COMMENTARY:
- The S&P500 index extended its winning streak to 5 days on Friday, up 5.3%, tracking optimism about government policy and consumer strength. Next week investors anticipate several Fed speaker updates and economic data releases, along with clarity from weekend talks on tariffs, global conflicts and tax policy. Economic focus shifts to retail earnings and consumer strength. Despite falling sentiment reports, many retailers have earnings announcements next week, which will be a truer gauge future consumer sentiment.
- All eleven S&P Sectors rose this week. It’s the first week in quite some time when every sector in the market was up. Technology led the way gaining almost 8% for the week. A few individual names that were highflyers included Super Micro Computer (+44.3%), First Solar (+27%), and Dell Technologies (+19%).
- Consumer Discretionary was up 7.5%, eating away at its year to day losses, which now stands at -3%. Tesla and Carnival Corp rose 17.3% and 15.9% respectively.
- Healthcare was up 30 basis point for the week and continues to be the worst performer in 2025 falling 3.3% since last year end. A significant contributor to this week underperformance was Unitedhealth Group which fell 23.3% for the period and represents over 5.5% of the sectors exposure, their CEO stepped down and the firm also suspended its full year financial outlook due to higher costs.
- Year to date the S&P500 climbed back into the green and has returned 1.3%. The best performer in ’25 is the Industrial sector, up 9.1%.
ETF Tidbits:
Record Global ETF Inflows Continue
- The global ETF industry attracted a record-breaking $620.54 billion in net inflows during the first four months of 2025, with $157.03 billion in April alone. This marks the 71st consecutive month of net inflows, demonstrating sustained investor appetite for ETFs even amid market volatility.
Investor Trends: Defensive and Volatility-Focused ETFs
- Despite recent market turbulence, investors poured approximately $62 billion into US-listed ETFs in April, gravitating toward ultrashort bond ETFs and defensive sector ETFs, such as utilities. There is a notable increase in demand for minimum volatility and buffered ETFs, as investors seek strategies that balance caution with optimism.
Spot Bitcoin ETF Dynamics Shift
- Several major asset managers reduced their holdings in spot bitcoin ETFs following a 12% decline in bitcoin’s price during Q1 2025. While hedge funds pulled back, some financial advisory and wealth management firms adjusted or increased their positions, reflecting a more nuanced institutional approach to crypto ETFs.
