ETF Wrap: ‘Real big sigh of relief’: Stock, bond ETFs jump on inflation report while investors eye equal-weighted strategies

by | Nov 10, 2022 | Stock Market

Hi! Stock and bond ETFs both got a boost from Thursday’s inflation report. This week’s ETF Wrap also digs into some equal-weighted and actively managed strategies that have seen some increased interest lately. Please send feedback and tips to christine.idzelis@marketwatch.com. You can also follow me on Twitter at @cidzelis and find me on LinkedIn.

Tumultuous markets got some relief Thursday after fresh inflation data pointed to an easing in the surging cost of living in the U.S., sending equity and bond exchange-traded funds higher. “It was a good number,” said Doug Fincher, a portfolio manager at Ionic Capital Management, in a phone interview. “A real big sigh of relief.” The U.S. Bureau of Labor Statistics said Thursday that inflation measured by the consumer-price index rose 0.4% in October for an annual rate of 7.7%. Last month’s rise was softer than expected, with the rate of inflation easing from 9.1% in the 12 months through June. In equities, shares of the SPDR S&P 500 Trust
SPY,
+5.50%
soared 5.5% Thursday, while the Invesco QQQ Trust
QQQ,
+7.38%,
which tracks the tech- and growth-oriented Nasdaq-100 index, surged 7.4%, according to FactSet data. Shares of Treasury and corporate bond ETFs also rose, with the iShares 20+ Year Bond Treasury Bond ETF
TLT,
+3.85%
climbing around 3.9%, iShares IBoxx $ Investment Grade Corporate Bond ETF
LQD,
+3.35%
rising 3.4% and the iShares iBoxx $ High Yield Corporate Bond ETF
HYG,
+3.11%
gaining 3.1%, FactSet data show. Meanwhile, investor demand for actively managed exchange-traded funds has recently picked up while equal-weighted strategies have also been getting attention in this year’s bear market. Nick Kalivas, head of factor and core equity product strategy for Invesco ETFs, said by phone that the Invesco S&P 500 Equal Weight ETF
RSP,
+5.36%
has recently seen an uptick in inflows. …

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