On the other hand, rising yields have been taken a toll on growth stocks. Additionally, higher yields indicate investors’ optimism in the economy, thereby lifting value stocks. Growth ( QQQ Quick Quote QQQ - Free Report) - Value stocks have been hogging investors’ attention amid market volatility as they are less susceptible to trending markets. DIA with a Zacks ETF Rank #1 (Strong Buy) has an edge over IWM’s Zacks ETF Rank #3 (read: Best ETF Areas YTD Amid Stocks' Fifth-Worst Start in 95 Years). A war in Ukraine coupled with inflationary pressures has led to huge volatility and uncertainty in the stock market. Small Cap ( IWM Quick Quote IWM - Free Report) - Wall Street is seeing tumultuous trading this year, with the major bourses in red so far. Mega Cap ( DIA Quick Quote DIA - Free Report) vs. Emerging Market ( EEM Quick Quote EEM - Free Report) - Here VEA with a Zacks ETF Rank #3 has an edge over EEM’s Zacks ETF Rank #4 (Sell). SPY wins with a Zacks ETF Rank #2 compared with a Zacks ETF Rank #3 for VEU.ĭeveloped Market (VEA) vs. International Market ( VEU Quick Quote VEU - Free Report) - Global market across the globe has been witnessing huge volatility this year triggered by a war in Ukraine, high inflation and rising interest rates. UUP with a Zacks ETF Rank #2 has an edge over GLD’s Zacks ETF Rank #3. While higher rates will pull in more capital into the country, leading to appreciation of the dollar, it diminishes the yellow metal’s attractiveness. Dollar ( UUP Quick Quote UUP - Free Report) - Gold and dollar move in opposite directions and are largely influenced by monetary policies. Gold ( GLD Quick Quote GLD - Free Report) vs. VTI wins with a Zacks ETF Rank #2 (Buy) compared with a Zacks ETF Rank #3 (Hold) for VGK. Meanwhile, the European Central Bank is in no hurry to raise interest rates and will wait through the final quarter of the year for the first-rate hike in over a decade. The Federal Reserve in its latest meeting raised interest rates for the first time since 2018 by 25 bps to 1.25-0.50% and signaled hikes in all the six remaining meetings this year. Europe VGK - Currently, the United States and Europe are following a diverging monetary policy. United States ( VTI Quick Quote VTI - Free Report) vs. In case of a tie between ranks, we have considered the year-to-date performance in selecting the ETF qualifying for the next round. Fortunately, each of these funds has a Zacks ETF Rank making our seeding easier. Then, we have shortlisted 16 ETFs that are popular in the respective segments and fit our criteria. Similar to the four-region criteria of the real championship, we have chosen four factors, namely monetary policies, economy, fundamentals and investment strategies. Since the tournament has reached Sweet Sixteen, let’s start filling the brackets from this level (read: 5 ETFs Set to Gain From March Madness Betting). The excitement surrounding the tournament and its impact on the stock world has led investors to look at ETFs that could act as a proxy for the game. The basketball frenzy spills over to the stock market with various corners of the economy such as media, advertising, restaurants, hotels and airlines turning out to be the biggest beneficiaries. The tournament works its way up from 64 college teams to ‘Sweet Sixteen’ to be played on Mar 24, followed by ‘Elite Eight’, ‘Final Four’ and ultimately the championship. The champion will be crowned on Apr 4 at Caesars Superdome in New Orleans. The National Collegiate Athletic Association (NCAA) Division I Men's Basketball Tournament kicked off last week and is expected to continue for two more weeks.
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