Wall Street witnessed dismal trading on Apr 26 as the major bourses plunged to their lowest levels in six weeks. Doubts that corporate profits can withstand the aggressive Federal Reserve rate hikes to control inflation have led to a sharp sell-off. The S&P 500 and the Dow Jones dropped 2.8% and 2.4%, respectively, while the teach-heavy Nasdaq Composite Index bore the brunt, falling 4% — the worst drop since September 2020 (read: Should You Short Nasdaq ETFs as Index Hits New Low for 2022?).
The terrible trading in the stock world pushed the ETF space into deep red on the day. While most of the ETFs lost, Simplify Volt Pop Culture Disruption ETF (VPOP – Free Report) was the biggest loser, declining 8.2%. Simplify Volt Robocar Disruption and Tech ETF (VCAR – Free Report) , Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ – Free Report) , First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT – Free Report) and Global X Blockchain ETF (BKCH – Free Report) dropped about 7% each.
Growth stocks were hammered by soaring yields. As Fed is planning to raise interest rates faster to control inflation, traders are less willing to pay the lofty prices they had been paying for tech giants. In fact, the Nasdaq Composite Index is down 11% in April and is headed for its worst month since the financial crisis in 2008. The benchmark is down about 21% from its record set in November.
Added to the chaos is the crash in Tesla (TSLA – Free Report) shares, which wiped out about $126 billion of its market capitalization. The stock dropped 12% on investors’ concern that Elon Musk may sell shares to complete his $44 billion takeover of Twitter (TWTR – Free Report) .
Further, the ongoing Russia-Ukraine war and the strict lockdown measures in China to fight COVID-19 have sparked worries over global economic expansion that continued to weigh on investor sentiment (read: What Lies Ahead for Big Tech ETFs in Q1 Earnings?).
Below we profile the above-mentioned ETFs in detail and discuss some of the specifics behind their recent slump:
Simplify Volt Pop Culture Disruption ETF (VPOP – Free Report)
Simplify Volt Pop Culture Disruption ETF is an actively managed fund, providing investors concentrated exposure to media platform leaders across streaming, social and Internet of Things. It invests heavily in the Spotify stock and Spotify call options, and Snap and Snap call options. A modest put option overlay is designed to help mitigate sharp market crashes.
Simplify Volt Pop Culture Disruption ETF has amassed $0.7 million in its asset base and trades in a volume of 1000 shares per day on average. The product has an expense ratio of 0.95%.
Simplify Volt Robocar Disruption and Tech ETF (VCAR – Free Report)
Simplify Volt Robocar Disruption and Tech ETF is an actively managed ETF, seeking concentrated exposure to the leader of autonomous driving technology and then enhancing the concentrated exposure with options (read: Another Banner Quarter for Tesla: ETFs to Buy).
Simplify Volt Robocar Disruption and Tech ETF seeks to boost its performance during extreme moves in Tesla, charging investors 0.95% in annual fees. It has accumulated $7.6 million in its asset base while trading in an average daily volume of 10,000 shares.
Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ – Free Report)
Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF is an actively managed ETF focused on the cryptocurrency mining industry, holding 22 stocks in its basket.
Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF has attracted $12 million in its asset base. It charges 90 bps in annual fees and trades in an average daily volume of 11,000 shares.
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT – Free Report)
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge views as firms driving cryptocurrency, crypto assets and digital economies related innovation. SkyBridge identifies securities for the fund primarily via “bottom up” research focused on finding companies that they believe are leading firms in the crypto industry ecosystem.
First Trust SkyBridge Crypto Industry holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $45.6 million in its asset base and trades in an average daily volume of 54,000 shares.
Global X Blockchain ETF (BKCH – Free Report)
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket with double-digit allocation to the top three firms.
Global X Blockchain ETF has gathered $89.3 million in its asset base and trades in an average daily volume of 134,000 shares. It charges 50 bps in annual fees.
