COMMENTARY:
- The S&P500 index gained back some ground this week up 1.5%. Despite some weaker macroeconomic reports on payroll, manufacturing, and retail sales, the market continues to show some resiliency. Currently, the overall economy and investor confidence are robust.
- Technology took the top spot this week gaining 3.0%. Artificial intelligence-related stocks continued to recoup losses from their January selloff, supporting the overall market performance. Super Micro Computer was up 32.0% followed by Intel Corp. up 23.6%.
- Communication Services rose 2.5% for the period, T-Mobile, the fifth largest constituent was up nearly 10%, following their Starlink-Powered Satellite Service Super Bowl ad.
- Health Care was the stand-out underperformer this week, falling 1.1%. The regulator environment is uncertain with the potential changes in healthcare policies may change with the new administration in Washington. The largest name in the index Eli Lilly fell 3.9% and West Pharmaceutical Services dropped 33.2%, on negative earnings reports on Thursday.
- Five of the 11 sectors outperformed the broader S&P500 index for the week, while six underperformed. Only two sectors were in the red this week. So far, year to date, only two are in negative territory, Energy and Consumer Discretionary.
ETF TIDBITS:
In response to the ongoing turbulence in global trade and rising tensions surrounding tariffs, GMO has unveiled a new ETF listed on the NYSE Arca — the GMO Beyond China ETF (BCHI). The ETF provides investors with an innovative way to navigate the evolving economic landscape, by focusing on regions and sectors benefiting from the strategic move away from China.
Vanguard has listed a new pair of fixed-income index ETFs the Vanguard Ultra-Short Treasury ETF (VGUS) and the Vanguard 0-3 Month Treasury Bill ETF (VBIL). These ETFs provide exposure to the U.S. Treasury securities with short durations and low volatility.
The iShares Bitcoin Trust (IBIT) and SPDR Gold Trust (GLD) are currently competing for the title of top commodity ETF by assets under management (AUM). As of February 15, 2025, GLD maintains its lead with over $81 billion in assets, while IBIT has approximately $57 billion.
