ETFs Last Week: Wall Street Whipsaws, Dollar Under Siege, Yet These 5 Funds Won
President Donald Trump’s rising trade tariffs are rocking financial markets, testing the dollar’s supremacy and shaking Treasury yields. Although Wall Street experienced a midweek rally, investor mood turned sour soon after China hit back with steep counter-tariffs.
In the midst of mayhem, a few niche ETFs stood out as top performers last week:
Direxion Daily AVGO Bull 2X Shares (NASDAQ:AVL), up 33.9%
This ETF provides 2x daily leverage to Broadcom Inc. (NASDAQ:AVGO), which soared on favorable semiconductor tailwinds. The jump was on the heels of Broadcom’s solid AI infrastructure demand and upbeat investor sentiment around its hyperscaler and networking clientele exposure.
Simplify Gold Strategy PLUS Income ETF (NYSE:YGLD), up 20.7%
This fund combines conventional gold exposure with income-generation tactics, utilizing derivatives to generate additional returns. When gold prices soared above $3,200 an ounce during dollar weakness and investor fear, the ETF profited from both the commodity price rise and the options-based premium pick-up. Its two-in-one mandate proved to be a winning asset in a week when both inflation fears and geopolitical concerns reemerged into the spotlight.
Defiance Daily Target 2X Long RGTI ETF (NASDAQ:RGTX), up 15.8%
This ETF provides 2x daily exposure to Rigetti Computing Inc. (NASDAQ:RGTI), a hardware developer of quantum computing. The ETF’s high gain is the result of increasing investor interest in AI-adjacent and quantum tech plays — particularly as defense, cybersecurity and enterprise computer companies with ambitions in quantum start to gain focus in a technology-heavy market.
Simplify Interest Rate Hedge ETF (NYSE:PFIX), up 12.4%
When bond yields skyrocketed and long-term Treasuries fell out of favor, this ETF — a vehicle for hedging against increases in long-term interest rates — performed well. It takes mainly over-the-counter interest rate options and derivatives and makes money off of yield spikes. As the 10-year Treasury yield crossed above 4.5% and the 30-year topped 5%, this fund became a go-to tool for those wanting to cushion portfolios against shocks from interest rates.
Teucrium 2x Daily Corn ETF (NYSE:CXRN), up 10.8%
Chicago corn futures surged last week, perhaps fueled by strong demand on speculation regarding tariff effects on farm trade. This leveraged fund that aims for 2x daily returns on corn prices captured the pop in soft commodities.
Treasuries, Dollar, Inflation And More
Trump’s brash trade tariffs shook not only Wall Street but also the U.S. Treasury market last week. The dollar was also affected, eroding faith in the decades-old story of “American exceptionalism.” The trade-weighted dollar has fallen to a level not seen since April 2022, 10% lower since Trump came to Office.
Even as it cooled inflation, bond markets responded negatively, with long-term Treasury yields rising — the 10-year yield crossed 4.5% and the 30-year touched 5% briefly — indicating a return of bond vigilantes. Gold jumped above $3,200 an ounce as investors turned to safe havens.
Markets experienced a short-lived rally after the White House suspended 90-day tariffs (apart from China), but hopes were dashed as the White House did not waver from its hardline approach and China responded with aggressive counter-tariffs.
Consumer sentiment has been hurt, with the University of Michigan’s sentiment gauge dropping to a new low since 2022. Inflation outlook also spiked, with short-term projections reaching 6.7% — an all-time high since 1981 — to signal heightened unease on Main Street.
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