Several ETF areas hit one-year highs as November inflation aligns with forecasts

From Nasdaq: 2024-12-12 08:30:00

The U.S. consumer price index saw an annual inflation rate of 2.7% in November, with a 0.3% increase from the previous month. The core CPI, excluding food and energy costs, was at 3.3% annually and 0.3% monthly. All figures aligned with forecasts, according to CNBC.

The market outlook for a rate cut has strengthened, with traders now giving a 99% chance of a cut. Growth stocks like those in the Russell Top 200 Growth iShares ETF (IWY) tend to perform well in a low-rate environment, reaching a 52-week high. The IWY ETF has gained 16.4% in the last three months.

Consumer Discretionary ETFs, like the Vanguard Consumer Discretionary ETF (VCR), are also expected to benefit from a rate cut. Heavy on Amazon (AMZN) and Tesla (TSLA) stocks, the VCR ETF added 24.4% in the past three months. Low rates are favorable for both consumers and corporations.

The AdvisorShares Restaurant ETF (EATZ) saw a 3.6% increase in the food-away-from-home index in November. The ETF, which returned 17.8% in the last three months, invests in companies deriving at least 50% of their revenue from the restaurant business. It does not track a benchmark.

The Aptus Large Cap Enhanced Yield ETF (DUBS) offers exposure to domestic large-cap companies with a disciplined option overlay strategy to enhance yield. The fund has a 2.37% annual yield and has gained 10.4% in the last three months. The ETF is actively managed and does not track a benchmark.



Read more at Nasdaq: 4 ETF Areas Hit One-Year High Amid In-Line November Inflation