at crosstown rival Goldman.

Monster July Inflows Put ETFs on Track for $1 Trillion Year?Inflows topped $125 billion in July.

TLT, Russell 2000 ETFs Top SPY, Big Tech in July Small cap index ETFs are attracting their biggest flows of the year now.

The Pros and Cons of Political Thematic ETFs Noah Damsky of Marina Wealth Advisors says politics can get investors engaged, but the investments make no sense.

A Guide to the 10-Year Treasury Yield The yield on the highly watched interest rate benchmark is at its lowest in a year.

Featured Fund

iShares Broad USD High Yield Corporate Bond ETF (USHY)

USHY provides exposure to the USD-denominated corporate high yield bond market by including issuers from the FX-G10 countries. The FX-G10 countries that the fund may have exposure to includes the Eurozone Area, the U.K. and the U.S. territories, Norway, Sweden, Switzerland, Australia, Canada, Japan, and New Zealand. The index caps each issuer at 2% but does not limit the number of issues. USHY invests in bonds that have a minimum outstanding face value of USD 250 million, minimum maturity date of 18 months, and at least one year remaining until maturity.

WHAT TO WATCH

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Deadline Extension: Leaders: Top Advisors & Firms?Due to popular demand, the Leaders deadline has been extended to August 15, 2024. The Leaders List will spotlight the Top 100 Financial Advisors and Top 50 RIA Firms across the nation's wealth management industry.?Apply Now For Free

Webinar Alert The experts at MSCI and BlackRock join etf.com on September 10 at 2:00 PM ET to discuss navigating emerging marketing amidst a shifting geological landscape. Attendees will receive 1 CE credit. Register Today

TALK ETF’S VIDEO SERIES

The Fed’s first rate cuts of the year are on the horizon. What does that mean for equities and fixed income? In this episode of Talk ETFs, etf.com Senior Analyst Sumit Roy speaks with Kristy Akullian, head of iShares Investment Strategy, Americas at BlackRock.?Watch Now

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