Barron’s: “The Oil Rally Might Be Over and Other Messages From ETFs”

Excerpt from Barron’s quoting DataTrek’s Nick Colas:

…. “A quick look at the top 20 ETFs of 2019, excluding leveraged investment products, tells a story of strong oil, rallying tech, and a fascination with marijuana and initial public offerings, according Nicholas Colas, co-founder of DataTrek Research in a note published Monday.

Nine energy commodity ETFs including the United States Gasoline Fund(UGA), United States Oil Fund (USO), as well as the Barclays Bank PLC iPath Series B S&P GSCI Crude Oil (OIL), saw an average price gain of nearly 35%. Seven technology-stock heavy ETFs including Invesco Solar (TAN), Global X Fintech (FINX), and the Invesco Nasdaq Momentum ETF (DWAQ) saw an average price gain of 31%. And four special thematic funds such as theETFMG Alternative Harvest ETF (MJ) and the Renaissance IPO ETF (IPO) posted an average gain of 32% over the same period.

The top 20 ETFs for just the first half of the second quarter, however, shows a change in narrative. Only two crude-related ETFs make it into the top 20 US Gas and the United States Brent Oil Fund (BNO), which tracks the international oil benchmark. “The ‘long oil’ trade is getting long in the tooth,” Colas writes”….

Read the full article here in Barron’s!

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