Sector Strategies

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Rare earths - >>> China has a powerful card to play in its fight against Trump’s trade war


CNN

https://www.cnn.com/2025/04/15/business/china-trumps-trade-war-rare-earth-intl-hnk/index.html


Less than a year into Donald Trump’s first trade war with China, Chinese leader Xi Jinping made a high-profile visit to an unassuming factory in Ganzhou, an industrial city nestled among rolling hills in the country’s southeast.

Touring its exhibition hall in 2019, Xi examined row upon row of unremarkable gray metal blocks and declared to his entourage of Communist Party officials: “Rare earths are a vital strategic resource.”

Nearly six years on, China’s dominance of the rare earths supply chain has emerged as among its most potent tools in a renewed trade war with the United States president. The minerals – used to power everything from iPhones to electric vehicles – are vital components for the kinds of advanced technology that will define the future.

And unlike tariffs, it’s a front where Trump has little room to retaliate in kind.

Rare earths are a group of 17 elements that are more abundant than gold and can be found in many countries, including the United States. But they’re difficult, costly and environmentally polluting to extract and process.

For decades, the US and other countries have been dependent on Beijing’s supply of these processed metals. China accounts for 61% of global mined rare earth production, but its control over the processing stage is 92% of the global output, according to the International Energy Agency.

On April 4, after years of veiled warnings, the Chinese government placed export restrictions on seven types of rare earth minerals, as part of its retaliation against Trump’s initial 34% “reciprocal” tariffs on Chinese goods. The new rules require all companies to secure government permission to export the seven minerals as well as associated products, such as magnets.

Magnets made of rare earths enable smaller, more efficient motors and generators used in smartphones, car and jet engines, and MRI machines. They are also essential components in a range of big-ticket weapons, from F-35 stealth fighter jets to nuclear-powered attack submarines.

“It’s China showing that it can exert incredible economic might by being strategic … and surgical and really hitting American industry right where it hurts,” said Justin Wolfers, a professor of economics and public policy at the University of Michigan.

On Tuesday, Trump ordered a probe into potential tariffs on critical minerals, a broader category of resources that include rare earth elements, to evaluate the impact of these imports on America’s security and resilience.

“The dependence of the United States on imports and the vulnerability of our supply chains raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience,” Trump said in an executive order.

Since the first Trump administration, the US has been trying to play catch-up and build up its own domestic rare earths supply chain. Three American rare earth industry companies told CNN that they are in the process of expanding production capacities and sourcing materials from US allies and partners.

But those efforts will take years to meet the enormous demand from key US industries.

Suspended orders

For now, the impact of Beijing’s export controls is being swiftly felt on the ground.

John Ormerod, founder of rare earth magnet consultancy JOC, told CNN that shipments of rare earth magnets belonging to at least five American and European companies have been halted in China since the imposition of the order.

“They were taken by surprise so there’s a lot of confusion on their side and they needed clarification from the authorities of what’s required (to obtain the required export licenses),” he said.

Joshua Ballard, CEO of USA Rare Earth, said the export controls focus on “heavy” rare earths, which are 98% controlled by China. (Heavy rare earths are less common, harder to process and more valuable.) This means that companies must now seek Beijing’s approval to deliver these critical materials to key American industries, he added.

“Right now, literally these exports are being suspended,” Ballard said. “We don’t hold a lot of back stock of this in inventory here in the US … This is China’s best play. They don’t have much leverage when it comes to tariffs on us, but they sure do have leverage here.”

The export controls not only target single materials but also alloys and products where the elements are contained even in minimal quantities, said Thomas Kruemmer, director of the Singapore-based mineral and metal supply chain firm Ginger International Trade and Investment. “A lot of exports now fall under this licensing system,” he added, noting that some delays are expected as exporters navigate the new system.

Decades in the making

China got an early start in rare earth extraction, beginning in the 1950s, according to state media, but the industry only really began to develop in the late 1970s.

During that time, China combined its low labor costs and relatively lax environmental standards with the adoption of foreign technologies, according to Stan Trout, founder of the rare earths and magnetic materials consultancy Spontaneous Materials.

“Much of the technology that they brought in was developed here in the US, or in Japan, or in Europe,” he said. “And over time, I’m sure they’ve made improvements to it.”

As the country’s rare earth production increased, Beijing gradually understood the strategic importance of the minerals. “There was a recognition that this could be a very important technology for them to master,” Trout added.

In 1992, during a visit to one of the country’s main rare earth production hubs in Inner Mongolia, Deng Xiaoping, the former Chinese leader who spearheaded the country’s economic reforms, famously said: “While there is oil in the Middle East, China has rare earths.” Today, China has fulfilled Deng’s vision by dominating the entire supply chain for the materials.

While labor costs are now higher, China’s control of the industry has been cemented because of its “willingness to invest in the technology, the R&D, and automation” in an industry that is highly capital-intensive, said Ormerod.

There were once American companies making these rare earth magnets. But Ormerod noted that they gradually exited the business as lower-cost Chinese alternatives emerged.

“We’ve lost the know-how, we’ve lost the human resource capability and it’s a very capital-intensive operation,” he said.

Now, it is difficult to compete with the “Chinese price,” because of the country’s greater economies of scale, as well as government incentives that gave them an additional edge, Ormerod added.

Between 2020 and 2023, the US relied on China for 70% of its imports of all rare earth compounds and metals, according to a US Geological Survey report this year.

Challenge and opportunity for the US

The latest export controls are not the first time Beijing has leveraged its dominance in the industry. In 2010, China halted shipments of rare earths to Japan for nearly two months over a territorial dispute. In late 2023, Beijing imposed a ban on rare earth extraction and separation technologies.

Beijing has also curbed exports of other critical minerals that are vital to the economy and global supply chains.

Experts and industry insiders said China’s export controls have left the rest of the world with very limited alternatives. But the US is working to fill the gap.

Since 2020, the US Department of Defense has awarded more than $439 million to establish domestic rare earth element supply chains. And it has set a goal to develop a sustainable, mine-to-magnet supply chain capable of supporting all US defense requirements by 2027.

Some American companies see China’s export controls as an opportunity to expedite domestic production and push for a stronger supply chain outside China.

Nicholas Myers, CEO of Phoenix Tailings, a Massachusetts-based rare earth processing start-up, said his company has developed technology to refine rare earth minerals with “zero waste, zero emissions” into metals and metal alloys, sourcing the materials from domestic ores as well as Canada and Australia.

His company currently produces 40 metric tons of rare earth metals and alloys per year and aims to scale up to 400 tons with a new facility in New Hampshire.

“It’s all domestic processing. We don’t rely on anything from China,” he said.

“The United States absolutely has the capabilities to be able to produce the rare earth metals at the timelines that we really need it. We just have to make sure that all the customers, all the policymakers are focused on supporting the industry to really scale up,” Myers added.

American businesses are making inroads in parts of the supply chain too.

USA Rare Earth is building a magnet plant in Texas, aiming to produce 5,000 tons of rare earth magnets annually; it also owns a deposit rich in heavy rare earths in West Texas, including all the minerals on China’s latest export control list, according to its CEO Ballard. (The deposit is also rich in gallium, a critical material banned by China for export to the US in December.)

But the company is still working on the processing technology to extract minerals from the rocks, Ballard said.

“The question is how do we do this faster? How do we unlock these assets that we have in the US, as few as they are? We need to unlock what we have and build as quickly as we can,” he said.

After years of talk, American companies may finally have the impetus they need to do the difficult work of re-establishing the industry for extracting and processing raw materials that is key to winning a tech race with China.

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>>> Steel ETFs' Surge May Not Last After Trump's Tariffs

Steel and metals ETFs rocketed higher Monday, but the action might not last.


ETF.com

by Sumit Roy

Feb 11, 2025


https://www.etf.com/sections/features/steel-etfs-surge-may-not-last-after-trumps-tariffs


Exchange-traded funds that hold shares of steel and aluminum companies surged Monday after President Donald Trump announced that he would impose 25% tariffs on imports of the two metals.

The VanEck Steel ETF (SLX) and the SPDR S&P Metals & Mining ETF (XME) gained 3% and 4%, respectively, on the news.

Big gains in shares of American steel producers, like Nucor Corp. (NUE), Cleveland-Cliffs Inc. (CLF) and U.S. Steel Corp. (X) were the biggest drivers of the $75 million SLX on Monday—but even foreign steel companies, like Ternium Sa (TX) and Posco Holdings Inc. (PKX), contributed to the upside action.

The across-the-board rally in steel stocks is curious. It makes sense that domestic steel companies would rise on news that their foreign competitors would get hit with big new tariffs. But why would stocks of those same foreign rivals increase as well?

A bit of bargain hunting across the industry could be the reason for the jump. Steel stocks in general have been struggling lately; good news for one group of stocks in the industry could have been enough to spark a rally across the industry.

That said, if Trump follows through with his tariffs, investors might become more discerning, which has implications for SLX and other metals-focused exchange-traded funds.

The ETF’s geographical focus is split between the U.S. and the rest of the world. Any upside in shares of US-focused steel companies could be offset by losses in stocks of foreign steel firms.

Case in point: on Monday, as shares of other steel stocks surged, India-based Tata Steel was trading down by 3%.

While I’m a strong advocate for ETFs, this is a situation where investors who want more direct exposure to American steel companies specifically, might be better off buying a basket of individual stocks.

Metals ETFs to Be Buffeted by Competing Forces

As far as I’m aware, there aren’t any ETFs that exclusively hold US steel companies (nor are there any ETFs that focus on aluminum companies, US-based or otherwise).

There are, however, broader US-focused metals ETFs, like the aforementioned XME, which has $1.7 billion in AUM.

XME tracks an equal-weighted basket of US metals and mining companies. But its broader mandate means that it holds stocks of much more than just steel firms, including everything from gold miners to coal producers.

Still, the ETF jumped nearly 4% Monday, underlying the idea that Trump’s tariffs boosted sentiment across the whole metals and mining industry.

Again, don’t count on the across-the-board rally continuing (at least based on the Trump tariff news). As investors start separating the winners from the losers, metals ETFs will start to feel the push and pull of competing forces.

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>>> Crypto-Focused ETF Applications Surge as SEC Lightens Up


The SEC acknowledged applications for Solana and Litecoin ETFs while the Cboe pushed for XRP products, marking a shift in crypto fund oversight.


ETF.com

by DJ Shaw

Feb 07, 2025


https://www.etf.com/sections/etf-watch/crypto-focused-etf-applications-surge-sec-lightens


Investors may soon have a wider array of crypto-focused investment products from which to choose after the Securities and Exchange Commission acknowledged Grayscale applications for funds based on the spot price of Solana and Litecoin and the Cboe submitted filings for funds based on XRP.

The separate events on Thursday, and a filing by BlackRock to amend its iShares Bitcoin Trust (IBIT) fund, underscore issuers' growing confidence in the more favorable crypto regulatory environment under the new Trump administration, and their efforts to meet skyrocketing demand for crypto products.

The SEC must still approve the applications. Last year, the regulator approved applications for funds based on the performance of bitcoin and Ethereum, the two largest cryptocurrencies. Solana, Litecoin and XRP have smaller market capitalizations and are lesser known.

Under acting Chair Mark Uyeda, the agency appears more receptive to crypto products than it was under former Chair Gary Gensler, who was considered more hostile toward the industry. Gensler's SEC frequently raised concerns over market manipulation, investor protections, and regulatory clarity.

This leadership change comes as issuers widen their crypto investment offerings to meet soaring demand for these products by consumers and institutional investors.

Evolving Crypto ETF Landscape

According to the filings, the SEC acknowledged Grayscale's applications for both Solana and Litecoin ETFs on Thursday, expanding on its recent review of Canary Capital's Litecoin ETF filing and signaling a broader openness to crypto investment products.

"This is actually newsworthy because the SEC had refused to do this in recent filing attempts for SOL," Bloomberg ETF analyst James Seyffart wrote on X.

The change follows a slew of separate filings Thursday by the Cboe BZX Exchange to list and trade XRP ETFs from four issuers: Bitwise, WisdomTree, Canary Capital, and 21Shares.

Separately, BlackRock Inc. (BLK), the world's largest asset manager, is seeking to modify its existing bitcoin ETF structure. According to an SEC filing, the firm requested permission to allow in-kind redemptions for its IBIT, potentially streamlining the funds operations.

The flurry of activity comes as the industry tests the boundaries under new SEC leadership. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, wrote in an X post called the developments "notable," suggesting they were "seemingly the direct result of leadership change" at the SEC.

These developments follow Trump Media & Technology Group's (DJT) announcement of plans to launch its own crypto-focused ETF, the TruthFi Bitcoin Plus ETF, further expanding the growing field of digital asset investment products.

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>>> 13 Best Farmland and Agriculture Stocks To Invest In According to Hedge Funds


Insider Monkey

December 3, 2024


https://www.insidermonkey.com/blog/13-best-farmland-and-agriculture-stocks-to-invest-in-according-to-hedge-funds-1401620/


In this article, we will look at the 13 best farmland and agriculture stocks to invest in according to hedge funds.

Revolutionizing Agriculture: Technology in Modern Farming

The farmland and agriculture sector is crucial for global food security and economic stability. As the world population continues to grow, the demand for food increases, necessitating innovative practices in agriculture and farming. Recent trends indicate a significant shift towards technology-driven agriculture, which aims to enhance productivity while promoting sustainability.

In the first quarter of 2024, McKinsey surveyed around 4,400 farmers across Europe, India, Latin America, and North America to understand the factors influencing their profitability and technology adoption. The firm conducted a similar survey in 2022. The findings indicate that while farmers are increasingly adopting technology, the pace remains slow, with a three-percentage-point rise since 2022 in those using or willing to use at least one new digital tool to improve operations.

North American farmers lead in technology adoption. In the US, 61% of farmers are using or willing to adopt digital agronomy. Additionally, 51% are using or willing to adopt precision agriculture hardware, and 38% are adopting remote-sensing technologies. Latin America showed the most significant growth in technology adoption, with a remarkable ten-percentage-point increase from 2022 to 2024. Farmers around the world are more inclined to adopt new technologies that directly improve operations. According to the data, digital agronomy and precision agriculture hardware are the most popular technologies around the world.

The survey highlights that in the US, larger farms are 45% more likely to adopt agricultural technology compared to smaller farms. This trend can be attributed to the greater scale needed for a favorable return on investment (ROI) in agtech. Despite the challenges posed by rising input costs and extreme weather conditions, farmers are looking towards sustainable practices and innovative technologies to enhance their productivity and profitability. Organizations that provide technology and services have a unique opportunity to cater to farmers’ diverse needs across different regions.

With this background in mind, let’s take a look at the 13 best farmland and agriculture stocks to invest in according to hedge funds.

Methodology

To compile our list of the 13 best farmland and agriculture stocks to invest in according to hedge funds, we used the Finviz and Yahoo stock screeners to find the largest farmland and agriculture companies. We also reviewed our own rankings and consulted various online resources.

From an initial pool of more than 30 farmland and agriculture stocks, we focused on the top 13 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 13 best farmland and agriculture stocks to invest in are ranked in ascending order based on the number of hedge funds holding stakes in them, as of Q3 2024.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

13. Ingredion Incorporated (NYSE:INGR)

Number of Hedge Fund Holders: 26

Ingredion Incorporated (NYSE:INGR) is a leading global ingredient solutions provider and a major player in the farmland and agriculture sector. The company turns grains, fruits, vegetables, and other plant-based materials into valuable products and solutions for the food, beverage, animal nutrition, brewing, and industrial markets. Ingredion Incorporated (NYSE:INGR) has shown strong financial performance and strategic growth initiatives, making it an attractive option for investors.

In the third quarter of 2024, the company reported impressive results with a 26% increase in reported operating income and a 29% increase in adjusted operating income. The adjusted earnings per share (EPS) rose to $3.05, marking a 31% increase from the previous year. This growth was driven by effective contract management and operational excellence across all segments, which experienced double-digit operating income growth.

Despite facing challenges such as input and wage cost inflation, Ingredion Incorporated (NYSE:INGR) successfully adjusted pricing through multiyear contracts with customers, which helped recover margins. The company also achieved structural savings through its cost-to-compete program, which aims to deliver $50 million of run-rate savings by the end of 2025.

Additionally, Ingredion Incorporated (NYSE:INGR) ramped up production at its facilities in Cali, Colombia, and Mexico City after optimizing operations with minimal capital expenditures. Looking ahead, the company is committed to investing in capacity expansion and network optimization projects. These initiatives are designed to support the company’s long-term growth strategy while maintaining a strong focus on cost management. This focus on enhancing production efficiency positions Ingredion Incorporated (NYSE:INGR) well for future growth.

12. The Scotts Miracle-Gro Company (NYSE:SMG)

Number of Hedge Fund Holders: 28

The Scotts Miracle-Gro Company (NYSE:SMG) is a multinational manufacturer of branded consumer lawn and garden products, including fertilizers, plant foods, and pest control solutions. The Scotts Miracle-Gro Company (NYSE:SMG) ranks among the best agriculture stocks to invest in according to hedge funds.

The Scotts Miracle-Gro Company (NYSE:SMG) has faced challenges in recent years, including high debt and an unsustainable cost structure due to fluctuating demand post-pandemic. However, the company took significant steps to mitigate these issues by cutting over $400 million in operating expenses. The company also restructured its Hawthorne Gardening Company to make it smaller and more profitable. These measures helped The Scotts Miracle-Gro Company (NYSE:SMG) maintain its dividend and avoid issuing new shares.

Fiscal 2024 marked a significant recovery for the company as it shifted its focus to future growth. In its fiscal fourth quarter of 2024, The Scotts Miracle-Gro Company (NYSE:SMG) reported total net sales of $414.7 million, an 11% increase compared to the previous year. The US Consumer segment saw remarkable growth, with sales rising by 54% to $309.7 million, primarily due to improved shipment timing.

The Scotts Miracle-Gro Company (NYSE:SMG) plans to invest at least $200 million annually in advertising and marketing to achieve consistent growth of around 3% each year. The company aims to improve gross margins into the mid-30% range and reduce its debt leverage to approximately 3x by the end of fiscal 2027.

In fiscal year 2025, The Scotts Miracle-Gro Company (NYSE:SMG) intends to expand its Miracle-Gro Organic line and introduce new products, reinforcing its commitment to sustainability. The company also aims to introduce a new O.M. Scotts & Son natural lawn fertilizer and grass seed, featuring eco-friendly packaging. With a clear strategy focused on innovation and efficiency, The Scotts Miracle-Gro Company (NYSE:SMG) is well-positioned for future growth.

11. Vital Farms Inc. (NASDAQ:VITL)

Number of Hedge Fund Holders: 28

Vital Farms Inc. (NASDAQ:VITL) is a food and agriculture company that specializes in producing ethically sourced eggs and dairy products. The company partners with family farms to offer a variety of products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, which are available in over 24,000 stores across the United States.

In its third-quarter financial results for 2024, Vital Farms Inc. (NASDAQ:VITL) reported a remarkable 31.3% increase in net revenue, reaching $145 million compared to $110.4 million in the same quarter last year. This growth was primarily driven by higher sales volumes, reflecting strong consumer demand for its products. Vital Farms Inc. (NASDAQ:VITL) has managed to achieve a 31% increase in sales over the first nine months of 2024, showcasing its robust performance.

Looking forward, Vital Farms Inc. (NASDAQ:VITL) is focused on expanding its operations to support its ambitious goal of reaching $1 billion in net revenue by 2027. In June 2024, the company announced plans to open a new Egg Central Station (ECS) facility in Seymour, Indiana. This facility will enhance their egg washing and packing capabilities and build on the success of their existing operations.

Over the past three years, Vital Farms Inc. (NASDAQ:VITL) has demonstrated impressive growth, with a compound annual growth rate (CAGR) of 34% for revenue and an astonishing 111% CAGR for net income. Additionally, analysts are optimistic about the company’s future, holding a consensus buy rating on the stock and setting a one-year price target of $41.00, indicating a potential upside of 21% from current levels. With strong financial results and ongoing investments in capacity expansion, Vital Farms Inc. (NASDAQ:VITL) is well-positioned for future success, making it an attractive option for investors seeking opportunities in the farmland and agriculture sector.

10. Tractor Supply Company (NASDAQ:TSCO)

Number of Hedge Fund Holders: 29

Tractor Supply Company (NASDAQ:TSCO) is an American farm supplies company and the largest rural lifestyle retailer in the US. The company offers agriculture, lawn and garden maintenance, home improvement, livestock, equine, and pet care equipment and supplies. Tractor Supply Company (NASDAQ:TSCO) ranks among the best farmland and agriculture stocks to invest in according to hedge funds.

In the third-quarter financial results for 2024, which ended on September 28, Tractor Supply Company (NASDAQ:TSCO) reported net sales of $3.47 billion, reflecting a modest increase of 1.6%. This growth was primarily driven by the opening of 16 new stores during the quarter. Additionally, gross profit rose by 3.2% to $1.29 billion, with gross margins improving to 37.2% due to lower transportation costs and effective product cost management.

Despite a challenging retail environment, Tractor Supply Company (NASDAQ:TSCO) is advancing its Life Out Here strategy and focusing on enhancing customer loyalty and expanding market share. The company has invested significantly in its store layouts, with nearly 50% of its locations now featuring the Project Fusion design and over 550 garden centers. These investments are expected to yield long-term growth and improve customer engagement.

9. Corteva Inc. (NYSE:CTVA)

Number of Hedge Fund Holders: 33

Corteva Inc. (NYSE:CTVA) is a pure-play agriculture company that provides farmers around the world with a comprehensive range of seed and crop protection products and services. The company is focused on helping farmers maximize productivity to enhance yield and profitability. With a strong portfolio of well-known brands and an innovative product pipeline, Corteva Inc. (NYSE:CTVA) is well-positioned for growth in the agriculture sector.

In its third-quarter results for 2024, the company reported a 10% decrease in net sales compared to the previous year. However, Corteva Inc. (NYSE:CTVA) saw a 3% increase in volume, driven by an 11% rise in Crop Protection volume, particularly in Latin America and North America on demand for new products and spinosyns. This growth was partly offset by lower seed volumes due to reduced corn planting in Argentina. Despite facing an operating loss in Q3, management remains optimistic, expecting to achieve over $400 million in savings from its controllables this year.

Corteva Inc. (NYSE:CTVA) is focusing on differentiated and new technologies that warrant premium pricing. In 2025, the company plans to introduce several hundred new hybrids and varieties globally, which will help farmers improve yields and productivity. Additionally, on a year-to-date basis, Corteva Inc. (NYSE:CTVA) has received over 150 crop protection registration approvals across nearly 50 countries, indicating robust demand for its innovative solutions.

Corteva Inc. (NYSE:CTVA) announced a significant breakthrough on November 18, 2024, with the introduction of a proprietary non-GMO hybrid wheat technology. This innovation could increase yield potential by 10% while using the same amount of land resources and offers improved drought resistance, yielding up to 20% more in water-stressed conditions. Such advancements are crucial for global food security and position Corteva Inc. (NYSE:CTVA) as a leader in addressing agricultural challenges. These strategic initiatives and advancements make CTVA a compelling investment opportunity in the agriculture sector, as it continues to drive innovation and support farmers’ needs effectively. Corteva Inc. (NYSE:CTVA) ranks among the best agriculture stocks to buy.

8. Bunge Global SA (NYSE:BG)

Number of Hedge Fund Holders: 33

Bunge Global SA (NYSE:BG) is a prominent player in the agribusiness sector, connecting farmers with consumers by providing essential food, feed, and fuel. The company specializes in oilseed processing and supplies specialty plant-based oils and fats used in various products, from animal feed to cooking oils.

On October 5, 2023, Bunge Global SA (NYSE:BG) announced that the company’s shareholders approved its merger with Viterra. This acquisition will create a more robust global agribusiness entity, enhancing Bunge’s (NYSE:BG) operational capabilities and expanding its market reach. The integration process is progressing well, with expectations to finalize the merger by late 2024 or early 2025. Viterra Limited is a major marketer and handler of grains and oilseeds with a strategic network of agricultural storage, processing and transport assets. This combination will diversify Bunge’s (NYSE:BG) operations across different geographies and crops.

Financially, Bunge Global SA (NYSE:BG) reported a diluted earnings per share (EPS) of $1.56 for Q3 2024, down from $2.47 the previous year. While Agribusiness and Refined and Specialty Oils showed strong performance, the overall results were impacted by a difficult global margin situation. The company remains focused on its core operations, as evidenced by its recent sale of a 50% stake in BP Bunge Bioenergia on October 1, 2024. This decision allows Bunge Global SA (NYSE:BG) to concentrate on its primary business areas while offloading non-core ventures.

Bunge Global SA (NYSE:BG) is also investing in new facilities, such as a palm and specialty oils facility in Avondale, Louisiana, which will enhance its service capabilities in North America. These strategic initiatives position Bunge as a compelling investment opportunity in the farmland and agriculture sector, particularly as it navigates current market challenges and prepares for future growth.

7. Nutrien Ltd. (NYSE:NTR)

Number of Hedge Fund Holders: 33

Nutrien Ltd. (NYSE:NTR) is a prominent Canadian agriculture and fertilizer company, recognized as one of the world’s largest producers of potash and nitrogen fertilizers. The company plays a critical role in the agricultural sector by providing essential crop inputs and services to farmers globally.

In June 2024, during its Investor Day, Nutrien Ltd. (NYSE:NTR) set ambitious performance targets for 2026, focusing on improving earnings and cash flow. The company has made good progress and now aims to achieve $200 million in operational efficiencies by 2025, one year ahead of schedule. These efficiencies will be realized through cost reductions across both retail and corporate operations.

In the first nine months of 2024, Nutrien Ltd. (NYSE:NTR) reported an adjusted EBITDA of $4.3 billion, driven by higher retail earnings, increased fertilizer volumes, and lower operating costs. The company has already boosted sales volumes by 1.3 million tons this year through the first 3 quarters of 2024, with plans to increase potash and nitrogen production by an additional 2 to 3 million tons compared to 2023 levels.

Nutrien Ltd.’s (NYSE:NTR) strong health is further demonstrated by its commitment to returning value to shareholders. As of November 5, 2024, the company repurchased 1.5 million shares for approximately $75 million in the latter half of the year. This move reflects Nutrien’s dedication to enhancing shareholder value. The company’s strategic focus on operational efficiency and growth positions it well for future success.

6. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 34

The Mosaic Company (NYSE:MOS) is a leading global producer of concentrated phosphate and potash fertilizers, playing a vital role in the agriculture industry. The company extracts, produces, and supplies millions of tonnes of high-quality fertilizers each year, significantly supporting farmland and agricultural productivity.

In the third quarter of 2024, The Mosaic Company (NYSE:MOS) reported revenues of $2.8 billion, a 21% decrease from the same quarter last year, primarily due to lower selling prices. However, the company achieved a net income of $122 million, a significant recovery from a net loss of $4 million in Q3 2023. This turnaround demonstrates The Mosaic Company’s (NYSE:MOS) resilience and ability to address challenges such as weather-related disruptions.

The company is strategically focusing on capital allocation to enhance its growth potential. The company has completed several projects that require minimal capital investment but promise high returns. Notable achievements include the completion of an 800,000-tonne Riverview MicroEssentials capacity conversion and the 500,000-tonne Esterhazy potash compaction project in Q2 2024.

Looking ahead, The Mosaic Company (NYSE:MOS) plans to enhance its milling capacity by 400,000 tonnes with the Esterhazy Hydrofloat project, expected to be completed by mid-2025. Additionally, a new 1 million-tonne blending facility in Palmeirante, Brazil is expected to be finished by the third quarter of 2025.

To improve efficiency, The Mosaic Company (NYSE:MOS) is working on cost reduction initiatives aimed at achieving a $150 million run rate by the end of 2025. The company also expects to lower its 2024 capital expenditures by $200 million compared to 2023 levels. Additionally, in the first nine months of 2024, The Mosaic Company (NYSE:MOS) returned $415 million to shareholders.

With its strong market position, commitment to operational improvements, and focus on shareholder returns, The Mosaic Company (NYSE:MOS) represents an attractive investment opportunity.

5. Archer-Daniels-Midland Company (NYSE:ADM)

Number of Hedge Fund Holders: 34

Archer-Daniels-Midland Company (NYSE:ADM) is an American multinational corporation specializing in food processing and the trading of agricultural commodities. As one of the largest agricultural processing companies globally, the company plays a vital role in connecting farmers with markets, producing ingredients for food, beverages, supplements, and animal feed.

In the third quarter of 2024, which ended on September 30, the company reported earnings before income taxes of $108 million, a decline of 90% compared to the same quarter last year. This drop was primarily due to falling prices for key crops like corn and soybeans, which have hit near four-year lows. Additionally, Archer-Daniels-Midland Company (NYSE:ADM) faced a non-cash impairment charge of $461 million related to its investment in Wilmar.

Despite these challenges, Archer-Daniels-Midland Company (NYSE:ADM) remains a strong player in the market. The company declared a cash dividend of 50 cents per share on November 8, 2024, marking its 372nd consecutive quarterly payment. This long-standing commitment to returning value to shareholders highlights Archer-Daniels-Midland Company’s (NYSE:ADM) stability and reliability.

To address current market conditions, the company is focusing on improving productivity and operational efficiency. In the second quarter of 2024, Archer-Daniels-Midland Company (NYSE:ADM) initiated projects aimed at achieving $500 million in cost reductions over the next two years. These efforts are expected to significantly improve savings by the end of 2024.

The combination of a strong dividend history, ongoing cost-saving initiatives, and a solid market position makes Archer-Daniels-Midland Company (NYSE:ADM) an attractive investment opportunity in the farmland and agriculture sector.

4. Tyson Foods Inc. (NYSE:TSN)

Number of Hedge Fund Holders: 37

Tyson Foods Inc. (NYSE:TSN) is an American multinational food corporation that ranks among the best farmland and agriculture stocks to invest in. The company works closely with independent livestock and poultry farmers and owns well-known brands such as Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, and State Fair.

In the fourth quarter of 2024, Tyson Foods Inc. (NYSE:TSN) reported sales of $13.56 billion, marking a 1.6% increase from the previous year. The company’s GAAP operating income surged to $525 million, a remarkable turnaround from a loss of $463 million in the same quarter last year. Adjusted operating income also rose significantly to $512 million, reflecting a 117% increase compared to the prior year.

Tyson Foods Inc. (NYSE:TSN) is focused on enhancing its operational excellence by modernizing its processes and leveraging technology. The company plans to invest in digital capabilities, using big data and artificial intelligence (AI) to improve decision-making and customer engagement. This strategic focus on innovation helps Tyson Foods Inc. (NYSE:TSN) expand its market reach and better serve consumers.

Furthermore, Tyson Foods Inc. (NYSE:TSN) has maintained strong liquidity, with approximately $4 billion available as of September 28, 2024. This financial strength allows the company to invest in growth opportunities.

With its robust financial performance, commitment to innovation, and strong market position, Tyson Foods Inc. (NYSE:TSN) stands out as an attractive investment opportunity. According to Insider Monkey’s database, TSN has gained significant interest from institutional investors, with the number of hedge fund holders increasing to 37 in Q3 2024, up from 27 in the previous quarter.

3. CF Industries Holdings Inc. (NYSE:CF)

Number of Hedge Fund Holders: 39

CF Industries Holdings Inc. (NYSE:CF) is an American producer of hydrogen and nitrogen products, primarily used in clean energy, emissions abatement, and agricultural fertilizers. The company manufactures and distributes essential fertilizers like ammonia, urea, and ammonium nitrate, which are crucial for enhancing crop yields.

For the first nine months of 2024, CF Industries Holdings Inc. (NYSE:CF) reported net earnings of $890 million or $4.86 per diluted share, down from $1.25 billion or $6.42 per diluted share in the same period of 2023. Despite this decline, the company produced approximately 7.2 million tons of gross ammonia, slightly up from 7.0 million tons in the previous year. This production increase reflects CF Industries Holdings Inc.’s (NYSE:CF) ability to maintain strong operational performance amid fluctuating market conditions.

Net sales for the first nine months of 2024 were $4.41 billion, a decrease from $5.06 billion in the same period of 2023. This drop was mainly due to lower average selling prices. However, sales volumes remained stable due to higher ammonia sales from a recently acquired Waggaman ammonia production facility.

The company is also investing in strategic initiatives aimed at sustainability and growth. Notably, CF Industries Holdings Inc. (NYSE:CF) is advancing projects related to low-carbon ammonia technologies and carbon capture at its facilities in Donaldsonville and Yazoo City. These initiatives not only align with global sustainability goals but also position CF Industries Holdings Inc. (NYSE:CF) as a leader in environmentally friendly solutions. Additionally, CF Industries Holdings Inc. (NYSE:CF) has been proactive in returning value to shareholders, repurchasing 14.4 million shares for $1.13 billion during the first nine months of 2024.

With its robust production capabilities, commitment to innovation, and focus on sustainability, CF Industries Holdings Inc. (NYSE:CF) presents a solid investment opportunity for those looking to invest in farmland and agriculture stocks.

2. Deere & Company (NYSE:DE)

Number of Hedge Fund Holders: 41

Deere & Company (NYSE:DE), also known as John Deere, is a prominent American manufacturer specializing in agricultural, turf, construction, and forestry equipment. The company is well-known for its innovative technology-driven products, such as the Autonomous 8R Tractor, See & Spray systems, and E-Power Backhoe. Deere & Company (NYSE:DE) ranks among the best agriculture stocks to buy.

In the fourth quarter of fiscal 2024, which ended on October 27, 2024, Deere & Company (NYSE:DE) reported a net income of $1.24 billion, or $4.55 per share. This represents a significant decline from the $2.36 billion earned in Q4 2023. For the full fiscal year, net income dropped to $7.1 billion, down from $10.16 billion in fiscal 2023. Despite these declines, Deere & Company’s (NYSE:DE) margins in 2024 remained strong, exceeding 18%, reflecting improvements made since adopting its smart industrial operating model in 2020.

Deere & Company (NYSE:DE) faced challenges this year, with worldwide net sales and revenues falling by 28% in Q4 to $11.14 billion, and a 16% decrease for the full year at $51.71 billion. These declines were primarily due to reduced shipment volumes across various segments, including a 38% drop in Production & Precision Agriculture sales. However, Deere & Company (NYSE:DE) has proactively adjusted its operations to better align with current market conditions.

Despite these setbacks, the company continues to invest heavily in research and development, maintaining record levels of spending to drive innovation and product development. In 2024, Deere & Company (NYSE:DE) introduced a variety of new and exciting solutions, including connected machines, engaged acres, and Autonomous Acres. The company’s See & Spray technology has successfully covered over one million acres this year, significantly reducing herbicide use by an average of nearly 60%.

1. FMC Corporation (NYSE:FMC)

Number of Hedge Fund Holders: 41

FMC Corporation (NYSE:FMC) is a leading American agricultural sciences company that focuses on developing and marketing essential products like herbicides, insecticides, and fungicides. FMC ranks among the best agriculture stocks to buy according to hedge funds.

In Q3 2024, FMC Corporation (NYSE:FMC) reported revenues of $1.07 billion, marking a 9% increase compared to Q3 2024. This growth was driven by higher sales volumes and effective cost management strategies, which helped the company turn around from a net loss of $4 million in Q3 2023 to a net income of $66 million in Q3 2024. The introduction of innovative products, such as a new fluindapyr-based fungicide in Brazil, Argentina, and Paraguay, has significantly contributed to this revenue boost.

The company’s commitment to improving its financial health is evident in its aggressive cost-saving measures. FMC Corporation (NYSE:FMC) has raised its restructuring savings target for 2024 to between $125 million and $150 million, with an aim to achieve over $225 million in gross savings by 2025. This includes realigning manufacturing operations and reducing costs through attrition.

Additionally, FMC Corporation (NYSE:FMC) announced that it had completed the sale of its Global Specialty Solutions business on November 1, 2024, allowing it to concentrate more on its core crop protection business. This strategic move is expected to enhance operational efficiency and focus resources on high-potential areas. With robust revenue growth, improved profitability, and a clear focus on core agricultural products, FMC Corporation (NYSE:FMC) presents an attractive investment opportunity in the farmland and agriculture sector.

Overall, FMC ranks first among the 13 best farmland and agriculture stocks to invest in according to hedge funds. While we acknowledge the potential of farmland and agriculture companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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>>> Little-Known Quantum ETF Rakes In Cash After Computing Breakthrough


Bloomberg

by Vildana Hajric

December 24, 2024


https://finance.yahoo.com/news/little-known-quantum-etf-rakes-175431299.html


(Bloomberg) — For most of its six-year life, the Defiance Quantum ETF behaved just like any other high-tech long shot: Unexceptional returns and meager investor interest kept it stuck among the investing also-rans that dot the exchange-traded fund landscape.

All that changed in the span of a nanosecond after Google-parent Alphabet Inc. announced a big breakthrough in quantum computing earlier this month. Now, flows for the fund, which trades under the ticker QTUM, are surging like never before.

QTUM, which was designed to track stocks of companies tied to quantum computing, has seen roughly $250 million of inflows so far in December, an amount that puts it on track for its largest monthly cash haul since launching in 2018, data compiled by Bloomberg show. It has gained 17% in the period. Prior to this year, QTUM had taken in a net $164 million since inception.

The inflows started to pick up earlier this month following news that Alphabet had achieved a major accomplishment in quantum computing through the use of its Willow quantum chip. The company said that its quantum computer needs only five minutes to solve a problem that would take a supercomputer around 10 septillion years to do. Shares of Alphabet rose in the wake of the announcement, and other stocks linked to quantum computing have also extended advances in recent days.

“Quantum is having the same moment as AI did last year. Many of the quantum stocks aren’t held by ETFs broadly so QTUM is really the only pure play out there,” Bloomberg Intelligence’s Athanasios Psarofagis said. “I wouldn’t be surprised to see more quantum-related filings soon.”

Quantum computing involves using the mechanics of quantum physics to make more powerful computers. Such computers can do things that standard ones can’t, including modeling out complex webs of items that involve many inputs and moving parts. Specialists in the field are hoping that these computers will produce leaps and breakthroughs in fields from drug development to financial modeling.

QTUM tracks an index that’s made up of companies including D-Wave Quantum Inc., Rigetti Computing Inc. and IonQ Inc., among others, as well as Alphabet and Nvidia Corp. D-Wave — a Canadian firm that became the first to sell quantum computers in 2011 — is up more than 800% this year, while Rigetti has added more than 1,000%.

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>>> Quantum-computing stocks are soaring as investors place bets on ‘the next big thing’ in tech


MarketWatch

by Joseph Adinolfi

December 11, 2024


https://finance.yahoo.com/news/quantum-computing-stocks-soaring-investors-200100154.html


A trio of quantum-computing stocks has seen huge gains over the past few months, bolstered by a wave of hype from retail investors looking to cash in on what could be the “next big thing” in tech.

Shares of Rigetti Computing Inc. RGTI, D-Wave Quantum Inc. QBTS and IonQ Inc. IONQ — all small-capitalization stocks closely associated with quantum computing — have gained 843%, 455% and 398% in the three months through Tuesday’s close, FactSet data showed.

Quantum-computing stocks are soaring as investors place bets on ‘the next big thing’ in tech

The Defiance Quantum ETF QTUM — which invests in a number of mature and developing companies involved in quantum computing and machine learning — has gained more than 30% over the same period.

For shareholders of these companies, the gains amount to only a few billion dollars’ worth of value creation. Still, a steady drumbeat of new developments, coupled with their strong performance in the market, appears to have piqued investors’ interest.

The latest market-moving announcement landed shortly before the closing bell on Monday, when Alphabet Inc.’s Google Quantum AI unit published what some experts characterized as a potential breakthrough in the field that could accelerate the development of a commercially viable product.

Shares of all three of the small-cap companies named above briefly rallied on the news on Tuesday, although only one — Rigetti — managed to hang on to its gains by the time the closing bell rang. Shares of both IonQ and D-Wave Quantum continued to slide on Wednesday.

But setting these latest moves aside, their recent spurt of gains still represents a notable turnaround since the bursting of the SPAC bubble had saddled their shareholders with major losses. All three companies were taken public via mergers with shell companies during the so-called SPAC boom, and D-Wave Quantum and Rigetti have continued to trade well below their peaks from 2020 and 2021.

Over the past two weeks, users have flocked to posts on Reddit and other social-media platforms to share their hopes, questions and concerns about a technology that some feel could be the next big development in tech.

To longtime market watchers, it is just the latest example of retail investors’ affinity for speculative technology bets.

“This market loves a sexy technology theme; we certainly know that’s the case with AI,” said Steve Sosnick, chief strategist at Interactive Brokers. “It wouldn’t surprise me in the least if people move on to quantum computing.”

But there is one important distinction between quantum computing and AI that investors should keep in mind. Although there is hope that there could be synergies between the two technologies, quantum computing is still years away from producing a commercially viable product.

For now, investors seem to be brushing off these concerns, as these stocks have been swept up in the frenzied trading activity that has increasingly dominated the U.S. market — a dynamic that appears to have shifted into overdrive following President-elect Donald Trump’s victory in the Nov. 5 U.S. election.

Given their focus on a still-unproven technology, these companies remain extremely speculative investments.

“It’s hype on hype,” said Daniel O’Regan, a managing director at Mizuho Securities USA, in response to a question about what’s driving these companies higher. “They don’t really have any revenue. People who are gravitating toward some of the [quantum-computing] pure plays are trying to dream the dream. They’re betting that this could be the next, next big thing.”

A few other factors have contributed to their meteoric rise, according to O’Regan, including the fact that shares of all three had been heavily shorted, leaving them vulnerable to a short squeeze.

IonQ, the most mature company in the group, is expected to report sales of just $41.4 million during the 2024 calendar year. During the brief period that these companies have been publicly traded, none has produced a quarterly profit, according to FactSet data.

Name

Market Cap

Projected 2024 sales

Rigetti Computing

$1.6 billion

$16.2 million

D-Wave Quantum

$1.4 billion

$9.1 million

IonQ

$7.1 billion

$41.4 million

Furthermore, their quest for commercial viability faces another potentially enormous obstacle: entrenched competition from companies with far more resources. Alphabet and IBM Corp. IBM have already invested heavily in their own quantum-computing technology, O’Regan noted.

But as more Big Tech names scramble to gain a foothold, one or more of these three small-cap companies could potentially find itself the target of a takeover bid.

To some, that could be reason enough to keep plowing capital into their shares.

A breakthrough

In November, Amazon.com Inc.’s AMZN Amazon Web Services segment unveiled a new advisory service focused on quantum computing.

Then on Monday, Google published the results of a breakthrough involving its quantum-computing chip, Willow, in the scientific journal Nature. The paper confirmed that Willow had performed a computation that would have taken a classical supercomputer 10 septillion — that is, 10 to the 25th power — years to complete. It also demonstrated a level of error control that Google said represented a breakthrough that the field has been working toward for decades.

By the time the closing bell rang on Tuesday, Alphabet was sitting on a 5.6% gain, boosting its market capitalization by nearly $120 billion. Shares were up another 4% in recent trading on Wednesday.

Rigetti also managed to hang on to a sizable double-digit advance after announcing a quantum-computing breakthrough of its own. The company’s shares finished 45% higher, and were continuing to climb another 16% on Wednesday, recently trading at $7.55 a share, according to FactSet data.

Those moves were big on a percentage-point basis. But to help put things in perspective, the increase in Google’s market cap on Tuesday alone dwarfed the size of all three of the small-cap companies put together.

What is quantum computing?

Quantum computing has been studied for about three decades now, according to William Oliver, the Henry Ellis Warren (1894) professor of electrical engineering and computer science and a professor of physics at the Massachusetts Institute of Technology.

It aims to replace conventional classical computers in tackling certain types of complex problems. Although there are a couple of different methods for putting the technology into practice, Google’s new chip uses superconducting materials and electrical circuits to create qubits, the fundamental logical unit that powers these quantum processes.

In theory, the computing power of these units should dramatically eclipse their classical counterparts. Drug development and other types of complicated research have been cited as potential applications.

But there is one critical problem that engineers still need to untangle: The qubits used to carry out quantum computations are inherently unstable, forcing engineers to employ special algorithms to correct the errors that will inevitably occur.

For years, adding more qubits to a quantum computer didn’t seem to have much of an impact on the accuracy of these computations. If anything, it made them less reliable.

That is what made the latest demonstration from Google so notable. The company’s chip managed to show that the addition of more qubits helped bolster its error-correcting abilities.

“It’s a very important demonstration. We’re still at a very early stage of the technology,” Oliver told MarketWatch on Tuesday. “They showed that you can take qubits that are faulty, add more of them to the system, and the system gets better. This is exactly what we need to have happen if we’re going to commercialize quantum technology.”

Since Google’s Monday announcement, people have had plenty of questions about the long-term impact of quantum computing. One concern that has surfaced repeatedly on platforms like X: could quantum computing potentially threaten the encryption that secures cryptocurrencies like bitcoin?

Oliver said the answer is yes, although such capabilities are likely still 10 years away, if not more. Still, he said it is imperative that cryptocurrencies switch to post-quantum encryption as soon as possible. The National Institute of Standards and Technology has already released its postquantum encryption standards, he pointed out.

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>>> US Hits Southeast Asian Solar Imports With Duties up to 271%


Bloomberg

by Jennifer A. Dlouhy

November 29, 2024


https://finance.yahoo.com/news/us-levies-more-duties-southeast-175114907.html


(Bloomberg) -- Solar imports from Southeast Asia are being unfairly sold in the US below their production costs, according to initial findings of a Commerce Department review that laid out duties of as much as 271% to counteract the practice.

The preliminary determination released Friday marks another victory for US solar panel makers that argued those cheap imports are harming their business and undermining government investments meant to nurture a domestic supply chain.

At issue are imports of crystalline silicon photovoltaic cells — and modules made with them — from Cambodia, Malaysia, Thailand and Vietnam, countries which provide the bulk of US supply of that equipment today. Those nations provide the bulk of US solar cell and module imports. The announcement comes nearly two months after the US agency issued preliminary findings from a separate but related probe that the solar imports from Southeast Asia are unfairly benefiting from government aid.

The investigations represent the latest bid by US manufacturers to confront overseas rivals. After similar duties were imposed on solar imports from China roughly 12 years ago, Chinese manufacturers responded by setting up operations in other Asian nations that weren’t affected by the tariffs. The US probes were triggered by an April petition from the American Alliance for Solar Manufacturing Trade Committee, which represents companies including First Solar Inc., Hanwha Qcells USA Inc. and Mission Solar Energy LLC.

“With these preliminary duties, we are moving closer to addressing years of harmful unfair trade and protecting billions of dollars of investment in new American solar manufacturing and supply chains,” Tim Brightbill, partner at Wiley Rein and lead counsel to the petitioners, said in an emailed statement. “These initial rates are in line with our expectations of market conditions and how these four countries were engaging in unfair trade practices to undermine American manufacturing and jobs.”

Shares of First Solar rose as much as 3.8% after the announcement, while JinkoSolar’s US depository receipts fell as much as 2.9%.

The cases have drawn opposition from some foreign manufacturers and domestic renewable power developers that argue tariffs give an unfair advantage to larger incumbent panel makers operating in the US while raising the cost of solar power projects.

New Rates

Under Friday’s action, imports from Cambodia face a cash deposit rate of 117.12%.

For Malaysia, initial assessed rates range from 17.84% for Jinko Solar Technology Sdn. Bhd. to 81.24% for other suppliers. Hanwha Q Cells Malaysia Sdn. Bhd. was preliminarily assessed to have no dumping margin and therefore was assigned an initial cash deposit rate of 0%.

Imports from a host of exporters in Vietnam, including JA Solar Vietnam Co. Ltd., Jinko Solar (Vietnam) Industries Company Ltd., Boviet Solar Technology Co., Ltd. and Trina Solar Energy Development Company Ltd., face cash deposit rates ranging from 53.19% to 56.4%. Exporters in Vietnam not specified by the Commerce Department in Friday’s action are subject to a rate of 271.28%.

Final decisions in both trade probes are expected next April and the preliminarily assessed duties could be raised, lowered or rejected altogether as a result of the investigations.

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>>> Big Tech is going all in on nuclear power as sustainability concerns around AI grow


Yahoo Finance

by Daniel Howley

October 26, 2024


https://finance.yahoo.com/news/big-tech-is-going-all-in-on-nuclear-power-as-sustainability-concerns-around-ai-grow-201418764.html


Artificial Intelligence has driven shares of tech companies like Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), and Google (GOOG, GOOGL) to new highs this year. But the technology, which companies promise will revolutionize our lives, is driving something else just as high as stock prices: energy consumption.

AI data centers use huge amounts of power and could increase energy demand by as much as 20% over the next decade, according to a Department of Energy spokesperson. Pair that with the continued growth of the broader cloud computing market, and you’ve got an energy squeeze.

But Big Tech has also set ambitious sustainability goals focused on the use of low-carbon and zero-carbon sources to reduce its impact on climate change. While renewable energy like solar and wind are certainly part of that equation, tech companies need uninterruptible power sources. And for that, they’re leaning into nuclear power.

Tech giants aren’t just planning to hook into existing plants, either. They’re working with energy companies to bring mothballed facilities like Pennsylvania’s Three Mile Island back online and looking to build small modular reactors (SMRs) that take up less space than traditional plants and, the hope is, are cheaper to construct.

But there are still plenty of questions as to whether these investments in nuclear energy will ever pan out, not to mention how long it will take to build any new reactors.

A nuclear AI age

While solar and wind power projects provide clean energy, they still aren't the best option for continuous power. That, experts say, is where nuclear energy comes in.

“Nuclear energy is, effectively, carbon-free,” explained Ed Anderson, Gartner distinguished vice president and analyst. “So it becomes a pretty natural choice given they need the energy, and they need green energy. Nuclear [power] is a good option for that.”

The US currently generates the bulk of its electricity via natural gas plants that expel greenhouse gases. As of 2023, nuclear power produced slightly more electricity than coal, as well as solar power plants.

Last week, Google signed a deal to purchase power from Kairos Power’s small modular reactors, with Google saying the first reactor should be online by 2030, with plants expected to be deployed in regions to power Google’s data centers, though Kairos didn’t provide exact locations.

Amazon quickly followed by saying just two days later that it is investing in three companies — Energy Northwest, X-energy, and Dominion Energy — to develop SMRs. The plan is for Energy Northwest to build SMRs using technology from X-energy in Washington State and for Amazon and Dominion Energy to look at building an SMR near Dominion’s current North Anna Power Station in Virginia.

Last month, Microsoft entered into a 20-year power purchasing agreement with Constellation Energy, under which the company will source energy from one of Constellation's previously shuttered reactors at Three Mile Island by 2028.

Three Mile Island suffered a meltdown of its other reactor in 1979, but according to the Nuclear Regulatory Commission, there was no serious impact to nearby people, plants, or animals, as the plant itself kept much of the dangerous radiation from escaping.

In 2023, Microsoft announced it would source power from the Sam Altman-chaired nuclear fusion startup Helion by 2028. Altman also chairs the nuclear fission company Oklo, which plans to build a micro-reactor site in Idaho. Nuclear fusion is the long-sought process of combining atoms that produces power without dangerous nuclear waste. No commercial applications of such plants currently exist.

Microsoft founder Bill Gates has also founded and currently chairs TerraPower, a company working to develop an advanced nuclear plant at a site in Wyoming.

Nuclear is expensive and some technologies are still untested

Nuclear power output has remained stagnant for years. According to US Energy Information Administration press officer, Chris Higginbotham, nuclear power has contributed about 20% of US electricity generation since 1990.

Part of the reason has to do with the fear of meltdowns, like the one at Three Mile Island, as well as the meltdowns at Chernobyl in Ukraine in 1986 and the Fukushima Daiichi plant in Japan in 2011.

Chernobyl was the worst meltdown ever, spreading radioactive contamination across areas of Ukraine, the Russian Federation, and Belarus, resulting in thyroid cancer in thousands of children who drank milk that was contaminated with radioactive iodine, according to the Nuclear Regulatory Commission.

Plant workers and emergency personnel were also exposed to high levels of radiation at the scene. The Fukushima plant suffered multiple meltdowns as a result of a massive earthquake and subsequent tsunami, which caused significant damage to three of the plant's six reactors.

But according to the United Nations Scientific Committee on the Effects of Atomic Radiation (UNSCEAR) as of 2021, “no adverse health effects among Fukushima residents have been documented that could be directly attributed to radiation exposure from the accident.”

Outside of the perception, nuclear plants are expensive and take time to construct.

Georgia Power’s two Vogtle reactors came online in 2023 and 2024, after years of delays and billions in cost overruns. The reactors, known as Unit 3 and Unit 4 were originally expected to be completed in 2017 and cost $14 billion, but the second reactor only started commercial operations in April this year. The final price tag for the work is estimated to top out at $31 billion, according to the Associated Press.

The explosion in cheap energy from natural gas has also made it difficult for nuclear plants to compete financially. Now nuclear companies are hoping SMRs will lead the way in building out new nuclear energy capacity. But don’t expect them to start popping up for a while.

“The SMR conversation is really long term,” Jefferies managing director and research analyst Paul Zimbardo told Yahoo Finance. “I'd say almost all of the projections are into the 2030s. The Amazons, the Googles, some of the standalone SMR developers, 2030 to 2035, which is also what some of the utilities are saying as well.”

What’s more, Zimbardo says, power generated by SMRs is expected to cost far more than traditional plants, not to mention wind and solar projects.

“Some of the projections are well above $100 a megawatt hour,” Zimbardo explained. “To put it in context, an existing nuclear plant has a cost profile of around $30 a megawatt hour. Building new wind, solar, depending on where you are in the country, can be as low as $30 a megawatt hour, or $60 to $80 a megawatt hour. So it's a very costly solution.”

Not everyone is buying the promise of SMRs, either. Edwin Lyman, director of nuclear power safety at the Union of Concerned Scientists, says the small-scale reactors are still an untested technology.

“Despite what one might think of all the brain power at these tech companies, I don't think they've done their due diligence,” Lyman told Yahoo Finance. “Or they're willing to entertain this as a kind of side show just so they have all their bases covered to deal with this postulated massive expansion and demand for data centers.”

Lyman also takes issue with the idea that SMRs will be able to get up and running quickly and begin providing reliable power around the clock at low cost.

“The historical development of nuclear power shows that it's a very exacting technology, and it requires time, requires effort, requires a lot of money and patience,” he said. “And so I think the nuclear industry has been trying to make itself look relevant, despite their recent failures to meet cost and timeliness targets.”

Still, with tech companies promising an AI revolution that requires power-hungry data centers, nuclear may be the only realistic green choice until solar and wind can take over permanently.

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>>> First-ever compact nuclear reactor runs for 8 years without water


Brighterside News

by Joseph Shavit


https://www.msn.com/en-us/money/other/first-ever-compact-nuclear-reactor-runs-for-8-years-without-water/ar-AA1rC21T?cvid=91bb3ea6de3c4228b0388152d3d42bcf&ei=64


In a groundbreaking development poised to reshape the energy landscape of Saskatchewan, Canada, a compact nuclear reactor with the capacity to operate for eight years without water is set to come online by 2029.

Announced by the Saskatchewan government, the $80 million CAD project, led by the Saskatchewan Research Council in collaboration with Westinghouse, aims to demonstrate the capabilities of this innovative microreactor, known as eVinci.

Premier Scott Moe expressed optimism about the project's transformative potential, emphasizing its unique ability to cater to Saskatchewan's energy needs while also heralding a greener future. "Microreactors provide a custom solution for Saskatchewan’s unique energy needs," said Premier Moe.

Westinghouse, the company behind the eVinci, asserts that this technology will not only revolutionize energy production but also significantly reduce air pollution. According to Westinghouse, each eVinci unit will contribute to a yearly reduction of up to 55,000 tons of air pollution.

One of the key features of the eVinci microreactor is its impressive versatility. It will have the capability to generate five megawatts of electricity, produce over 13 megawatts of high-temperature heat, or operate in combined heat and power mode, according to the Saskatchewan Research Council.

To put this in perspective, the Nuclear Regulatory Commission reported in 2012 that a single megawatt of capacity from a conventional power plant can meet the energy needs of 400 to 900 homes in a year.

Westinghouse views the eVinci microreactor as a groundbreaking technology that holds great promise for future energy requirements.

Microreactors are notable for their portability and potential to provide power to remote and underserved locations. The U.S. Department of Energy confirms that various types of microreactors are currently in development across the United States.

In terms of physical installation, the eVinci microreactor will be above ground and occupy a relatively small footprint. Remarkably, the supporting infrastructure for the unit can fit inside a standard hockey rink. This compact design allows for easy integration into existing power grids and facilitates pairing with renewable energy sources.

One of the most noteworthy aspects of the eVinci microreactor is its innovative "heat pipe technology," which eliminates the need for water to cool down the system. Unlike traditional nuclear reactors, which rely on vast quantities of water for cooling, the eVinci's cooling system is water-independent.

Moreover, after approximately eight years of service, the eVinci unit can be removed for disposal, making way for a replacement unit, all according to Westinghouse. The simplicity of this design, often likened to that of a battery, enhances its appeal as a sustainable and efficient energy source.

In the United States, there are currently 54 commercial nuclear power plants, as reported by the Energy Information Administration, and Canada boasts six nuclear power stations, according to the Canadian government.

Despite their impressive energy output, traditional nuclear power plants generate substantial amounts of nuclear waste—approximately 2,205 tons per year in the U.S., which is less than half the volume of an Olympic swimming pool.

However, the waste generated by these plants consists of ceramic pellets, eliminating the risk of hazardous radioactive materials. Researchers are continually exploring innovative methods, such as utilizing bacteria, to manage and reduce this waste more effectively.

Westinghouse's approach with the eVinci microreactor is markedly different. The company plans to take responsibility for the used fuel, either returning it to their facilities or securely storing it deep underground for long-term safekeeping.

This design not only mitigates the risks associated with high pressure and coolant loss but also allows for the extraction of valuable heat for industrial applications.

The initial eVinci unit is being hailed as a proof-of-concept, paving the way for future installations. Saskatchewan Research Council CEO Mike Crabtree affirmed the significance of this pioneering project, emphasizing its role in preparing the council to assist communities and industries in future endeavors.

"What we learn through this project will prepare [the council] to assist communities and industries in future projects," stated Crabtree in the official press release.

"Westinghouse is proud to be working with the team at SRC on this vital project, and for the support from Premier Moe and the Government of Saskatchewan," Westinghouse President and CEO Patrick Fragman said. "The eVinci™ battery technology is the perfect fit for Saskatchewan since it is fully transportable. It also provides carbon-free electricity and heat, uses no water, and can be completely removed from site after operating continuously for eight years or more."

SRC is Canada's second largest research and technology organization. With nearly 350 employees, $232 million in annual revenue and 76 years of experience, SRC provides services and products to its 1,600 clients in 22 countries around the world. SRC safely operated a SLOWPOKE-2 nuclear research reactor for 38 years before decommissioning it in 2021.

With its compact design, water-independent cooling system, and potential to harness industrial heat, the eVinci microreactor showcases the possibilities of modern nuclear technology. As the first of its kind, it serves as a harbinger of a cleaner, more sustainable energy future for Saskatchewan and beyond.

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>>> 3 Nuclear Energy Stocks to Buy and Hold Forever


Zacks

by Benjamin Rains

Aug 23, 2024


https://finance.yahoo.com/news/3-nuclear-energy-stocks-buy-110000268.html


Today’s episode of Full Court Finance at Zacks explores nuclear energy’s rapid rise and why nuclear energy is poised to become one of the most important industries in the economy and on Wall Street.

The episode dives into three nuclear energy-focused stocks—Rolls-Royce (RYCEY), BWX Technologies, Inc. (BWXT), and Constellation Energy (CEG)—that investors might want to buy now and hold for long-term upside.

Nuclear energy has become one of the hottest industries on Wall Street over the last year as investors realize its ability to power the growing global economy as the world attempts to curb fossil fuel use. On top of that, the energy-hungry artificial intelligence arms race sparked technology giants such as Amazon, Microsoft, and many others to commit to nuclear energy expansion and innovation.

Two of the top six performing S&P 500 stocks so far this year are nuclear energy companies. The buildout of the nuclear-powered economy will cost tens of trillions of dollars and take decades, even though nuclear energy has supplied around 20% of U.S. electricity for over 30 years running (and 10% of the current global total).

The U.S. and many other nations have done a 180-degree turn on nuclear energy technology over the last few years as key players across technology, finance, the government, and beyond finally throw their collective force behind nuclear energy. The U.S. government has rolled out multiple efforts to support the nuclear energy resurgence and pledged to help triple global nuclear energy capacity by 2050.

Outside of the U.S., China, India, and tons of other key economies are going all in on nuclear. Investors are pouring money into the largest nuclear power producers, uranium (nuclear fuel) miners, and other standout players.

Now let’s look at our three nuclear energy stocks to consider buying now.

Rolls-Royce (RYCEY) is a historic engine maker of complex power and propulsion solutions for aircraft, ships, and beyond. Rolls-Royce is utilizing its expertise in nuclear propulsion systems to design cutting-edge small modular nuclear reactor (SMR) technology and micro-reactors. Rolls-Royce’s SMR tech is making its way through the approval process to be rolled out in the U.K.

Rolls-Royce will be able to achieve these lofty nuclear energy goals because it is successfully revamping and streamlining its business to boost profitability after a disappointing decade.

Former oil industry executive Tufan Erginbilgic took over as CEO in January 2023, aiming to quadruple Rolls-Royce’s profits in the next five years and complete other key initiatives. Rolls-Royce raised its full-year guidance on August 1 and said it plans to reinstate its dividend.

Rolls-Royce is projected to grow its adjusted earnings by 35% in FY24 and 19% in FY25 on the back of 30% and 7%, respective revenue expansion.

Rolls-Royce’s recent upbeat EPS revisions help it earn a Zacks Rank #2 (Buy) and extend its impressive run of positive EPS revisions over the past year and a half.

Rolls-Royce stock soared over 750% off its 2022 lows, including its 155% YTD surge. Rolls-Royce stock hit new 52-week highs of $6.50 a share on Thursday. Despite the climb, Rolls-Royce trades 34% below its average Zack price target and 70% below its all-time highs.

On the valuation front, Rolls-Royce trades in line with its 10-year median and near its industry at 24.9X forward 12-month earnings.

BWX Technologies (BWXT) is a top supplier of nuclear technologies, components, and fuel to the U.S. government, including U.S. naval submarines and aircraft carriers. BWX Technologies is actively growing its commercial nuclear power segment and other non-defense units.

BWXT owns one of the largest commercial nuclear equipment manufacturing facilities on the planet. BWXT is expanding that operation to “support ongoing and anticipated customers’ investments in Small Modular Reactors, traditional large-scale nuclear and advanced reactors, in Canada and around the world.”

BWX Technologies has landed deals and partnerships with GE Vernova, the Wyoming Energy Authority, Bill Gates-backed SMR company TerraPower, and beyond. BWXT’s beat-and-raise second quarter was supported, in part, by a growing “appetite for nuclear solutions across the global security, clean energy, and medical markets.”

BWXT is projected to post solid mid-single-digit sales and earnings growth in 2024 and 2025.

BWX Technologies stock has climbed 250% in the last 10 years to outpace the S&P 500’s 190% and its industry’s 110%. BWXT broke out to new highs last summer, with the stock up 38% the last 12 months.

BWXT is trading above its 21-week and 21-day moving averages while sitting 5% below its average Zacks price target.

Constellation Energy (CEG) is the largest nuclear power plant operator in the U.S., helping it produce 10% of the country’s total clean energy. Constellation boasts over 20 nuclear reactors at roughly a dozen sites across the Midwest, the Mid-Atlantic, and the Northeast.

Constellation benefits from the nuclear energy-focused aspects of the Inflation Reduction Act. The U.S. government is helping provide a price floor for nuclear power to boost the expansion of the domestic nuclear industry.

Constellation is retrofitting its current nuclear power plants to help keep them running for a lot longer. The company is also expanding into next-gen nuclear power plant technologies.

Constellation aims to grow through mergers and acquisitions and return capital to shareholders via buybacks and dividends. Constellation announced in early 2024 its plans to boost its dividend by 25% in 2024, exceeding its 10% annual growth target.

Constellation lifted its adjusted 2024 earnings guidance in early August and reaffirmed its ability to grow its adjusted EPS by at least 10% from 2024-2028. Constellation is projected to grow its adjusted earnings by 57% in 2024 and 18% in 2025.

Constellation shares soared since their 2022 IPO. CEG has climbed by 150% in the past two years and 70% YTD. Thankfully, for investors who ‘missed’ the run, Constellation trades 15% below its May records after falling alongside tech and other growth stocks.

CEG is attempting to retake its 50-day moving average. On top of that, CEG's improving EPS outlook, mixed with its recent downturn, has it trading at a 32% discount to Constellation's highs at 21.8X forward earnings.

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>>> Semiconductor ETFs -- These companies are all intriguing, and many of them, but perhaps not all, will be outstanding performers in the years and decades ahead. (Much will also depend on the price at which you invest in them, if you do, so aim to buy when they appear undervalued or at least reasonably valued.)

One way to play it a bit safe — while also aiming for outsized returns — is to invest in semiconductors via ETFs that focus on them. Check out these that have solid track records:

iShares Semiconductor ETF (NASDAQ: SOXX)

VanEck Semiconductor ETF (NASDAQ: SMH)

SPDR S&P Semiconductor ETF (NYSEMKT: XSD)

Invesco Semiconductors ETF (NYSEMKT: PSI)

Consider keeping some of your assets in semiconductors — whether via individual stocks or ETFs. Or both!

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https://finance.yahoo.com/news/7-semiconductor-stocks-could-millionaire-093800468.html


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>>> With marijuana reclassification on the table, here's a breakdown on Schedule 3 drugs


by Sarah Gleason

USA TODAY

May 17, 2024


https://www.usatoday.com/story/news/politics/elections/2024/05/17/marijuana-reclassification-schedule-1-vs-schedule-3/73729781007/


President Biden endorsed the Justice Department's move to reclassify marijuana from a Schedule I drug to a Schedule III drug Thursday. In his X, formerly known as Twitter, video, the president said the move is in line with his mission of "reversing long-standing inequities" regarding the criminalization of marijuana, calling the move "monumental."

"Look folks, no one should be in jail merely for using or possessing Marijuana," the president said in his video statement.

What is a Schedule 3 drug?

The United States Drug Enforcement Administration puts regulated drugs into five categories, per the Controlled Substance Act from 1970, each indicating a level of "abuse potential," with five being the lowest and one being the highest, while also taking into account the drug's use in medicine, according to the DEA.

Schedule I drugs have no approved medical usage, according to the DEA, and include substances like heroin, LSD, and ecstasy, which are highly likely to be abused. In comparison, Schedule V drugs have the least potential for abuse, and the drugs in this group are usually used for "antidiarrheal, antitussive, and analgesic purposes," according to the DEA.

Schedule III drugs, which is where marijuana could move to, as defined by the DEA, are "drugs with a moderate to low potential for physical and psychological dependence." If pot does become a Schedule III drug, it would be in company with testosterone and Tylenol (which contains less than 90 milligrams of codeine), according to the DEA.

Does reclassifying marijuana make it legal?

No. This change from the DEA would not make weed legal nationally; instead, it simply shows a shift in how the DEA sees marijuana's risk for abuse and use in medical scenarios. Marijuana will still be a controlled substance.

However, 24 states and Washington DC have made marijuana legal for recreation, and another 14 states have made it legal for medical use, according to the Pew Research Center.

When will the change happen?

The report now faces a 60-day period for public comment before being approved.

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>>> Insurers Rake In Profits as Customers Pay Soaring Premiums


The Wall Street Journal

by Jean Eaglesham

January 25, 2024


https://finance.yahoo.com/m/422624f8-879a-33ab-ae1a-6c8e2cc0d00d/insurers-rake-in-profits-as.html


The pain for home- and auto-insurance customers is quickly becoming investors’ gain. Insurance giants’ shares and profits are hitting records, thanks in part to steep rate hikes. The jump came after the company reported a record profit for its fourth quarter, boosted by double-digit rate increases in its business and personal insurance units...

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>>> Tap Into the Insurance Industry's Momentum With These ETFs


Zacks

by Yashwardhan Jain

January 23, 2024


https://finance.yahoo.com/news/tap-insurance-industrys-momentum-etfs-212500904.html


The rising frequency and seriousness of potential global challenges, ranging from climate change to cybercrime, secures the insurance industry’s ability to act as a financial cushion. According to Deloitte, insurers realizing the need to proactively prevent losses from occurring in the initial stages is driving the industry’s growth.

After experiencing a positive shift in its trend in the second half of last year, the U.S. property and casualty industry has continued with its robust momentum entering 2024. Significant premium increases, a slowdown in the growth of claims costs and improved investment returns have all had a beneficial effect on the sector, giving a boost to profitability.

The S&P Insurance Select Industry Index has gained 8.54% over the past year, as of 17 Jan 2024, compared to the broader S&P 500 Financials Index, which added about 3.82% over the past year.

Growth in Digits

According to Swiss Re, the industry ROE is estimated to surge to 9.5% in 2024 and reach 10% in 2025, hinting at a substantial increase from the 5% recorded in 2023, backed by robust premium growth and reduced inflationary pressures. Estimates for ROE are supported by solid premium growth expectations of 7% and 4.5% for 2024 and 2025, respectively.

Combined ratio, a comprehensive measure of an insurance company’s profitability, used to evaluate how well the company is operating on a daily basis, is anticipated to improve significantly. The ratio is projected to be 98.5% for both 2024 and 2025, implying a notable improvement from the estimated 103% for 2023. A ratio below 100% signifies that the company is realizing an underwriting profit.

Direct premium written (DPW), which represents the growth of a company’s insurance business during a particular period, is forecast to grow at 7% in 2024, indicating an upward revision from 5.5% in 2023.

Industry’s Anticipated Earnings Success

According to Factset, the insurance industry is expected to be the primary driver of positive year-over-year earnings growth for the financial sector, growing by a staggering 26%. Year-on-year earnings growth at the sub-industry level is led by the property & casualty insurance, growing at 48%, followed by reinsurance (30%) and multi-line insurance (17%).

Seventeen out of the top 20 insurers trading on major U.S. exchanges experienced an uptick in market capitalization during the fourth quarter of 2023, per S&P Global Market Intelligence, with most insurers exhibiting increases of 6% or more.

According to Zacks Earnings Trend, Insurance - Multi Line and Insurance - Property And Casualty have a growth rate of 8.04% and 8.02%, respectively.

ETFs in Focus

Below, we highlight a few insurance ETFs for investors to capitalize on the industry’s continuing momentum.

SPDR S&P Insurance ETF (KIE)

SPDR S&P Insurance ETF seeks to track the performance of the S&P Insurance Select Industry Index with a basket of 48 securities. The fund has amassed an asset base of $738.17 million and charges an annual fee of 0.35%.

SPDR S&P Insurance ETF has a major exposure of 50.43% in property and casualty insurance, followed by life and health insurance, with a share of 24.84% of its assets. The fund has gained 6.78% over the past three months and 12.12% over the past year.

iShares U.S. Insurance ETF (IAK)

iShares U.S. Insurance ETF seeks to track the performance of the Dow Jones U.S. Select Insurance Index, with a basket of 55 securities. The fund has gathered an asset base of $476.5 million and charges an annual fee of 0.40%.

iShares U.S. Insurance ETF has major exposure of 67.88% in property and casualty insurance, followed by life and health insurance, with a share of 24.13% of its assets. The fund has gained 9.67% over the past three months and 11.22% over the past year.

Invesco KBW Property & Casualty Insurance ETF (KBWP)

Invesco KBW Property & Casualty Insurance ETF seeks to track the KBW Nasdaq Property & Casualty Index, with a basket of 26 securities. The fund has amassed an asset base of $200.9 million and charges an annual fee of 0.35%.

Invesco KBW Property & Casualty Insurance ETF has an exposure of 60.09% in large-cap securities. The fund has gained 8.01% over the past three months and 7.06% over the past year.

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>>> SEC ends crypto drama by giving the green light to 11 bitcoin ETFs


Yahoo Finance

by David Hollerith and Jennifer Schonberger

January 10, 2024


https://finance.yahoo.com/news/sec-ends-crypto-drama-by-giving-the-green-light-to-11-bitcoin-etfs-165408349.html


The moment the crypto world wanted finally happened Wednesday. And this time it was for real.

Regulators on Wednesday gave money managers the green light to launch 11 spot bitcoin exchange-traded funds, allowing everyday investors to get exposure to the world’s largest cryptocurrency without having to own it.

The ETFs, which begin trading Thursday, could make bitcoin a potential staple in 401(k)s, IRAs, and pension plans and give it mainstream acceptance.

The Securities and Exchange Commission made the announcement roughly 24 hours after a fake social media post claimed those approvals had already been granted.

The chaos triggered by that unauthorized post on X reverberated from Wall Street to Washington while attracting new scrutiny to the SEC, a longtime foe of the industry that is still in the middle of a widespread crackdown on some of crypto’s major players.

The price of bitcoin seesawed Tuesday and Wednesday as investors tried to make sense of the mishap, which erased tens of billions in market value in just minutes.

SEC Chair Gary Gensler made it clear in a statement Wednesday that his agency "did not approve or endorse bitcoin" when it signed off on the new products and called Wednesday's announcement "the most sustainable path forward" following a key court defeat on this issue last summer.

"Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto," he said in his statement.

One SEC commissioner, Caroline Crenshaw, published a dissenting opinion that called the agency's actions "unsound and ahistorical."

"I am concerned that these products will flood the markets and land squarely in the retirement accounts of US households who can least afford to lose their savings to the fraud and manipulation that appears prevalent in the spot bitcoin markets," she said in her statement.

The SEC has rejected such applications in the past, arguing the products were vulnerable to market manipulation.

The list of applicants approved by the SEC Wednesday included some of the biggest names on Wall Street, from BlackRock (BLK) to Franklin Templeton (BEN), as well as a number of firms better known in the crypto world.

These issuers competed with one another in the run-up to their launches to offer the lowest fees, hoping to attract as many investors as possible once ETFs begin trading.

Other big Wall Street players plan to be part of the action, as well. JPMorgan Chase (JPM) and Goldman Sachs (GS) are among the giant banks that have offered to help some of these money managers create and redeem shares of their new funds.

Optimism about these approvals helped bitcoin surge 164% in 2023 and start 2024 by rising above $47,000, its highest level in nearly two years.

A decade in the making

The crypto industry has been waiting more than a decade for this moment.

The first application to create a spot bitcoin ETF came in 2013 from crypto entrepreneurs and twins Tyler and Cameron Winklevoss, famous for their early role in the creation of Facebook.

Since then, the SEC has denied more than 30 similar applications.

A key turnaround moment came last year in June when the world’s biggest money manager, BlackRock, filed for a spot bitcoin ETF. The interest from one of Wall Street’s biggest names sparked other asset managers to follow suit.

Another important development came last August when one of the ETF applicants, Grayscale Investments, won a key legal victory over the SEC. Grayscale had sued the SEC in 2022 after it wasn't allowed to convert its Grayscale Bitcoin Trust (GBTC) into a spot bitcoin offering.

Its core argument was that the agency had already approved exchange-traded products that held bitcoin futures contracts and thus had "acted arbitrarily and capriciously."

A three-judge panel of the District of Columbia Court of Appeals in Washington sided with Grayscale, saying the firm had "advanced substantial evidence" its product was similar to bitcoin futures ETFs previously approved by the SEC.

That forced the SEC to reconsider Grayscale’s spot bitcoin ETF application, along with others filed by rival money managers.

"We are now faced with a new set of filings similar to those we have disapproved in the past," Gensler said in his statement Wednesday. "Circumstances, however, have changed."

One of the applicants, Ark Investment Management CEO Cathie Wood, told Yahoo Finance that the dominant providers of spot bitcoin ETFs will be those that take in the most money from investors right out of the gate.

The winners "will be a few and it will be the most liquid," she said.

Historically, launches for other bitcoin products have sent bitcoin’s price on a wild ride.

It happened in 2017 with the launch of the country’s first bitcoin futures contracts and then in 2021 with the SEC’s approval of the first bitcoin futures ETFs. Prices soared and then fell by large amounts in the year following the launches.

In recent weeks, much debate has raged over whether bitcoin will rise or fall once the lauded moment of approval comes to pass.

Gautam Chhugani, managing director of the research arm for Bernstein, said his team estimates such financial products will garner $10 billion or more in investment flows through the end of 2024 and "hundreds of billions of dollars" over a two-year period.

That, he added, will help push bitcoin’s price even higher.

"We do think that bitcoin goes to $150,000 by 2025," Chhugani added.

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>>> Solar stocks poised for comeback in 2024


Yahoo Finance

by Ines Ferré

Dec 8, 2023


https://finance.yahoo.com/news/solar-stocks-poised-for-comeback-in-2024-193803917.html


Solar stocks have gotten decimated this year amid high interest rates spurred by the Federal Reserve to tame inflation. Customers have been reluctant to spend on installations, and companies' investment projects have gotten more expensive.

A policy change that lowered solar energy incentives in California also impacted the industry in the US. The state slashed the subsidy awarded to rooftop panel owners sending excess power to the grid.

The solar and wind energy benchmarks Invesco Solar ETF (TAN) is down 36% year to date, and Global X Solar ETF (RAYS) has lost more than 40% during the same period.

However, Wall Street sees tailwinds next year that could help turn the tide for the clean energy industry.

On Friday Morgan Stanley analysts upgraded First Solar (FSLR), a solar panel maker, to Overweight, raising their price target from $214 to $237 per share.

“After the 20% sell-off in the past three months, we see an attractive risk-reward profile for the stock,” Morgan Stanley equity analyst Andrew Percoco and his team wrote in a note to clients this week.

“We believe First Solar offers one of the strongest risk-adjusted earnings profiles within our US Clean Tech coverage with its sold-out position through 2026,” they added, referring to the thin-film module manufacturer's backlog.

The note also reiterated renewable energy giant NextEra (NEE) and solar company Altus Power (AMPS) as names on their high conviction Overweight list. The analysts have a $76 price target on NextEra and $9 price target on Altus Power. Year to date, those stocks are down 29% and 17%, respectively.

'Improvement in clean energy valuations'

One of the tailwinds for renewables going into 2024 is the market expectation of lower interest rates at some point during the year. Investors are betting the Fed can start to cut rates as inflation eases and the labor market normalizes.

“If rates fall in 2024, as our economists and strategists are predicting, we could see a meaningful improvement in clean energy valuations,” wrote Morgan Stanley's analysts.

The prices of solar panels, battery storage, and inverters, which increased over the last couple of years, are also showing signs of deflation ahead.

“We see some evidence that supports a more optimistic view (for developers) of the cost trend for these technologies moving into 2024,” said the note. “Prices for solar panels and components have declined meaningfully since peak levels in the summer of 2023.”

Citi analysts also recently noted the global solar space is dominated by equipment manufactured in China, but US companies are poised to increase market share next year.

“With rising importance of emission cuts and opportunities from solar equipment production, more countries are implementing trade policy protectionism to ensure local supply," Citi managing director Pierre Lau and his team wrote in a note to clients.

An example is the Inflation Reduction Act (IRA) passed last year, aimed at incentivizing the use of solar power via subsidy support for local manufacturing.

"Our analysis shows that outside of China, the US and India appear the most feasible for solar equipment production,” said the note.

Citi’s Buy recommendations include Altus Power and solar and storage company SunPower (SPWR), which is currently down about 70% year to date.

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>>> Metaverse ETFs to consider


https://www.fool.com/investing/stock-market/market-sectors/information-technology/metaverse-stocks/


Maybe you can’t decide which metaverse stock to buy, or maybe you want broader exposure than a single stock. Consider buying a metaverse-focused exchange-traded fund (ETF). One option is the Roundhill Ball Metaverse ETF (METV -0.1%), which includes all five of the stocks already listed here plus dozens more, providing instant diversification for shareholders.

Another possibility is the ProShares Metaverse ETF (VERS 0.58%). Of the five stocks listed here, Cloudflare is the only one the ProShares Metaverse ETF doesn't hold shares of. It has fewer holdings than the Roundhill Ball Metaverse ETF. But its expense ratio (fee) is a smidge lower, which might make it more attractive to some investors.

Yes, unlike stocks, ETFs are subject to ongoing fees, and these two ETFs are no exception. Therefore, investors need to be sure they know how to invest in ETFs before buying shares.

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>>> Uranium Investors Bet Big On Nuclear Renaissance


OilPrice.com

By Alex Kimani

Sep 24, 2023


https://oilprice.com/Alternative-Energy/Nuclear-Power/Uranium-Investors-Bet-Big-On-Nuclear-Renaissance.html


Dozens of governments and influential bodies that were formerly opposed to nuclear energy are now openly embracing and hailing it as a necessary player in the global electrification and decarbonization drive.

Uranium markets have lately been on a roll after prices for yellowcake gained more than 20% YTD.

Global uranium production dropped by 25% from 2016 to 2020 amid low prices before recovering slightly to 49,355 metric tons last year.

Uranium and the nuclear energy sector are enjoying a renaissance. There has been a palpable shift in support for nuclear power amid the transition to low-carbon fuels as well as a renewed push to enhance energy security after the global energy crisis triggered by Russia’s war in Ukraine.

Dozens of governments and influential bodies that were formerly opposed to nuclear energy are now openly embracing and hailing it as a necessary player in the global electrification and decarbonization drive. And few have been as monumental as Finland's Green Party which voted overwhelmingly in 2022 to categorize nuclear power as a form of sustainable energy after decades of strong opposition. A third of Finland's electricity is generated by nuclear power.

“I am very happy and proud. This is a historical moment in the history of the green movement, as we are the first green party in the world to officially let go of anti-nuclearism.” said Tea Törmänen, a voting member and chair of the Savonia/Karelia chapter of Viite, the pro-science internal group of the party, shortly after the vote.

Other European nations quickly followed suit with Belgium, Spain and Sweden supporting nuclear energy.

Not surprisingly, uranium markets have lately been on a roll after prices for yellowcake gained more than 20% YTD, better than any other metal and topping $65/lb for the first time in 12 years.

Uranium-based investment vehicles and ETFs have performed even better than the metal they track: Global X Uranium ETF (URA) is up 29.2% in the year-to-date; Horizons Global Uranium Index ETF (HURA.TO) has returned 40.3% while VanEck Uranium+Nuclear Energy ETF (NLR) has gained 28.5%. Uranium miners have not disappointed either: Cameco Corp. (NYSE:CCJ)+75.2%, Uranium Energy Corp. (NYSE:UEC)+40.1% and Consolidated Uranium Inc. (OTCQX:CURUF)+30.7%.

Uranium Shortage Bites

But the biggest bullish catalyst yet for uranium bulls has been supply deficits at a time when demand is surging. Global uranium production dropped by 25% from 2016 to 2020 amid low prices before recovering slightly to 49,355 metric tons last year.

The coup in Mali, which produces ~4% of the world's total, and Cameco's falling production due to difficulties at its Cigar Lake mine and Key Lake mill in Canada have also constrained supply. Global supplies remain constrained mainly due to years of under-investment in new production, monopoly of state-owned entities, transportation risks and geopolitical uncertainties.

Meanwhile, in its latest biennial report, the World Nuclear Association has predicted that demand for uranium used in nuclear reactors will surge 28% by 2030 and nearly double by 2040 as governments ramp up nuclear power capacity in a bid to meet zero-carbon targets.

Sachem Cove Chief Investment Officer Michael Alkin has told The Wall Street Journal that the uranium market remains “very tight’’ and prices are likely to move even higher heading into 2024. Alkins says he expects utilities to start ramping up talks for uranium conversion and enrichment through private negotiations during the fall or requests for proposals.

Cameco says the dual agendas of clean energy and energy security have so failed to translate into a stronger primary supply pipeline. According to the uranium miner, the uranium market is still in the "relatively early stages of the cycle as uncovered uranium requirements by utilities remains elevated," and only "sustained long-term uranium demand will ultimately drive the company's future production plans."

Cost and Policy Risk

Like all investment theses, uranium bulls will have to contend with some key risks. First off, over the decades, the nuclear sector has become notorious for huge cost overruns by uranium projects. Unfortunately, project managers, financial planners and financiers do not appear to be any closer to solving this conundrum in this age of AI.

Not only has the cost of building new nuclear plants sky-rocketed in recent years but plants currently under construction are massively exceeding cost estimates. A large 3,200 megawatt (MW) plant planned to be built in southwest England by France's EDF , the world's largest nuclear operator, is now estimated to cost ~$40 billion, or 30% higher than the initial estimate. Smaller projects are not immune to this problem either. NuScale Power’s 462-MW plant under construction has seen cost estimates increase from $58 per megawatt hour in 2021 to $89/MWh in 2023, a more than 50% jump in the space of just two years.

Second, another major nuclear accident like Three Mile Island or Fukushima might rapidly sour the public sentiment and even force a policy shift. A major thorium breakthrough might spell doom for the uranium sector since thorium reactors do not carry the same risk of a catastrophic meltdown inherent in nuclear reactors powered by uranium.

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[wow_happens28]

Complete List of Stores Closing in 2023

Amazon must be doing well>>>>>

https://thekrazycouponlady.com/tips/money/stores-closing-in-2023

[gfp927z]

I know what you mean about Mexicans - they work their tails off and never complain, even in sweltering heat or freezing cold. I have a condo, and many of the outdoor lawn + tree maintenance guys are Hispanic, and I see first hand how hard these guys work. The current immigration policy in the US is a cynical attempt by the Deep State ghouls to deliberately weaken the country, make it lose its cultural identity, etc. But most of the people coming in that I've come across seem solid and much harder working than people who have been here for generations.

There's a State Park nearby here for walking / hiking (Phila suburbs), and in addition to Hispanics there are tons of people from all over - Eastern Europe, Russia, Asia, India, Middle East, you name it, and they seem like solid people. Anyway, longer term I think the US will be stronger from the infusion of 'new blood'. That said, the sheer number of immigrants coming in is too high, and they need to have some annual limits to allow time for assimilation, etc, and also they should be screening out known criminals, carriers of contagious diseases, etc. Most of that screening isn't being done however, because the Deep State's main motivation for the open borders is to weaken/screw up the US, just like the schools are meant to dumb down the kids, the drugs they (CIA) bring in are meant to weaken and wreck society ahead of the coming 1984 dystopia.

>> together on another planet <<

Yes, I hear ya, and feel exactly the same way. But at our age I guess we just have to make the best of things. I remember saying to an older guy 'Nice day', and he replied with a smile that 'Any day you wake up is a nice day' :o)





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[wow_happens28]

GFP, With LAND and DBA, I was trying a trading system and it was not working like I thought, only lost a couple hundred, but was just toying. I could see the light. All I got is RIBT, waiting for the final dispersal which I hope happens in early August. Guessing they are waiting for the Q2 financials.

Santefe2 is not one to debate. He is a closed minded liberal. Dew had a great active poster there, OakesCS, Charley Oakes. He is a scientist for a major oil company and really knows his stuff. He got so ticked at Santefe that he quit posting a couple of years ago. I was a roofing and siding contractor for 30 years, retired in 2008. Santefe was talking up solar panels on roofs and I could not tell him the costs and hassle of doing a second roof or even roof repair with solar panels already on the the roof.
1. To do a 2nd roof, you got to take the panels down and reinstall them to do the roof. So, double the original labor of the original solar install. If the installer would not do it, no contractor with 10% of a brain would want anything to do with the job.
2. Roof leak" maybe a simple job, but remove panels to get at it? A $200 repair might need the solar company to remove and reinstall.
3. They were just coming in the last 1/2 of my career. I would not touch the job, it would be what we call a "Drive By".
4. I did do 2 jobs that had solar, but the owners had them taken down before i started the job and thrown away before I started the job, by agreement. They were not saving them anywhere near the cost of them after 10 years, in one of the 2. I had reroofed his house 20 years earlier, then 5 years later put them up. 15 years an losing money.
5. Imagine a roofer trying to take them down and reinstall and he breaks a panel and they probably won't make the same panel 10 years down the road. OMG.

BTW, I passed up a couple of siding jobs that had panels on the south side of the house.

Summary, they are a rip off and might save money if electric rates inflation adjusted went up 8 fold or more and if they lasted 20 years and redid the roof and solar at the same time.

My folks had a double wide trailer winter home on Key Largo. They had a big shed with a shower in it. Above it was a big black water tank with a valve water line to fill it as needed. By noon everyday it was warm enough to take a shower. Now, that was efficient solar and it was free, except for the big flat tank.

GFC, on the whole, I love Mexican people. 2/3's the way through my business years we had a big hailstorm here in Minnesota in 1998 and storm chasers brought in Mexican roofers from Texas, and many stayed and more followed with other storms. Near the end I had 2 crews of Mexicans. They would have worked 12 hours per day 6 days a week if I had the work, needed church on Sunday. Before them I had like white alcoholics, etc. I had only 1 Black in 30 years and he only lasted 1 month. I will take the Mexicans any day. The problem now is our government is ruining them with free money like they have done to the Blacks. My lover and I hope there is reincarnation and she and I will end up reincarnated together on another planet.

[gfp927z]

Btw, Looking at the LAND chart, it looks like it could move up to test the 200 MA, but still have to be wary of a return to re-test the double bottom from March and May. The other farmland REIT (FPI) is already back above its 200 MA, and has held up better overall. I don't really understand that sector very well though. In the broader agro areas, the DBA chart isn't looking too bad, but looks like MOO is still in a gradual downtrend. I figure those ETFs would be better than trying to pick a particular commodity.

Fwiw, I've been mainly sticking to the S+P 500. I wanted to just sit with it, but as it gets more overextended I've been selling when the RSI gets in the 70s, then re-buying after the pullback. So far so good, and it keeps things from getting too boring :o) Powell & Co return soon, so that's usually a time to take profits, wait for the drop, then reload. That's been the pattern anyway. Grumpy Jerome always seems to tank the market for a few days. I already took profits though, so not sure if I'll bother trying to time this Fed meeting, may just wait for the post meeting 'tank'.

Oh well, dog days of summer. The new BRICS currency announcement is coming Aug 22, but even bigger will be the concurrent announcement that Saudi Arabia is joining the BRICS. Yikes, bye bye Petrodollar, ugh. Dark days approach for the US / dollar, but we can't assume the unraveling will happen immediately, it might take some time (?) But per the old saying - 'bankruptcy happens gradually, then all at once'..



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Yes, best to stay far away from the Bitcoin / crypto sector imo. People have made money trading it, but the central bank finance ghouls were never going to allow competition to their monopoly control over what we use as 'money'. The CBDC is their future, so cryptos are being 'deep sixed' and regulated out of existence.

Or so goes the logic, but now we see Blackrock entering with their spot Bitcoin ETF. According to the article, the ETF's 'surveillance-sharing agreement' aspect is the clincher that will allow the SEC to approve the ETF. So presumably any anonymity aspect to Bitcoin will be gone, but the 'surveillance-sharing' feature could be the main thrust, and have other functions. I generally stay away from Blackrock ETFs anyway.

Bitcoin and the cryptos are currently having a big bounce off the bottom, which I guess shouldn't be too surprising since the US dollar is tanking so hard lately. Longer term the dollar's prospects do not inspire confidence, thanks to ominous factors like de-dollarization, the parabolic US debt, the new BRICS currency, etc. But the crooks at Blackrock will always find a way to profit, perhaps as you said, by 'selling and shorting into the rally they are creating'. Personally, I'll stay clear of the crypto space.




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[wow_happens28]

That Blackrock story is getting around. I wonder if they are selling and shorting into the rally they are creating. Blackrock and Vanguard control most everything these days.

Cryptos broke a declining resistance lines. I could see RIOT going to if it breaks the March 2022 high then to 45 anyway. Not buying.

https://stockcharts.com/h-sc/ui?s=RIOT&p=D&yr=5&mn=0&dy=0&id=p54860689852;

[gfp927z]

Spot bitcoin ETF - >>> BlackRock CEO Larry Fink Talks Up Crypto Demand From Gold Investors


CoinDesk

by Jamie Crawley

July 14, 2023


https://finance.yahoo.com/news/blackrock-ceo-larry-fink-talks-151613849.html


Larry Fink was in a bullish mood on Friday as he spoke of the increasing demand he is seeing for cryptocurrencies among gold investors.

Appearing on CNBC following his company's second-quarter earnings report, the CEO of $8.5 trillion asset manager BlackRock (BLK) said "more and more" gold investors have been asking about the role of crypto over the last five years, highlighting the role exchange-traded funds (ETFs) have had in democratizing access to gold, as they could do in crypto.

"If you look at the value of our dollar, how it depreciated in the last two months and how much it appreciated over the last five years ... an international crypto product can really transcend that," he said. "That's why we believe there's great opportunities and that's why we're seeing more and more interest. And the interest is broad-based [and] worldwide."

BlackRock filed an application to list a spot bitcoin ETF last month with a surveillance-sharing agreement worked in, which could prove to be the deciding factor in the U.S. Securities and Exchange Commission (SEC) finally approving such a product after rejecting dozens of applications in recent years.

"As with any new markets, if BlackRock's name's going to be on it, we're going to make sure it's safe and sound and protected," Fink added.

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>>> 11 Best Recycling Stocks To Buy Now


Insider Monkey

by Hamna Asim

December 21, 2022


https://finance.yahoo.com/news/11-best-recycling-stocks-buy-165844433.html


In this article, we discuss 11 best recycling stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Recycling Stocks To Buy Now.

The global waste recycling services market was valued at $57.69 billion in 2021 and is expected to be worth $88.01 billion by 2030, indicating a compound annual growth rate of 4.8% during the forecast period of 2022 to 2030. The high volume of global economic activities has heightened the demand for recycling of waste materials.

The recycling sector has become an integral part of the urban infrastructure since it ensures the protection of both the human health and environment. In addition to higher urbanization and the expanding industrial sector, the growing agricultural production leads to more wastage from the agro-industries, thus driving the demand for the waste recycling services across the globe.

There are new entrants looking to resolve the lags in the waste management and recycling industry. For example, solar panels are considered green hardware, but older versions of panels are turning into hazardous waste. Thus, a California-based startup, SolarCycle, is using that waste by recycling parts of the older panels and disposing them off for profit. SolarCycle asserts that it can cheaply extract about 95% of the important materials in solar panels, like silver, silicon, copper, and aluminum. These can then be recycled or repurposed, resulting in an efficient circular solar economy.

Some of the best recycling stocks to invest in include Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG).

Our Methodology

We selected the following recycling stocks based on positive analyst coverage, strong business fundamentals, and market visibility. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. The list is arranged according to the number of hedge fund holders in each firm.

Best Recycling Stocks To Buy Now


11. Montrose Environmental Group, Inc. (NYSE:MEG)

Number of Hedge Fund Holders: 8

Montrose Environmental Group, Inc. (NYSE:MEG) was founded in 2012 and is headquartered in North Little Rock, Arkansas. It is an environmental services company in the United States, operating through three segments – Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. It provides its services to the technology, media, chemical, energy, power and utility, industrial and manufacturing, financial, and engineering industries, as well as local, state, provincial, and federal government entities.

On December 12, BofA analyst Andrew Obin upgraded Montrose Environmental Group, Inc. (NYSE:MEG) to Buy from Neutral, citing a forecast for accelerating earnings growth in 2023. Montrose Environmental Group (NYSE:MEG) stock also rose on December 12 after the company announced it had acquired Huco Consulting, a company focused on safety and ESG goals, to expand its range of environmental services.

According to Insider Monkey’s data, 8 hedge funds were bullish on Montrose Environmental Group, Inc. (NYSE:MEG) at the end of the third quarter of 2022, compared to 9 funds in the last quarter. Richard Driehaus’ Driehaus Capital is the largest stakeholder of the company, with 342,461 shares worth $11.5 million.

Like Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG), Montrose Environmental Group, Inc. (NYSE:MEG) is one of the best recycling stocks to consider buying.

Here is what Baron Funds specifically said about Montrose Environmental Group, Inc. (NYSE:MEG) in its Q2 2022 investor letter:

“Montrose Environmental Group, Inc.(NYSE:MEG), an environmental services company, underperformed during the quarter. Despite reiterating guidance for 2022, Montrose underperformed as the market penalized high-growth companies generally. We continue to remain positive on the company’s prospects and ability to achieve or beat its long-term growth target of over 20% per year. We remain particularly excited about Montrose’s potential to benefit from increased government regulation around PFAS chemical contamination and methane emissions.”


10. Quest Resource Holding Corporation (NASDAQ:QRHC)

Number of Hedge Fund Holders: 9

Quest Resource Holding Corporation (NASDAQ:QRHC) is a Texas-based company that provides solutions for the reuse, recycling, and disposal of waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, goods destruction, food waste, plastics, cardboard, metal, glass, mixed paper, construction debris, and regulated and non-regulated solid, liquid, and gas wastes. Even without gaining new clients, existing customers will likely expand operations and require more waste services, making Quest Resource Holding Corporation (NASDAQ:QRHC) one of the premier recycling stocks to invest in.

On April 18, EF Hutton analyst Chip Moore initiated coverage of Quest Resource Holding Corporation (NASDAQ:QRHC) with a Buy rating and a $13 price target. As a leading national provider of waste and recycling solutions, Quest Resource Holding Corporation (NASDAQ:QRHC) is "differentiated" by its asset-light, national footprint, and ability to handle comprehensive waste streams, the analyst told investors. He noted that the company has also developed "valuable" data warehousing capabilities, offering full waste-stream services for its clients.

According to Insider Monkey’s data, 9 hedge funds were long Quest Resource Holding Corporation (NASDAQ:QRHC) at the end of September 2022, with collective stakes worth $29.5 million, compared to 7 funds in the prior quarter worth $14.7 million. Nelson Obus’ Wynnefield Capital is the leading position holder in the company, with 2.5 million shares worth $21.7 million.

Here is what Long Cast Advisor specifically said about Quest Resource Holding Corporation (NASDAQ:QRHC) in its Q2 2022 investor letter:

“Quest Resource Holding Corporation (NASDAQ:QRHC) borrowed heavily to purchase Rome RWS, Inc., and with results from the acquired company not yet fully on the income statement, the debt ratios expanded and equity valuations declined. Management – and really the Board – is undertaking a high skill maneuver of integrating its largest acquisition to date, carrying an unprecedented level of debt all concurrent with the long planned retirement of the long tenured CFO. It’s a little more exciting than necessary but the valuation is undemanding and the opportunity set is quite large.

Since I’ve long written about what this company could look like if it leaned more deeply into utilizing technology within its two-sided marketplace, I’ll be closely following the XPO Logistics (XPO) spinoff of the truck brokerage business, expected in 4Q22. Truck and waste brokerage share some similar dynamics and as I’ve long noted, the technologist at XPO worked at Oakleaf concurrently with QRHC CEO Ray Hatch. Technology was a big enabling factor at Oakleaf and in XPO’s +10x growth. I think it would have a similar function for QRHC were management to wisely invest time and resources in its development.”


9. Li-Cycle Holdings Corp. (NYSE:LICY)

Number of Hedge Fund Holders: 15

Li-Cycle Holdings Corp. (NYSE:LICY) is headquartered in Toronto, Ontario, and the company engages in the lithium-ion battery resource recovery and lithium-ion battery recycling business in North America. On October 13, the company announced that it has initiated commercial operations at its lithium-ion battery recycling facility in Alabama. The facility, which is based in Tuscaloosa, uses patented technology to recycle and directly process full EV battery packs without any dismantling through a submerged shredding process that produces no wastewater. Li-Cycle Holdings Corp. (NYSE:LICY) is one of the premier recycling stocks to invest in.

On December 15, ??Citi analyst P.J. Juvekar maintained a Buy recommendation on Li-Cycle Holdings Corp. (NYSE:LICY) but lowered the firm's price target on the shares to $7.50 from $8. The analyst observed that while there is an inclination to go back to cyclical chemical names after having lagged in 2022, he has decided to "stay defensive" going into 2023.

According to Insider Monkey’s data, 15 hedge funds were long Li-Cycle Holdings Corp. (NYSE:LICY) at the end of September 2022, and Zilvinas Mecelis’ Covalis Capital is the leading position holder in the company, with 11.6 million shares worth $61.8 million.


8. Heritage-Crystal Clean, Inc (NASDAQ:HCCI)

Number of Hedge Fund Holders: 19

Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is an Illinois-based company that provides parts cleaning, hazardous and non-hazardous waste, and used oil collection services to small and mid-sized customers in the industrial and vehicle maintenance sectors in the United States and Canada. The company also provides containerized waste management, wastewater vacuum, antifreeze recycling, and field services. Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is one of the leading recycling stocks to invest in.

On October 19, Heritage-Crystal Clean, Inc (NASDAQ:HCCI) reported Q3 non-GAAP earnings per share of $1.01 and a revenue of $172.22 million, outperforming Wall Street estimates by $0.21 and $17.23 million, respectively. The Q3 revenue increased nearly 40% compared to the prior-year quarter.

Needham analyst James Ricchiuti on October 21 maintained a Buy rating on Heritage-Crystal Clean, Inc (NASDAQ:HCCI) but trimmed the firm's price target on the shares to $40 from $43 as he noted that the company delivered "another impressive quarterly report." Oil business margins are forecasted to shrink in Q4 as a result of downtime in Heritage-Crystal Clean, Inc (NASDAQ:HCCI)’s refinery, which may have contributed to the pullback in shares, but it is "unwarranted," the analyst wrote in a research note.

According to Insider Monkey’s data, 19 hedge funds were long Heritage-Crystal Clean, Inc (NASDAQ:HCCI) at the end of September 2022, compared to 16 funds in the last quarter. Chuck Royce’s Royce & Associates is the largest stakeholder of the company, with 1.15 million shares worth $34 million.

Meridian Funds made the following comment about Heritage-Crystal Clean, Inc (NASDAQ:HCCI) in its Q3 2022 investor letter:

“Heritage-Crystal Clean, Inc (NASDAQ:HCCI) is an environmental services company focused on machine parts cleaning, used oil collection, oil re-refining, and hazardous and non-hazardous waste services. Our rationale for investing in this company includes the recurring revenue stream it generates from its environmental services business unit and substantial growth opportunities in the re-refinery and used oil collection segments. Continued strong execution and higher oil prices contributed to the stock’s solid performance during the period. Notably, Heritage-Crystal Clean’s oil business segment generated record revenue in the second quarter and saw segment margins improve to 41%, as the spread between base oil sales and the cost of collecting used oil widened. The company’s core environmental services segment also recorded record quarterly revenue. We believe the environmental, social, and governance (ESG) story at Heritage remains under appreciated by the market as the company collects used motor oil and recycles it for reuse. We have high conviction in the long-term growth story for the company, but trimmed our position in the stock during the period as the share price appreciated.”


7. PureCycle Technologies, Inc. (NASDAQ:PCT)

Number of Hedge Fund Holders: 23

PureCycle Technologies, Inc. (NASDAQ:PCT) was founded in 2015 and is headquartered in Orlando, Florida. The company produces recycled polypropylene (PP) and holds a license for restoring waste PP into ultra-pure recycled resin. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to turn it into virgin-like resin. PureCycle Technologies, Inc. (NASDAQ:PCT) is one of the best recycling stocks to consider. At the end of September 30, the company had total liquidity of $416.1 million, including $215.0 million of cash, cash equivalents, and debt securities available for sale and $201.1 million in restricted cash.

On November 11, Cowen analyst Thomas Boyes maintained an Outperform rating on PureCycle Technologies, Inc. (NASDAQ:PCT) but lowered the price target on the shares to $11 from $15. The analyst said as expected, pellet production at Ironton shifted into January and said the facility is still forecasted to fully ramp at the end of 2023.

According to Insider Monkey’s third quarter database, 23 hedge funds were bullish on PureCycle Technologies, Inc. (NASDAQ:PCT), with collective stakes worth $407.7 million, compared to 23 funds in the prior quarter worth $400.6 million. Daniel Patrick Gibson’s Sylebra Capital Management is the leading stakeholder of the company, with more than 29 million shares worth $235.5 million.


6. Casella Waste Systems, Inc. (NASDAQ:CWST)

Number of Hedge Fund Holders: 23

Casella Waste Systems, Inc. (NASDAQ:CWST) operates as a vertically integrated solid waste services company in the United States. The company offers resource management services including solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers. The company lifted its full-year 2022 revenue guidance to between $1.065 billion and $1.080 billion from a prior range of $1.035 billion to $1.050 billion. The consensus revenue came in at $1.04 billion.

On October 24, Jefferies analyst Stephanie Moore initiated coverage of Casella Waste Systems, Inc. (NASDAQ:CWST) with a Buy rating and a price target of $95, down from $103. The company offers superior pricing power given its Northeast concentration, as well as the ability to see accelerated margins from operating leverage and efficiency investments, the analyst told investors in a research note. She added that Casella Waste Systems, Inc. (NASDAQ:CWST) is also the only public waste company its size not to be acquired, which provides "downside support to valuation on a takeout potential".

According to Insider Monkey’s data, 23 hedge funds were long Casella Waste Systems, Inc. (NASDAQ:CWST) at the end of the third quarter of 2022, compared to 17 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 686,959 shares worth $52.5 million.

In addition to Waste Connections, Inc. (NYSE:WCN), Waste Management, Inc. (NYSE:WM), and Republic Services, Inc. (NYSE:RSG), Casella Waste Systems, Inc. (NASDAQ:CWST) is one of the leading recycling stocks to monitor.


5. GFL Environmental Inc. (NYSE:GFL)

Number of Hedge Fund Holders: 28

GFL Environmental Inc. (NYSE:GFL) is a diversified environmental services company operating in Canada and the United States. The company offers non-hazardous solid waste management, infrastructure and soil remediation, and liquid waste management services. Its solid waste management business includes the collection, transportation, transfer, recycling, and disposal of non-hazardous solid waste for municipal, residential, and commercial and industrial customers.

On November 2, GFL Environmental Inc. (NYSE:GFL) reported a Q3 non-GAAP EPS of $0.20 and a revenue of $1.83 billion, topping market estimates by $0.04 and $570 million, respectively. It is one of the premier recycling stocks to invest in.

CIBC analyst Kevin Chiang on December 14 raised the firm’s price target on GFL Environmental Inc. (NYSE:GFL) to C$50 from C$46 and maintained an Outperform rating on the shares.

According to Insider Monkey’s data, 28 hedge funds were long GFL Environmental Inc. (NYSE:GFL) at the end of Q3 2022, compared to 25 funds in the last quarter. Robert Pohly’s Samlyn Capital is the largest stakeholder of the company, with 4.5 million shares worth $114.3 million.

Here is what Ave Maria specifically said about GFL Environmental Inc. (NYSE:GFL) in its Q2 2022 investor letter:

“GFL Environmental Inc. (NYSE:GFL) is a growing solid waste management company. In the first quarter of 2022, revenue increased 11.3% on an organic basis and 27.4% including acquisitions. At the company’s investor day in May, the management provided increased free-cash-flow guidance for 2022, 2023 and 2024., which looks very positive.”


4. Clean Harbors, Inc. (NYSE:CLH)

Number of Hedge Fund Holders: 30

Clean Harbors, Inc. (NYSE:CLH) is a Massachusetts-based company that provides environmental and industrial services in North America. The company operates through two segments, Environmental Services and Safety-Kleen Sustainability Solutions. The Safety-Kleen Sustainability Solutions segment offers pickup and transportation services for hazardous and non-hazardous containerized waste for recycling or disposal. Clean Harbors, Inc. (NYSE:CLH) is one of the leading recycling stocks to invest in.

Baird analyst David Manthey on November 3 raised the price target on Clean Harbors, Inc. (NYSE:CLH) to $155 from $150 and maintained an Outperform rating on the shares. The analyst sees a good setup for ongoing solid pricing and deferred waste streams, perhaps cushioning results, while PFAS/reshoring/increased blended oil sales could also augment his view.

According to Insider Monkey’s data, 30 hedge funds were long Clean Harbors, Inc. (NYSE:CLH) at the end of September 2022, with combined stakes worth $497 million, compared to 28 funds in the prior quarter worth $408 million. Ian Simm’s Impax Asset Management is the largest position holder in the company, with 1.12 million shares valued at $123 million.

Meridian Funds made the following comment about Clean Harbors, Inc. (NYSE:CLH) in its Q3 2022 investor letter:

“Clean Harbors, Inc. (NYSE:CLH) is a leading hazardous waste treatment, storage, and disposal management company in North America and one of our longer-term holdings. Particularly impressive are its hazardous waste incinerators, which are nearly impossible to replicate. We also like its oil re-refinery business which is gaining recognition as a sustainable source of motor oil. Through cost controls and price increases, the company was successful in managing the inflationary environment during the period. Utilization of its incinerator network reached 90% during its most recently reported quarter and pricing increased 18% from a year ago. High and increasing base oil prices provided an additional boost to its re-refinery business, widening the spread between the price Clean Harbors charges for its refined oil and the price it pays for used oil. A resurgence in U.S. manufacturing activity and the accretive acquisition of HydroChemPSC also contributed to investors’ enthusiasm for the stock. Although our long-term outlook for Clean Harbors remains upbeat, we trimmed our position in the stock due to the company’s high debt balance as a result of the acquisition. We also believe the economic slowdown may eventually impact Clean Harbors, which operates in a late-cycle industry and therefore tends to have a delayed response to economic developments.”


3. LKQ Corporation (NASDAQ:LKQ)

Number of Hedge Fund Holders: 32

LKQ Corporation (NASDAQ:LKQ) was incorporated in 1998 and is headquartered in Chicago, Illinois. The company deals in auto replacement parts, components, and systems used in the repair and maintenance of vehicles. LKQ Corporation (NASDAQ:LKQ) provides scrap metal and other materials to metals and automotive recyclers. The company raised its latest quarterly dividend by 10% to $0.275 per share, which was paid to shareholders on December 1. The board also authorized a $1 billion increase and one-year extension to its stock repurchase program, lifting the aggregate repurchase authorization to $3.5 billion through October 25, 2025.

On July 12, MKM Partners analyst Scott Stember initiated coverage of LKQ Corporation (NASDAQ:LKQ) with a Buy rating and a $68 price target. Prospects for LKQ Corporation (NASDAQ:LKQ)’s North American business “have never been better” and the effective scaling of the European business has yielded gains in segment sales and profits, said the analyst, who added that “LKQ has turned into a cash flow-generating machine.”

According to Insider Monkey’s data, 32 hedge funds were long LKQ Corporation (NASDAQ:LKQ) at the end of September 2022, compared to 31 funds in the earlier quarter. ValueAct Capital is the leading stakeholder of the company, with 12.5 million shares worth $592 million.

Bonsai Partners mentioned LKQ Corporation (NASDAQ: LKQ) in its first-quarter 2021 investor letter. Here’s what they said:

“LKQ is the largest provider of alternative collision and mechanical automotive parts in the United States. In Europe, they are the leading distributor of general automotive maintenance parts and supplies. Its shares appreciated 20.1% during the quarter.

During the quarter, LKQ shared its fourth-quarter results: showing a slight revenue decline and a nearly 30% increase in quarterly profit Vs. the same period last year. COVID has proved a surprising catalyst for my investment thesis which revolves around optimizing their recent large acquisitions that were never efficiently integrated.

Admittedly, in addition to LKQ’s quarterly performance, thematically, there has been broad enthusiasm for “re-opening” trades, of which, LKQ has been a beneficiary. Most importantly, the prior overhang related to LKQ’s debt burden is now all but behind us. Their net debt to EBITDA ratio now sits below 2x, a stark change from the near 3x leverage ratio before the pandemic. At that time, LKQ’s leverage had the potential to spiral upward to nearly 4-5x if the business experienced a prolonged shutdown. It’s good to be past this issue.”


2. Waste Connections, Inc. (NYSE:WCN)

Number of Hedge Fund Holders: 33

Waste Connections, Inc. (NYSE:WCN) is a provider of non-hazardous waste collection, transfer, disposal, and resource recovery services in the United States and Canada. The company offers collection, landfill disposal, and recycling services to residential, commercial, municipal, industrial, and exploration and production customers. It is one of the top recycling stocks to monitor. Waste Connections, Inc. (NYSE:WCN) raised its latest quarterly dividend by nearly 11% to $0.255 per share, which was distributed to shareholders on December 1.

On October 24, Jefferies analyst Stephanie Moore initiated coverage of Waste Connections, Inc. (NYSE:WCN) with a Buy rating and a $165 price target. The analyst said the stock is best-in-class amongst its waste peers with above-average pricing growth and margins due to its suburban market exposure, as well as the exclusivity from its franchise contracts. The analyst added that she views it has a clear line of sight into at least low double digit revenue growth in 2023.

According to Insider Monkey’s Q3 data, 33 hedge funds were long Waste Connections, Inc. (NYSE:WCN), compared to 34 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with 2.15 million shares worth $290.4 million.

Conestoga Capital Advisors made the following comment about Waste Connections, Inc. (NYSE:WCN) in its Q3 2022 investor letter:

“Waste Connections, Inc. (NYSE:WCN): WCN is a leading waste management service company that provides collection, recycling, transfer and disposal services in North America. This top ten holding performed well during the quarter given the consistency of its business model with stable volumes, strong pricing power and healthy margins.”


1. Republic Services, Inc. (NYSE:RSG)

Number of Hedge Fund Holders: 41

Republic Services, Inc. (NYSE:RSG) is an Arizona-based company that offers environmental services in the United States. The company provides collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. It is one of the best recycling stocks to invest in. On October 27, Republic Services, Inc. (NYSE:RSG) reported a Q3 non-GAAP EPS of $1.34 and a revenue of $3.59 billion, outperforming Wall Street estimates by $0.12 and $60 million, respectively.

BMO Capital analyst Devin Dodge on December 7 downgraded Republic Services, Inc. (NYSE:RSG) to Market Perform from Outperform with a price target of $148, down from $152. Republic Services, Inc. (NYSE:RSG) has meaningfully outperformed the market this year, indicating robust industry conditions, strong execution, and an investor preference for defensive stocks, the analyst told investors in a research note. While solid waste stocks normally outperform deep into a recession, the much anticipated economic pullback has meaningfully been reflected in the relative share price performance, noted the analyst. As such, he sees lower potential returns over the next 12 months. Despite the downgrade, he still believes Republic Services, Inc. (NYSE:RSG) could be attractive for individuals with a longer investment horizon.

According to Insider Monkey’s data, 41 hedge funds were long Republic Services, Inc. (NYSE:RSG) at the end of Q3 2022, compared to 33 funds in the last quarter. Richard Chilton’s Chilton Investment Company is a notable position holder in the company, with 1.38 million shares worth $188.5 million.

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Agro Sector ETFs - >>> VanEck Sees ‘Minimal’ Impact on Food Industry From Agriculture Security Bill


Yahoo Finance

by Riccardo Zerilli

February 15, 2023


https://finance.yahoo.com/news/vaneck-sees-minimal-impact-food-214500179.html


As concerns over China’s balloon heightened national security concerns in recent days, a bipartisan group of U.S. legislators wants to protect U.S. farms from foreign ownership.

"Chinese purchases—whether it be businesses, government, individuals, some kind of Chinese entity—of our agricultural land is still quite small, but it's actually growing very quickly,” Dexter Tiff Roberts, a senior fellow with the Atlantic Council's Asia Security Initiative, told Scripps News. “So, I do think we should pay attention to that."

The Promoting Agriculture Safeguards and Security (PASS) Act aims to prevent China, Iran, Russia and North Korea from investing in U.S. agriculture companies.

China specifically faces a considerable disparity between population and farmable land: Although the country makes up 20% of the global population, only 7%-9% of its land is arable. This issue has prompted Beijing to look outside of its borders to provide the necessary food supply for its people. This buying spree created a security issue.

Impact of New Legislation on Food Insecurity ETFs

While the PASS Act aims to reduce the competition faced by U.S. farmers and improve food supply control, the overall impact of the new legislation may be limited in the long term.

Shawn Reynolds, portfolio manager for the active Natural Resources Equity Strategy at VanEck, sees little impact from the PASS ACT for the U.S. food industry.

"This act seems to try to prohibit land acquisition adjacent to or near sites of significant national military or intelligence significance. The U.S. has almost a billion acres of farmland, the second most arable land in the world after India. The ability to impact food production by hostile countries acquiring agricultural land is minimal," he said.

Reynolds argued that food insecurity will likely increase in the next several years as the global population grows from 8 billion to 10 billion by 2050, urbanization increases and the middle classes expand.

The agriculture sector is also responsible for using 50% of habitable land, 70% of global freshwater and 78% of the world's ocean and freshwater pollution. Additionally, domestic livestock accounts for 94% of all mammals on the earth, excluding humans.

"Food insecurity ETFs must focus on increasing the production of food, but also on doing it more sustainably and while improving the nutritional content of diets," Reynolds added.

VanEck has two agriculture-related ETFs: The Agribusiness ETF (MOO), which has been around since August 2007, and the Future of Food ETF (YUMY), with an inception of November 2021.

MOO invests primarily in large and midcap companies in the traditional agricultural industry. YUMY invests mainly in agri-food technology and innovation companies, including those addressing food insecurity.

Global Food Crisis

With food prices reaching new highs, the number of severely food-insecure people has doubled in the past two years. There are more than 850 million undernourished people today, and with the world population set to grow 30% by 2050, this figure will continue to rise.

Moreover, the war in Ukraine has contributed to a significant disruption in the food supply. Russia and Ukraine have been responsible for almost 30% of wheat, 15% of corn, 25% of barley and more than 75% of global sunflower oil production over the last five years.

Another significant disruption caused by this conflict is the increase in fertilizer prices; Russia is the leading exporter, and many countries had to reduce crop production after facing higher costs driven by the disruption in the global supply of nitrogen and potash nutrients, which are essential fertilizers in commodity crops like corn and soybean.

ETFs to Consider

Outside of YUMY and MOO, investors can navigate this global food crisis with other great ETF opportunities. The Global X MSCI SuperDividend EAFE ETF (EFAS) tracks an index of stocks from developed countries outside North America. This ETF includes holdings in companies such as Nestle, Danone and Unilever in Europe, Australia and Asia.

It has an expense ratio of 0.55%. Even though it is relatively new to the market, it has seen a 7.8% year-to-date gain, and in the last three months alone, it registered more than a 28% gain.

The Invesco Dynamic Food & Beverage ETF (PBJ) offers exposure to 30 U.S. stocks in the food and beverage industry, such as PepsiCo, Hershey Company and Kroger Co. The portfolio also includes restaurants and food retailers; it has a weighted average market cap of $34 billion and an expense ratio of 0.63%.

The First Trust Nasdaq Food & Beverage ETF (FTXG) follows a liquidity-selected, multifactor-weighted index of U.S. food & beverage companies. It includes 30 U.S. food and beverage companies. It has an expense ratio of 0.60% and more than $920 million in assets under management.

Both ETFs offer exposure to U.S. companies and have generated average returns of 6% and higher in the last five years.

More risk-averse investors may prefer the Global X AgTech & Food Innovation ETF (KROP) since it is a passive investing fund with a relatively low expense ratio of 0.50%. It tracks companies related to advancing innovation and technologies in the agricultural and food industry space.

Lastly, the Teucrium Wheat Fund (WEAT) may be a good choice for investors who want to capitalize on sudden shocks in the market but need to be aware of the risks implied in commodity-driven ETFs. The ETF charges an expense ratio of 1.14% and has almost $200 million in AUM.

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>>> GICS Changes to Affect Select Sector SPDRs, Other ETFs


Yahoo Finance

by Heather Bell

March 10, 2023


https://finance.yahoo.com/news/gics-changes-affect-select-sector-214500074.html


As it does every few years, the Global Industry Classification Standard used by index providers such as S&P Dow Jones Indices and MSCI will be seeing some changes effective March 17.

The most significant tweaks will materially affect five of the 11 GICS sectors—industrials, consumer discretionary, consumer staples, financials and information technology. They are the most significant changes to go into effect for GICS since the establishment of the communication services sector in 2018.

Other changes will involve shifts in industry and subindustry groups within sectors that will not involve affected companies being moved to other sectors.

According to State Street Global Advisors, the GICS changes will primarily affect 14 stocks that are switching sectors in the S&P 500 index, among other securities and indexes.

The largest change is the renovation of the data processing & outsourced service subindustry as it currently exists in the information technology sector—of which it has represented roughly 14%—with its contents redistributed to subindustries in the financials and industrials sectors. The data processing & outsourced services subindustry is moving to the industrials sector.

Eight S&P 500 stocks from the data processing & outsourced services subindustry will move to the newly created transaction and payment processing services subindustry in the financials sector. The affected securities include Visa Inc., Mastercard Inc., PayPal Holdings Inc., Fiserv Inc., Fidelity National Information, Global Payments Inc., FleetCor Technologies Inc. and Jack Henry & Associates Inc. Each of the stocks will have larger weightings within their new sector.

Another three stocks will be moved to the industrials sector, with Automatic Data Processing and Paychex Inc. being moved to human resources & employment services and Broadridge Financial Solutions Inc. still falling within the data processing & outsourced services subindustry, but in industrials. Again, all of the affected stocks will see their weights increase in their new classification.

Finally, three stocks in the S&P 500 index will move from the consumer discretionary sector to the consumer staples sector, having been reclassified from the general merchandise stores subindustry to the consumable merchandise retail subindustry. Those stocks include Target Corp., Dollar General Corp. and Dollar Tree Inc.

The outcome of such changes will affect a number of ETFs, including the Select Sector SPDRs ETF family. Those include the $41 billion Technology Select Sector SPDR Fund (XLK), the $33.7 billion Financial Select Sector SPDR Fund (XLF), the $16.5 billion Consumer Staples Select Sector SPDR Fund (XLP), the $14.8 billion Industrial Select Sector SPDR Fund (XLI) and the $13.9 billion Consumer Discretionary Select Sector SPDR Fund (XLY).

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10 year performance, the tech sector wins by a mile -


http://www.lazyportfolioetf.com/sp-500-sector-returns/


Information Technology (XLK) - 17.46
Healthcare (XLV) --------------------- 14.85
S&P 500 (SPY) ----------------------- 12.46
Industrials (XLI) ----------------------- 12.11
Financials (XLF) -----------------------12.01
Consumer Discretionary (XLY) ---- 11.91
Utilities (XLU) -------------------------- 10.87
Consumer Staples (XLP) ----------- 10.76
Materials (XLB) ------------------------- 9.78
Real Estate (XLRE) -------------------- 7.42
Energy (XLE) ---------------------------- 5.95
Communication Services (XLC) ---- 4.42


However, if someone had bought into the Nasdaq near the tech bubble peak in 2000, the Nasdaq performance over that period (2000-2022) is less than for the S+P 500.


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>>> 11 Biggest Garbage Companies in the US


Insider Monkey

by Faiq Zafar

November 16, 2022


https://finance.yahoo.com/news/11-biggest-garbage-companies-us-152514519.html


In this article, we shall discuss the 11 biggest garbage companies in the United States. To skip our comprehensive analysis of the waste management sector in the United States, go directly and see 5 Biggest Garbage Companies in the US.

According to a report by McKinsey and Company, growth in the global economy has led to a drastic increase in consumption which, in turn, has led to an increase the use of resources. This has resulted in a rapid surge of waste production. Global demand for plastics is also on the rise, promulgated by the material's barrier properties, light weight, malleability and profitable production economics. Plastic consumption is expected to play a significant role in global supply chains, despite efforts to move away from single-use plastics. This rising demand of plastic has also spurred a drastic rise in plastic waste production. According to the report, since 2007, the considerable rise in solid waste production has strained waste-management systems in many countries, which has led to negative impact on the global economy, health, and ecosystems.

Waste Collection Services Industry in the U.S: An Analysis
The average American produces approximately 4.5 pounds of trash a day, leading the U.S. to produce 268 million tonnes of waste annually. Though the country is home to merely 4% of the global population, it is responsible for more than 12% of the planet's waste. According to a study conducted by Greenpeace USA, industry claims of creating an efficient, circular economy is nothing more than "fiction", as of the 51 million tons of plastic waste generated by households in the United States in 2021, only 2.4 million tonnes, less than 5%, were recycled. After peaking in 2014 at 10%, the trend of recycling in the United States has been on the decline, especially since China stopped accepting the West's plastic waste in 2018. Since the waste management industry revenue is highly dependent on waste production in any given economy, the market trends for the industry in the U.S. have picked up considerably since the pandemic in 2020, and a favorable future outlook for the industry is anticipated.

The waste collection services industry has recorded massive growth over the past five years. The market is highly segmented into industrial waste, hazardous waste, and municipal waste. Given that residential waste has remained relatively dormant during the period, accounting for 31.8% of the total market share, overall industry demand is stabilized. The market size, measured by revenue, has totaled up to $68 billion in 2022, and is expected to reach $229.3 billion by 2028, projected to grow at a CAGR of 6.7% from 2022 to 2030. Stringent government regulations towards open burning and illegal dumping, introduction of governmental regulations to curb greenhouse gas emissions like the Inflation Reduction Act, and legislative amendments by the Environmental Protection Agency to contain illegal dumping and burning of waste, are all driving augmented market growth. However, inadequate waste disposal methods, and labor intensive and high cost of transportation are anticipated to restraint the North American waste management market. Some of the most prominent players in the waste collection industry are Waste Management Inc. (NYSE:WM), Waste Connections Inc. (NYSE:WCN), and Republic Services Inc. (NYSE:RSG).

In this article, we shall discuss the 11 biggest garbage companies in the United States by total market capitalization.

Biggest Garbage Companies in the US


11. Rubicon Technologies LLC (NYSE:RBT)
Total Market Cap (As of November 7): $346.8M

Headquartered in Lexington, Kentucky, Rubicon Technologies (NYSE:RBT) is an American software company which specializes in the development and procurement of software to regulate waste and recycling. Rubicon Technologies (NYSE:RBT) has pioneered a mobile application to provide on-demand trash pickup. Founded in 2008, the company was able to generate an initial funding of $5 million in its first financing round. The amount went up to $30 million in 2015 in their second round, and $57 million in their third. As of the third quarter of 2022, Rubicon Technologies (NYSE:RBT) generated a total revenue of $185 million. The company has only 481 employees across three office locations in Colorado, Menlo Park, and Stamford.

Rubicon Technologies' (NYSE:RBT) primary objectives is to reduce inefficiencies and maximize the amount of waste which is diverted away from landfill sites. The company's application is fully operational in more than 20 countries including the United States, Canada, and Puerto Rico, with more than 3.4 million user service locations as of 2022. Rubicon Technologies (NYSE:RBT) is a cloud-based company and its software platform analyzes customers' waste stream and regulates all the data on haulers, clients, and recycling possibilities. The company expounds a range of SaaS products for waste, recycling, and smart city solutions, with the subscription model contributing to more than 50% of Rubicon's (NYSE:RBT) annual revenue. Prominent clients for the company include 7-Eleven, Wegmans, and Starbucks.

10. 374Water Inc. (NASDAQ:SCWO)
Total Market Cap (As of November 7): $418.7M

Based in Durham, North Carolina, 374Water Inc. (NASDAQ:SCWO) is an American waste management company which specializes in pollution and treatment control, waste collection and disposal, and the development of wastewater treatment systems. It is a social impact, cleantech company, which procures innovative IT solutions to inculcate a circular economy and a clean environment. Founded in 2018, the company is funded by the U.S. Department of Energy, Bill and Melinda Gates Foundation and Duke University. As of the third quarter of 2022, 374Water Inc. (NASDAQ:SCWO) posted a total revenue of $922,718.

374Water Inc. (NASDAQ:SCWO) largely focuses on developing and providing technology which addresses environmental pollution challenges. It has developed a waste stream treatment system which relies on supercritical water oxidation technology. Furthermore, the company's AirSCWO systems are widely used in the treatment and disposal of hazardous and non-hazardous waste streams. 374Water's (NASDAQ:SCWO) client base consists of channel partners, engineering companies, construction companies, waste service providers and NGOs.

9. Schnitzer Steel Industries Inc. (NASDAQ:SCHN)
Total Market Cap (As of November 7): $878.8M

Based in Portland, Oregon, Schnitzer Steel Industries (NASDAQ:SCHN) is an American manufacturer of steel and a waste management company which largely focuses on scrap metal and non-hazardous solid waste recycling. Founded in 1906 as a one-person scrap metal recycler, the company went public in 1993 via an initial public offering and got listed on the NASDAQ stock exchange and Russel 2000 index. Since then, Schnitzer Steel Industries (NASDAQ:SCHN) has undergone massive growth through multiple acquisitions, the most notable being GreenLeaf Auto Recyclers, State Line Scrap Co, and Advanced Recycling. As of the third quarter of 2022, the company posted a total revenue of $894.4 million.

Schnitzer Steel Industries (NASDAQ:SCHN) focuses on the recycling of ferrous and non-ferrous metal. The company collects, processes, and recycles salvaged vehicles, rail cars, home appliances, industrial machinery and construction and demolition scrap. It has more than 54 metals recycling facilities, an electric arc furnace steel mill, and more than 51 retail self-service auto parts stores across the United States. Schnitzer Steel Industries (NASDAQ:SCHN) produces and sells various finished steel products through its recycling operations, like wire rods, coiled rebar, and other specialty products. Furthermore, Schnitzer Steel Industries (NASDAQ:SCHN) is also an industry leader in the procurement and sale of catalytic converters to specialty processors which use it in the extraction of non-ferrous metal products like platinum, palladium and rhodium. The company has more than 3,471 employees across more than 40 U.S. states.

8. PureCycle Technologies Inc. (NASDAQ:PCT)
Total Market Cap (As of November 7): $1.25B

Headquartered in Orlando, Florida, PureCycle Technologies Inc. (NASDAQ:PCT) is an American recycling company which specializes in the collection, processing, and conversion of polypropylene plastic waste into almost-new plastic. The company develops patented recycling processes, in collaboration with Procter and Gamble, which separates color, odor, and contaminants from plastic waste feedstock to convert it into pure recycled polypropylene (PP). This state-of-the-art process completes the loop on the reuse of recycled plastics and makes recycled polypropylene more accessible at scale to consumers. PureCycle Technologies Inc. (NASDAQ:PCT) has total of 119 employees nationwide. The company went public on May 4, 2020, raising more than $76.5 million in investment.

With more than 170 billion pounds of PP produced annually, with an averaged 5% rate of growth over the last decade, there has been an increased demand for PureCycle Technologies' (NASDAQ:PCT) Ultra-Pure Recycled (UPR) resin patent. Skyrocketing consumer demand, major multinational sustainability commitments, new recycled content restrictions, and non-recycled plastic taxes have driven the demand for the company's UPR resin, with PureCycle Technologies Inc. (NASDAQ:PCT) being the only UPR resin provider in the waste management industry. The company has garnered favorable hedge fund sentiment over the years, with some of the most prominent hedge funds to have stakes in the company including the likes of Sylebra Capital Management, Harvard Management Company, and Atalan Capital.

7. U.S. Ecology Inc. (NASDAQ:ECOL)
Total Market Cap (As of November 7): $1.51B

U.S. Ecology Inc. (NASDAQ:ECOL) is an American waste management, waste treatment, and recycling company based in Boise, Idaho. Founded in 1952, the company is parented by Republic Services, which is an American waste collection and disposal company. In 2021, the company generated a total revenue of $988 million, with gross profit reaching up to $233.1 million. Some hedge funds which hold stakes in U.S. Ecology Inc. (NASDAQ:ECOL) include Springbok Capital, Centiva Capital, and ExodusPoint Capital.

U.S. Ecology Inc. (NASDAQ:ECOL) is an industry leader in hazardous waste collection, treatment and disposal, and offers a diverse portfolio of waste disposal options and waste treatment capabilities in the industry, and also offers waste transportation services to commercial and governmental organizations in the United States. The company is spread over 100 service locations and 35 disposal facilities across the United States, and has operations in the U.S, Canada, and Mexico.

6. Casella Waste Systems Inc. (NASDAQ:CWST)
Total Market Cap (As of November 7): $4.19B

Based in Rutland, Vermont, Casella Waste Systems (NASDAQ:CWST) is an American waste management company which provides resource management expertise and services to residential, commercial, municipal, and industrial customers, especially focusing on solid waste collection and disposal, transport, recycling, and organics services. In the third quarter of 2022, Casella Waste Systems (NASDAQ:CWST) generated a total revenue of $295.3 million, with total full-time employees ranging up to 2,900 nationwide. Some of the most prominent hedge funds to hold stakes in Casella Waste Systems (NASDAQ:CWST) as of Q2 2022 are Jim Simons' Renaissance Technologies, Israel Englander's Millennium Management, and Richard Driehaus' Driehaus Capital.

Casella Waste Systems (NASDAQ:CWST) provides integrated solid waste services in seven states, including Vermont, New Hampshire, New York, Pennsylvania. The company's services are managed on a geographical basis, through two eastern and western operating segments. As of November 2022, Casella Waste Systems (NASDAQ:CWST) owns and operates more than 42 solid waste collection operations, 59 transfer stations, 18 recycling facilities, 9 Subtitle D landfills, four landfill gas-to-energy facilities, and one landfill which has unrestricted permission to accept C&D materials.

5. Clean Harbors Inc. (NYSE:CLH)

Total Market Cap (As of November 7): $6.01B

Based in Norwell, Massachusetts, Clean Harbors Inc. (NYSE:CLH) is an American waste management company which specializes in the provision of environmental and industrial services, hazardous waste disposal, and solid waste disposal. In the third quarter of 2022, the company generated a total revenue of $1.36 billion against an operating expense of $243.4 million. As of November 2022, Clean Harbors Inc. (NYSE:CLH) has more than 18,000 employees throughout its facilities in the United States, Mexico, Canada, and Puerto Rico.

Clean Harbors Inc. (NYSE:CLH) operates through two primary segments: Environmental Services and Safety-Kleen Sustainability Solutions. The former concerns itself with the collection, transport, treatment, and disposal of hazardous and non-hazardous solid waste. The processes by which these services are carried out include resource recovery, physical treatment, fuel blending, incineration, and landfill disposal. The segment also provides industrial maintenance and specialty industrial services. Clean Harbors Inc. (NYSE:CLH) has expanded significantly since it was incorporated in 1980 through organic growth and approximately 35 acquisitions. Major acquisitions include Eveready Inc, Peak Energy Services, Safety-Kleen Systems, which has been their most profitable acquisition to date. As of November 2022, the company has over 430 service locations across the North American continent including 60 hazardous waste management facilities in 38 U.S. states, seven Canadian provinces, Mexico and Puerto Rico.

4. Stericycle Inc. (NASDAQ:SRCL)

Total Market Cap (As of November 7):

Based in Bannockburn, Illinois, Stericycle Inc. (NASDAQ:SRCL) is an American compliance company which specializes in the collection and disposal of regulated substances, such as medical waste sharps, hazardous waste, and solid waste. The company also provides training services and has multiple bases of operation all across the world. Stericycle’s (NASDAQ:SRCL) services range from regulated waste management services, sharping disposal containers to reduce the risk of needlesticks, drug disposal, healthcare compliance, and pharmaceutical disposal. The company acquired Shred-it in 2015, thereby adding secure information destruction services to its portfolio. In the third quarter of 2022, Stericycle Inc. (NASDAQ:SRCL) generated a total revenue of $690.3 million against an operating expense of $215.6 million.

Stericycle Inc. (NASDAQ:SRCL) has a global presence, with 14,500 employees in more than 640 locations across 21 countries. More than 25% of the company’s revenue is generated via its international operations, with the most prominent countries being the United States, Canada, Ireland, Spain, and Brazil. Stericycle Inc. (NASDAQ:SRCL) has also associated itself with many community causes including Feed My Starving Children, American Diabetes Association, National Safety Council, and even set up SteriCares Hardship Fund to provide monetary relief to impoverished families.

3. Waste Connections (NYSE:WCN)

Total Market Cap (As of November 7): $34.76B

Headquartered in The Woodlands, Texas, Waste Connections (NYSE:WCN) is a North American integrated waste services company which focuses on slid waste collection, transfer disposal, and recycling services. It is the third largest waste management company in the United States by overall market capitalization, with a total market cap of $34.7 billion as of November 7. Waste Connections (NYSE:WCN) generated a total revenue of $1.88 billion in Q3 2022. Founded in 1997 in Folsom, California, Waste Connections (NYSE:WCN) has 19,998 employees across operational facilities in the United States and Canada.

As of Q4 2021, more than 70% of the company’s revenue was from solid waste collection, 21% from solid waste disposal and transfer, 4% from recycling, and 5% from its oil industry waste operations. 16% of the company’s total revenue was from Canada while the rest was from the United States. Waste Connections’ (NYSE:WCN) primary services include waste collection and disposal services. These services are often carried out through contractual operations with municipalities to collect the waste in that respective jurisdiction for an agreed-upon rate. The services are provided directly to residential, commercial and industrial clients. Furthermore, Waste Connections (NYSE:WCN) owns and operates more than 87 solid waste landfills as of November 2022. Since the company’s incorporation in 1997, the company has achieved growth through notable acquisitions of R360 Environmental Solutions and Progressive Waste Services of Canada, among others.

2. Republic Services Inc. (NYSE:RSG)

Total Market Cap (As of November 7): $40.7B

Based in Scottsdale, Arizona, Republic Services Inc. (NYSE:RSG) is an American waste management service provider which specializes in non-hazardous solid waste collection, waste transfer, waste disposal, recycling, and energy services. Founded in 1998, Republic Services Inc. (NYSE:RSG) generated a total revenue of $3.6 billion in the third quarter of 2022. The company owns and operates more than 195 active landfills and 90 recycling centers across the United States. Republic Services Inc. (NYSE:RSG) owns the largest landfill in the U.S, at 2,200 acres. With over 35,000 employees nationwide, it is the second largest garbage company in the United States by overall market capitalization.

Republic Services’ (NYSE:RSG) operations primarily comprise the collection, transfer, and disposal of non-hazardous solid waste. The company operates in more than 43 states across the United States, and with 343 collection operations, 204 transfer stations, 7 treatment, recovery, and disposal facilities, and 11 salt water disposal wells, the company is an industry leader in waste management. Republic Services Inc. (NYSE:RSG) is subject to different federal, state and local regulations which oversee the environmental, public health, safety, zoning, and land use impact of the corporation. The U.S. Environmental Protection Agency administer these regulations. Furthermore, the company dedicates more than 45% of its earnings into the development and production of new technologies and the initiation of new programs across the United States.

1. Waste Management Inc. (NYSE:WM)

Total Market Cap (As of November 7): $64.32B

Based in Houston, Texas, Waste Management Inc. (NYSE:WM) is an American waste management, comprehensive waste, and environmental services company. It is the largest waste management company in the United States by overall market capitalization, and together with Republic Services Inc. (NYSE:RSG), handles more than half of all garbage collection in the United States. As of the third quarter of 2022, Waste Management Inc. (NYSE:WM) posted a total revenue of $5.08 billion. The company offers garbage collection services to more than 22 million residential, industrial, municipal, and commercial customers across the United States, Canada, and Puerto Rico. With a total of 48,500 employees across the North American continent, the company is an industry leader in garbage collection, transfer, and disposal.

Waste Management’s (NYSE:WM) network comprises more than 346 transfer stations, 293 active landfill disposal sites, 146 recycling plants, 111 beneficial-use landfill gas projects and six power production plants. With over 26,000 collection and transfer vehicles, the company has the most expansive trucking network in the U.S. waste management sector. It recycles more than 9 million tonnes of materials at over 146 facilities nationwide, ranging from single-stream recycling, electronic recycling, and recycling of organic waste and construction debris. Since its incorporation in 1968, Waste Management Inc. (NYSE:WM) has achieved massive growth through both, organic methods and acquisitions. The company is also a marketing behemoth, with multi-million dollar marketing agreements with CBS, the Transformers franchise, and the Walt Disney Company. In February 2022, the company rebranded to WM (NYSE:WM), and adopted a new slogan – “for tomorrow.”


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[wow_happens28]

Nice thoughts!!! TY for the link

[gfp927z]

>>> 3 Investing Megatrends You Can't Afford to Miss


Motley Fool

By Matthew DiLallo

Nov 12, 2022


https://www.fool.com/investing/2022/11/12/3-investing-megatrends-you-cant-afford-to-miss/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


KEY POINTS

Digitalization will require a massive infrastructure investment over the next five years.

Decarbonization is a multi-decade, multi-trillion-dollar investment opportunity.

Deglobalization will see governments spend billions to increase their resource and supply security.

Trillions of dollars will pour into these themes over the coming years.


There's a lot of near-term uncertainty facing the global economy. Surging inflation and rising interest rates are driving growing concerns we could be heading toward a recession. That could impact cyclical companies that rely on an expanding economy to drive growth.

However, amid the uncertainty, three prominent macroeconomic themes have emerged in recent years and will continue to drive growth in certain sectors: digitalization, decarbonization, and deglobalization. Here's why investors won't want to miss these megatrends.

Data-driven growth

Companies worldwide will invest an estimated $1 trillion in capital over the next five years to upgrade global data infrastructure. Those investments include upgrading copper wire networks to fiber optic cables, expanding global data center capacity, and building additional cell towers to support 5G networks, the Internet of Things, and artificial intelligence (AI).

Many companies focus on building the infrastructure needed to support the digitalization trend. For example, Brookfield Infrastructure (BIPC 0.18%) (BIP 0.16%) is investing in fiber networks, wireless infrastructure, and data centers.

Brookfield also recently agreed to acquire a European telecom tower company. It has 36,000 towers and a pipeline of 5,200 more that it expects to build for its primary tenant over the next five years to support its growth. That's one of several data infrastructure investments Brookfield has secured that will help power its growth in the coming years.

Meanwhile, real estate investment trusts (REITs) American Tower (AMT 0.97%), Crown Castle (CCI 0.83%), Equinix (EQIX 2.50%), and Digital Realty (DLR 3.33%) are focusing on various aspects of the digitalization megatrend to drive growth. American Tower recently expanded its global tower business to include data centers, putting it in an even better position to capitalize on the digitalization megatrend.

Crown Castle sees a decade-long investment cycle in 5G to build more towers, small cell nodes, and fiber optic networks. Data center REITs Equinix and Digital Realty have several expansion projects underway worldwide to help meet growing data center demand. Those investments position these REITs to continue growing their cash flow and dividends at healthy rates.

A powerful growth opportunity

Decarbonization is a multi-trillion-dollar trend that will last several decades. Energy companies must invest trillions of dollars in building renewable-energy-generating capacity to replace fossil fuels.

For example, leading utility NextEra Energy (NEE 1.54%) expects to deploy from $85 billion to $95 billion on new investments through 2025, primarily geared toward decarbonization. Those investments could give NextEra Energy the power to grow earnings and dividends at double-digit annual rates for the next several years.

Brookfield Renewable (BEPC 1.96%) (BEP 1.61%) is also investing heavily to capitalize on the decarbonization megatrend. The company has over 100 gigawatts of renewable power projects in its pipeline, more than four times its current operating capacity. It also has carbon capture and storage investments to help decarbonize other sectors of the economy. These investments could power upwards of 20% annual earnings-per-share growth for the company over the next several years.

Security is driving new investments

The pandemic exposed weaknesses in the global supply chain. That's leading governments to shift their focus to securing supplies of energy and other materials crucial to their economies.

The drive toward energy independence is fueling a boom in liquefied natural gas (LNG). European countries are locking up LNG supplies to reduce their dependence on Russian gas. That's enabled several LNG developers to move forward with new liquefaction and export facilities this year, including Cheniere Energy (LNG -0.12%). It started building its Corpus Christi Stage 3 project consisting of seven LNG liquefaction trains. The company is also evaluating an additional expansion to build two more trains at that facility.

Meanwhile, several companies are building new manufacturing facilities in the U.S. as the country restores supply. For example, semiconductor giant Intel (INTC 1.76%) is investing billions of dollars into building several new chip manufacturing facilities in Arizona and Ohio.

One catalyst driving Intel's investments is the CHIPS Act, which provides incentives to help boost domestic chip manufacturing capacity and reduce the country's reliance on overseas markets. Intel will be a major beneficiary of this recently passed legislation as it should help finance its manufacturing build-out in the country. That will better position it to capitalize on the rapidly growing semiconductor market that could double by the end of the decade, reaching $1 trillion in global sales.

Focus on the long-term picture

There's a lot of uncertainty in the global economy these days. However, it's clear that governments and companies will pour trillions of dollars into digitalization, decarbonization, and deglobalization in the coming years. Because of that, companies focused on those megatrends should thrive. That makes them potentially lucrative opportunities that investors won't want to miss.

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>>> Grain ETFs Tick Up as Exports Resume in Ukraine


ETF.com

by Sumit Roy

August 10, 2022


https://finance.yahoo.com/news/grain-etfs-tick-exports-resume-180000260.html


Global food prices may see some much-needed relief following a bilateral agreement to resume grain shipments in Ukraine, which could have a major impact on agriculture exchange-traded funds.

The largest grain-focused ETFs have been on a wild ride this year amid a conflict between two of the biggest exporters in the world, Ukraine and Russia. Twelve ships carrying grain departed Black Sea ports this week, according to Reuters.

The rise in exports is a result of a deal that Ukraine and Russia struck last month. The price of wheat, corn and soybeans fell to multimonth lows immediately after the announcement, though they’ve since clawed back some of their losses.

The Russia-Ukraine deal, a rare show of cooperation between the two warring countries, is scheduled to last 120 days and can be renewed. It was brokered by the United Nations and Turkey, a member of the North Atlantic Treaty Organization, which is highly dependent on imported grain from Ukraine and Russia.

With the deal in place, Ukraine can potentially expand grain exports from 2 million tons per month to 5 million tons per month—which was the amount it exported prior to the invasion. Ukraine also has about 20 million tons of grain sitting in storage facilities.

The agreement also has provisions that allow Russia to export some grains and fertilizers that were held up by U.S. sanctions. The combination of all those additional supplies should help at least slow down food inflation, which was running at more than a 10% rate in the U.S. in June.

Wild Year for Grain ETFs

Prior to the invasion, Ukraine was the fourth largest exporter of corn and the fifth largest exporter of wheat, while Russia was the world’s largest wheat exporter, according to the USDA.

At its highs in May, the $314 million Teucrium Wheat Fund (WEAT) was up as much as 74% on a year-to-date basis; those gains have since been cut to 11%.

The $193 million Teucrium Corn Fund (CORN), the $65 million Teucrium Soybean Fund (SOYB) and the $1.5 billion DBA Agriculture Fund (DBA)—a broader ETF that tracks 10 different agricultural commodities—also saw their gains cut, as can be seen from the chart below:

Still, each of the funds is still up solidly on the year, and they could conceivably rebound if the Russia-Ukraine deal falls apart or if other factors hinder Ukraine’s exports. Since these exports are taking place in a war zone, commercial shipping vessels may be reluctant to operate in disputed waters. Finding crews willing to staff the ships is also difficult.

"Until national navies assist the Ukrainian authorities to sweep these mines and create a safe corridor, seafarers will face significant personal risk sailing through these stretches of water," Stephen Cotton, general secretary of the International Transport Workers' Federation, told Reuters.

In addition to the grain-futures-focused ETFs mentioned above, investors can also consider funds that hold agriculture-related equities, such as the $1.6 billion VanEck Agribusiness ETF (MOO).

This fund holds stocks of companies involved in “agri-chemicals, animal health and fertilizers, seeds and traits, from farm/irrigation equipment and farm machinery, aquaculture and fishing, livestock, cultivation and plantations (including grain, oil palms, sugar cane, tobacco leafs, grapevines, etc.), and trading of agricultural products,” according to the company.

MOO’s top holdings currently are Zoetis Inc., Deere & Co, Nutrien, Bayer AG, Corteva Inc. and Archer-Daniels-Midland Co. The fund has lost 5% year to date, though that’s significantly better than the 13% loss for the broader S&P 500.

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Water sector - >>> Worsening Shortages Put Spotlight on Water ETFs


ETF.com

Heather Bell

August 9, 2022


https://finance.yahoo.com/news/worsening-shortages-put-spotlight-water-140000921.html


As shortages are becoming more common across the United States, water is an increasingly precious resource.

With quick fixes to a massive problem unlikely to emerge soon, some climate-conscious investors are turning to companies that are working on long-term solutions.

There are currently six ETFs covering the water space, but only four of them have more than $100 million in assets under management.

One fund in particular stands out in terms of AUM and performance, while each fund offers its own take on the space that could appeal to investors with strong convictions about clean water and how we should rethink our water usage.

PHO vs FIW

The Invesco Water Resources ETF (PHO), which is the largest and also the oldest fund in this space, has $1.72 billion in assets. It launched in late 2005 and is also one of the best-performing funds in the group. PHO targets U.S. companies that are involved in the conservation and purification of water.

The water ETF closest in size to PHO is the First Trust Water ETF (FIW), with $1.25 billion in assets. The fund similarly tracks an index with 36 holdings, though it uses an equal-weighting approach rather than market capitalization. Its objective is somewhat broader in scope, moving beyond just water conservation and purification to include companies that operate in the wastewater space. The two ETFs have an overlap of 28 companies, or 78% of their portfolios.

While PHO has generally been one of the top-performing funds in the group, FIW is usually not far behind. Looking at time periods ending August 3, FIW leads the water ETFs when it comes to one month, year to date, 12 months, three-year and 10-year periods.

PHO is the top performer for the three-month and five-year periods. FIW’s broader scope and equal-weighting methodology have contributed to its slight outperformance relative to PHO.

Consider also that PHO charges 0.60% in expense ratio, while FIW comes with an expense ratio of 0.53%. In terms of liquidity, both funds trade in the millions of dollars every day, with a spread of just 0.10% for FIW and 0.09% for PHO.

Most of the water ETFs move in sync with each other, though the global funds saw steeper declines during the year-to-date and 12-month periods.

Global Scope for Global Problems

U.S. exposure dominates the four global ETFs, with the country’s weight in the funds ranging from 58% to 66%, but the issue is bigger than just the US infrastructure and its vulnerability to climate change. Since the water crisis is global in nature, despite the outperformance of the U.S.- focused funds, investors also may want to consider global ETFs.

While the international exposure offered by these funds doesn’t look to have been additive for performance, that’s not to say it won’t be in the future.

According to a Bloomberg article, the most at-risk countries for a water crisis are located primarily in the Middle East, Africa and Asia. There’s an argument to be made for investors targeting global exposure for a global concern.

At first glance, the Global X Clean Water ETF (AQWA) would be the best choice, as it is one of the cheapest funds in the category and has exhibited the best performance. However, it’s the smallest and least liquid fund in the group, with less than $10 million in assets, and it only has a little more than a year of trading under its belt. PHO’s global counterpart might be a good alternative.

Not only does the Invesco S&P Global Water Index ETF (CGW) have nearly $1 billion in assets under management as well as the accompanying liquidity, but its performance is also fairly close to AQWA’s. Just note that it has roughly half of its portfolio of in common with PHO, and almost as many securities in common with FIW.

That said, CGW does not have related ESG criteria and it takes a broader approach, combining exposure to water utilities along with infrastructure, equipment and materials.

Investors should consider their approach and asset allocation to the water industry based on which funds provide the features they’re looking for. PHO is the dominant fund in the category, but FIW has seen more inflows in the past 12 months, pulling in $238 million while PHO took in about $73 million. FIW also has a slight edge in terms of performance.

CGW, another Invesco-issued fund, takes a broader view than either PHO or FIW in that it covers more categories related to the water industry and has a more global approach.

Although global exposure has not translated into outperformance relative to U.S. water stocks to date, that could change.

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>>> ETFs For A Global Food Catastrophe


ETF.com

by Heather Bell

May 23, 2022


https://finance.yahoo.com/news/etfs-global-food-catastrophe-191500987.html


A global food crisis may be coming, but some ETFs can help successfully navigate the potential fallout.

Russia’s invasion of Ukraine has rattled the world in more ways than one with troubling issues of violence and human rights abuses.

But from a global perspective, Russia and Ukraine are also key sources of agricultural products, and the disruption is having major consequences in terms of food supply and inflation.

Consider that, together, Ukraine and Russia account for 12% of traded calories, including 28% of wheat, 29% of barley, 15% of corn and 75% of sunflower oil, according to an article in The Economist. The disruption to the global food supply is also likely driving inflation.

The Economist article also notes that increased food costs have driven food insecurity up, from affecting 440 million people to affecting 1.6 billion, and it says 250 million are literally on the brink of famine. That suggests food inflation isn’t going anywhere. Hedging away at least part of the threat that food inflation represents to an investor’s personal wealth could be a matter of finding the right ETF.

Equity ETFs To Consider

The simplest way is to find a long-only equity strategy, and there are a few choices in this area, the largest being the $2 billion VanEck Agribusiness ETF (MOO). There’s also the $297 million iShares MSCI Global Agriculture Producers ETF (VEGI) and the $293 million Invesco Dynamic Food & Beverage ETF (PBJ).

MOO comes with an expense ratio of 0.56%, while VEGI charges 0.39%. PBJ is the most expensive, at 0.63%. MOO’s daily average dollar volume at $39.5 million is roughly five times that of VEGI’s. The former is older and more established, having launched in mid-2007, while VEGI rolled out in early 2012. PBJ is the oldest fund, having launched in mid-2005; its average daily dollar volume is $9.28 million.

But MOO has just 56 holdings versus VEGI’s 143. Both have weightings to the U.S. that are close to 60% (58.75% for VEGI and 60.39% for MOO). Canada and Norway claim the Nos. 2 and 3 spots, respectively, for VEGI at 9.39% and 5.42%. Meanwhile, MOO weights Germany at 9.61% and Canada at 6.43%. Whereas Norway has a 5.31% weighting in MOO and is its fourth-largest country, VEGI doesn’t even include Germany in its top 10 countries. PBJ is an exclusively U.S. fund, with just 31 holdings.

Digging into the underlying sectors for these funds shows that process industries is the largest sector, based on the Thomson Reuters classification system, for both MOO and VEGI, with the former weighting the sector at 47% and the latter weighting it at 61%. Process Industries has a weight of 11% in PBJ and is its third-largest sector.

MOO and VEGI have 33 holdings in common but have only five to six in common with PBJ. Among the top 10 holdings of both MOO and VEGI are Deere & Co., Nutrien Ltd., Archer-Daniels-Midland Co., Corteva Inc. and Mosaic Co. Of those, PBJ only includes Archer-Daniels-Midland in its top 10 holdings.

If you look at the factor exposures of the three equity funds, there’s a certain amount of similarity among the leading factors. The top three factor exposures for MOO are momentum at 0.69, low size at 0.22 and low volatility at 0.14. For VEGI, the top three exposures are momentum at 0.88, low size at 0.33 and value at 0.13. PBJ’s top three factor exposures are low size at 0.94, low volatility at 0.89 and momentum at 0.57.

Ultimately, MOO and VEGI represent the production end of the food chain, while PBJ’s holdings more strongly resemble a list of products you’d find in a U.S grocery store.

The global nature of the potential food crisis seems to call for a globally oriented investment product, but PBJ’s domestic focus may also be a way to more directly hedge the impact of inflation on a U.S. investor’s personal consumption. Food inflation in the U.S. was at 9.4%, while the overall CPI was at 8.3%. Both numbers are highs not seen since the early 1980s.

A Commodity ETF Possibility

If you want to get to the roots of what’s going on with rising food prices though, the commodity market may be the way to go. However, commodity futures tend to be volatile, with roll costs and additional tax implications.

The commodity market in general has been on fire, as Russia in particular is a source of many nonagricultural commodities. With the country now excluded from a wide range of markets at the global level, commodities have gotten a major boost. But the biggest bump could ultimately come from agriculture.

The $2.4 billion Invesco DB Agriculture Fund (DBA) comes with an expense ratio of 0.93%, making it significantly more expensive than the equity funds mentioned in this article. Its average daily dollar volume is also significantly higher than that of MOO, at more than $64 million.

There are a number of futures-based agricultural commodity products available, but with 10 separate futures contracts covered, DBA takes the most comprehensive view of the space. Its list of futures contracts includes corn, soybeans, wheat, Kansas City wheat, sugar, cocoa, coffee, cotton, live cattle, feeder cattle and lean hogs.


Performance

Among these four funds, the performance has been somewhat scattered; however, all four have seen significant year-to-date inflows.

DBA has pulled in $1.2 billion in less than five months, while MOO has pulled in $791.8 million and VEGI gained $218.8 million. PBJ took in $195.2 million.

And it’s really DBA that has had the best performance, with a gain of 13.26% year to date and a gain of 22.35% over the past 12 months. VEGI was trailing behind, with a YTD return of 8.77% and a 12-month return of 9.88% during two periods when the broader global equity market was sharply down.

PBJ’s focus on solely the U.S. and MOO’s smaller component list may have put dampers on performance, while VEGI has benefited from its broader range of holdings that still overlaps quite a bit with MOO’s component list (holdings in common with MOO represent almost a quarter of VEGI’s portfolio). PBJ is down nearly 2% year to date and is up less than 5% over the one-year period, while MOO has returned 0.92% and 5.27% for those periods, respectively.

Final Thoughts

VEGI seems like a strong choice for an investor who wants to alleviate the impact of the potential coming global food scarcity issues on their own portfolio or lifestyle.

While DBA is a clear winner in terms of recent performance and focuses on the raw materials of food products, it is still a commodity futures fund, with all the issues that come with that type of product. MOO is certainly the stalwart in the space, but its recent performance, narrower portfolio and higher expense ratio make it a close second to VEGI.

PBJ would be great if you wanted specific exposure to U.S. food and beverage consumption, but given this is a global trend, it seems like it is best captured by a product that focuses on the early stages of the food supply chain at the global level.

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>>> Investors turn to defensive stocks as economic concerns grow


Reuters

Fri, April 15, 2022

By Lewis Krauskopf


https://finance.yahoo.com/news/investors-turn-defensive-stocks-economic-100519203.html


NEW YORK (Reuters) - U.S. stock investors worried geopolitical uncertainty and the Federal Reserve's fight against inflation could dent economic growth are heading for defensive sectors they believe can better weather turbulent times and tend to offer strong dividends.

The healthcare, utilities, consumer staples and real estate sectors have posted gains so far in April even as the broader market has fallen, continuing a trend that has seen them outperform the S&P 500 this year.

Their appeal has been particularly strong in recent months, as investors worry the Fed will choke the U.S. economy as it aggressively tightens policy to combat surging consumer prices. Though growth is strong now, several big Wall Street banks have raised concerns the Fed’s aggressive measures could bring about a recession as they work their way through the economy.

The U.S. Treasury market sent an alarming signal last month, when short-term yields on some maturities of government bonds rose above longer term ones. The phenomenon, known as an inverted yield curve, has preceded past recessions. Meanwhile, fallout from the war in Ukraine remains a concern for investors.

"The reason (defensive stocks) are outperforming is people see all these headwinds to growth," said Walter Todd, chief investment officer at Greenwood Capital.

While the S&P 500 has fallen nearly 8% in 2022, utilities have gained over 6%, staples has climbed 2.5%, healthcare has dipped 1.7% and real estate has declined 6%.

With earnings season kicking into high gear next week, defensive sector companies reporting include healthcare giant Johnson & Johnson and staples stalwart Procter & Gamble. Investors will also watch earnings from streaming giant Netflix and electric-car maker Tesla.

Signs that U.S. corporate earnings are set to be stronger than expected this year could bolster the case for other market sectors including banks, travel firms or other companies that benefit from a growing economy, or high-growth and technology names that led stocks higher for most of the last decade.

Defensive stocks have proven their worth in the past. DataTrek Research found that the healthcare, utilities and staples sectors outperformed the S&P 500 by as much as 15 to 20 percentage points during periods of economic uncertainty over the past 20 years.

Lauren Goodwin, economist and portfolio strategist at New York Life Investments, said the firm's multi-asset team has in recent weeks shifted its portfolios toward staples, healthcare and utilities shares and pared back exposure to financials and industrials.

Expectations of a more hawkish Fed have “increased the risk that this economic cycle is shorter and accelerated our allocation shift toward these defensive equity sectors," Goodwin said.

The Fed – which raised rates by 25 basis points last month – has signaled it is ready to employ meatier rate hikes and speedily unwind its nearly $9 trillion balance sheet to bring down inflation. Investors have also been unnerved by geopolitical uncertainty stemming from the war in Ukraine, which has squeezed commodity prices higher and helped boost inflation.

With prices surging, defensive stocks also may be "inflationary hedges to some extent," said Mona Mahajan, senior investment strategist at Edward Jones.

"When you think about where there is a bit more pricing power, consumers will have to purchase their staples, their healthcare, probably pay their utility bills, regardless of the price increases," Mahajan said.

Not all investors are pessimistic about the economic outlook, and many believe momentum could quickly shift to other area of the market if it appears the economy will remain strong.

Art Hogan, chief market strategist at National Securities, puts the chance of a recession this year at 35%, “but it’s not our base case.”

“As concerns over an impending recession recede, I think the sponsorship of the defensives will recede with that,” Hogan said.

The surge in defensive shares has driven up their valuations. The utilities sector is trading at 21.9 times forward earnings estimates, its highest level on record and well above its five-year average price-to-earnings ratio of 18.3 times, according to Refinitiv Datastream. The staples sector is trading at about an 11% premium to its five-year average forward P/E, while healthcare is at a 5% premium.

“It would not surprise me at all to see some mean reversion on this trade for a period of time," Todd said. "But as long as these concerns around growth persist, then you could continue to see those areas relatively outperform.”

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>>> ETFs & Innovation Go Hand In Hand


ETF.com

by Jessica Ferringer

November 3, 2021


https://finance.yahoo.com/news/etfs-innovation-hand-hand-181500945.html


With the launch of two bitcoin futures ETFs occurring in October, an event that was eight years in the making, its conclusion can lead one to ask “what’s next?” for the ETF industry. After all, it’s not often an entirely new asset class is created.

With so many launches seeming like tweaks on existing ideas, it can be tempting to feel everything worth doing has already been done. Many issuers have resorted to competing on price, a topic about which much ink has been spilled both on ETF.com and elsewhere—see here and here.

But with 2,717 existing U.S.-listed ETFs currently searchable within our Screener & Database, is it even possible to come up with something new and unique anymore?

That’s the funny thing about innovation.

Though the attribution of the saying is dubious at best, Henry Ford is often quoted as saying, “If I had asked the public what they wanted, they would have said a faster horse.”

In other words, it’s difficult for us to imagine what doesn’t exist yet. For innovation to happen, it takes the ability to think outside the box and envision something truly radical.

And this is what’s great about ETFs—the space is filled with radical thinkers.

Big Year For ETF Innovation

With the number of ETF launches this year already outpacing last year’s high watermark of 318, several funds stand out to me as embodying this idea of innovation.

We already have not one, but two ETFs that offer plays on the metaverse. The Roundhill Ball Metaverse ETF (META) launched on June 30, months before Google searches for “metaverse” would peak after Facebook’s name change to Meta.

The search term shot past both “ETFs” and “inflation” in popularity after Facebook signaled a focus on the metaverse. The Fount Metaverse ETF (MTVR) launched on the same day that the Facebook Connect conference was held, where the name change was announced.

Psychedelic ETFs Debut

This year also saw the launch of the first U.S.-listed psychedelics ETF. The Defiance Next Gen Altered Experience ETF (PSY) debuted in late May. A few months later, the AdvisorShares Psychedelics ETF (PSIL) was launched, bringing a global play to the space.

While public perception of psychedelic drugs often calls to mind the counterculture era of the ’60s, these drugs are a growing area of research, showing therapeutic promise for afflictions such as depression, PTSD or even with assisting someone in coming to terms with a terminal diagnosis.

While mainstream acceptance for these treatments is likely still off in the distance, it was less than four years ago that cannabis ETFs hit the U.S. market, with the conversion of the Tierra XP Latin American Real Estate ETF to the ETFMG Alternative Harvest ETF (MJ).

There are now 10 cannabis ETFs and nearly half of the country lives in a state where marijuana is legal for recreational use. Several other states allow medical usage, though the substance remains illegal at the federal level. It is entirely possible that psychedelic drugs could see the same growing acceptance over the next few years.

GameStop Shifts Investor Appetite

Several launches this year were inspired by an event that was largely unthinkable before it happened. GameStop’s surge was painted as a David and Goliath story of small retail traders getting their revenge on hedge funds.

Since then, ETFs that focus on retail investor sentiment have proliferated. The VanEck Social Sentiment ETF (BUZZ), launched in March, two months after GameStop surged from $17 to a high of nearly $350. Though the stock has since fallen from record highs, it’s still up 962% for the year.

BUZZ gathered $280 million in inflows on its first day of trading, and crossed the half billion mark in two weeks. While BUZZ wasn’t the first take on building an investment thesis around retail trader sentiment on social media—an earlier ETF that closed also tracked the same index a few years before BUZZ’s launch—January’s events gave the idea credibility in a way that didn’t exist before.

In late August, Roundhill filed for the Roundhill MEME ETF (MEME), which is arguably the most inspired take on the GameStop saga. The fund is the first to seek to identify companies with a combination of elevated social media activity and high short interest—exactly the factors that took GameStop to the moon. This filing seems obvious now, but wouldn’t have made as much sense to the average investor even a year ago.

I'm reminded of a quote I heard on an episode of ETF Working Lunch. Jillian DelSignore, head of ETFs & indexing for FLX Distribution, said something that summarizes exactly what I feel: “The ETF industry is that corner of asset management where innovation goes to thrive.”

So while there’s no easy answer to the question of what’s next, the versatility and tradability of the ETF wrapper gives me confidence that, no matter what happens, there’ll be an ETF for it.

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>>> Metaverse presents ‘half a trillion’-dollar opportunity: ProShares strategist


Yahoo Finance

Thomas Hum

March 23, 2022


https://finance.yahoo.com/news/metaverse-presents-half-a-trillion-dollar-opportunity-pro-shares-strategist-185227405.html


Investment in the metaverse and metaverse technology has grown significantly over the past year, with tech giants like Meta (FB) and Microsoft (MSFT) leading the charge. According to ProShares Advisors Global Investment Strategist Simeon Hyman, metaverse presents an investment opportunity for individuals and institutions alike.

“Today you have an immersive but not quite interconnected metaverse,” Hyman told Yahoo Finance Live. “There's already a half [a trillion] dollars being made in the metaverse. That's likely to double even in the context of just the near term [with] social media, interactive gaming, and live music, before we even get to the interconnected piece on the other side.”

Hyman joined Yahoo Finance Live to discuss the outlook for stocks as the Fed raises interest rates and investing in the metaverse. ProShares recently launched its metaverse ETF (VERS) designed to give investment access to companies shaping the digital frontier.

The VERS (pronounced “verse”) ETF tracks Solactive’s Metaverse Theme Index, which includes 40 companies across a broad range of industries — from data processors and software to social media and gaming — and utilizes algorithms to determine metaverse investment opportunity as it evolves. A few of the companies tracked include Apple (AAPL), NVIDIA (NVDA), Roblox (RBLX), Microsoft, Meta, Snap Inc. (SNAP), and Unity (U).

“It's really interesting, when you look at the basket of companies,” Hyman said. “It's almost like a timeline of innovation over the years, because companies like Microsoft are there, but so is NVIDIA, and of course Meta, but more recent companies like Roblox and even more recently than that, a company like Unity. So this is an evolving opportunity.”

ProShares joins the likes of Roundhill Investments and their Roundhill Ball Metaverse ETF (METV) in allowing investors to participate in the financial performance of companies making the push into metaverse.

Metaverse and rising interest rates

And with the Federal Reserve raising near-term interest rates by 25 basis points, with plans to pump the brakes further if surging inflation is not quelled, uncertainty remains in regard to metaverse investment as investors begin to favor value over growth stocks.

However, Hyman believes that it is important for portfolios to maintain some level of exposure in the burgeoning tech sector to serve as a “bulwark against inflation and rising rates.” In this sense, he said that funds like ProShares’ metaverse ETF are forward-looking, although the companies included are already currently generating revenue within metaverse.

“And, you know, what we've found over the last decade or so, is that some of these transformational thematic ideas can be very, very important parts of that growth piece of your equity portfolio,” he said.

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>>> The pet industry is still booming


Yahoo Finance

Brian Sozzi

March 23, 2022


https://finance.yahoo.com/news/the-pet-industry-is-still-booming-191614335.html


Concerns about soaring gas prices walloping consumer wallets and leading to a recession may be overblown, especially if you look through the prism of the pet products market.

By all accounts, the industry — which has seen a major lift as households adopted pets during the pandemic — continues to see strong demand. Pet food sales for the trailing four-weeks ended Feb. 26 (the latest available) surged 12.7%, according to the latest data from Nielsen. Dog and cat food sales rose 12.3% and 15.8%, respectively.

Sales of pet supplies rose a solid 6.9%, led by cat litter and pet toys.

"I'm no economist. It's my job to be prepared if there is a recession. We start from the history. And the history is that the pet industry has been one of the most resilient of any industry," Petco CEO Ron Coughlin said on a new episode of Yahoo Finance Presents.

Here are a few other signs the pet spending boom that began during the COVID-19 is very much alive and well.

Petco crushes its quarter

The pet products retailer reported earlier in March that fourth quarter sales rose 13% from a year ago. Adjusted operating profits increased 16%. The company notched its seventh straight quarter of double-digit percentage sales growth.

Coughlin says consumers aren't balking at higher merchandise prices in part driven by inflationary pressures on manufacturers.

"If you go back to the Great Recession, there was almost no impact to the pet industry. People really don't change their practices in the industry. That said, it's our job to make sure that we have offers for customers in a recessionary environment. That's why things like Vital Care can help. We have mega bags and other solutions for them. But the pet industry has been relatively resilient to any macros," added Coughlin.

Blue Buffalo for Sparky?

One of the strongest businesses for cereal giant General Mills in its most recent quarter wasn't Honey Nut Cheerios, it was its Blue Buffalo pet food business.

The company said Wednesday sales in its pet food business skyrocketed 30% from a year ago. Adjusted operating profits for the division was 8% year-over-year.

"We anticipate the category [pet food] will continue to perform well, and we think that our segment will continue to perform quite well. And even through the last recession, which was a long time ago, one of the things before we even bought Blue Buffalo, we looked at how the category performed during a recession, and it turns out it performs very well. The last thing you want to do in tough times is sub-optimize what you're going to give your pet. And I would tell you that on top of that, the predominant trend in pet food now, and I think will be going forward, is the humanization of pet food. And we're clearly very well positioned in that area given that we're the number one natural pet food in the pet category by a long, long way," General Mills CEO Jeff Harmening said on an earnings call.

General Mills purchased Blue Buffalo for $8 billion in 2018.

Fresh food for Fido

Fresh pet food maker Freshpet is coming off a strong quarter of its own.

Sales in the most recent quarter rose 37.1%, accelerating from the 33.5% pace seen in all of 2021.

Demand has been so strong for fresh pet food, Freshpet continues to have difficulty keeping shelves stocked.

"And the biggest challenge we've had is we've had periods where we are completely out of stock on cat food. We're completely out of stock on bags or completely out of stock on rolls," explained Freshpet COO Scott Morris on an earnings call. "Now what I can tell you is when those products come back in stock, the growth rate is extraordinary and it's explosive. So when we finally get all of our products in, I think we're going to have a really, really significant explosion in our penetration."

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EVRNF(China Realestate) Desperate Evergrande Bondholders Threaten Lawsuit After Lenders Seize $2 Billion

https://finance.yahoo.com/quote/EGRNF/?p=EGRNF

https://www.zerohedge.com/markets/desperate-evergrande-bondholders-threaten-lawsuit-after-lenders-seize-2-billion

Following yesterday's revelation that an unspecified lender had seized more than $2 billion in cash deposits belonging to one of China Evergrand Group's subsidiaries, investors who own the firm's badly battered foreign-currency denominated bonds are reportedly examining legal avenues to recouping their capital, according to the FT.

A group of distressed debt investors in the US and UK (including Saba Capital, Redwood Capital Management and Ashmore) met on Tuesday and asked their lawyers to start work on a legal analysis of the situation in order to decide on a strategy. Evergrande and its subsidiaries trade in Hong Kong.

One of the FT's sources said the funds had been conspiring to try and find a legal avenue to force Evergrande to make good on its bonds in default before the company disclosed the seizure of $2 billion by unspecified lenders: the bonds represent $20 billion of foreign-currency debt, and are presently trading at a fraction of their face value. Evergrande has said it's hoping to offer up a debt-restructuring plane by July.

News of the $2 billion seizure infuriated bond holders, who will ultimately be saddled with losses if Evergrande ultimately fails to repay. Bondholders believe that the debt covenants entitles them to priority repayment over whatever lender seized the money.

One person directly involved in the situation said investors feel they have "no choice" but to commence legal action and that plans were already prepared. "I think it has massively changed the game, "the person said about the $2bn claim. "The atmosphere in the room is one of boiling blood."

All told, the Chinese developer owes more than $300 billion, and the firms push toward restructuring represents the biggest debt-restructuring in Chinese history.

Bondholders are also reportedly embracing the argument that the money seized by the firm's lenders would have been put to better use to pay off the bond obligations.

But while bondholders could be let holding the bag for billions, the incident represents a windfall for law firm Kirkland & Ellis and investment bank Moelis & Company.

The process has already been fraught with difficulty: Evergrande’s default, which began with missed payments in September but wasn't officially confirmed by one of the major US ratings agencies until December, has been characterized by a lack of disclosure and international investors have often been left in the dark

Another reason for the company's troubles: the CCP has prioritized the completion of Evergrande's apartment complexes over improving the company's financial position.

Evergrande held a call with investors last night, but few details about its plans were reportedly disclosed. One person who participated described it as "if a politician were addressing 15,000 people."

Investors and economists are closely watching the situation since China's heavily indebted property sector has led to speculation by some that the firm's default and eventual collapse could trigger China's "Lehman moment".

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>>> These are tech’s 10 megatrends for 2022 — and the stocks to buy


MarketWatch

Jan. 3, 2022

By Daniel Newman


https://www.marketwatch.com/story/these-are-techs-10-megatrends-for-2022-and-the-stocks-to-buy-11640790443?siteid=yhoof2


From cloud computing to autonomous vehicles to 5G, here’s what to watch


It’s been a turbulent year for stock markets – record levels across all major indexes despite an onslaught of economic worries and what feels like never-ending variants of Covid-19. Now it’s time to look ahead to 10 major technology trends and which companies show the most promise to win big in 2022.


Cloud computing

Top pick: Amazon

Amazon AMZN, +2.21% has enjoyed the leadership position in Cloud for some time, and its AWS business now tops $16 billion in revenue a quarter. However, there have been two notable AWS outages in recent months. More broadly, Amazon’s stock price has badly lagged the S&P 500 SPX, +0.64% in 2021 with a gain of only 4.8% through Dec. 28. Yet given that enterprise cloud investment is not expected to slow in 2022 and that AWS is Amazon’s cash-cow business, I expect the new year to be better for Amazon shareholders.

Keep an eye out for: Oracle

Oracle ORCL, +0.79% enjoyed a substantial growth year, capped off by a $28 billion deal to acquire Cerner, which sells software that helps doctors access and analyze medical records. In 2021, Oracle provided a peek into its Cloud growth, a business now exceeding $10 billion annually. Combined with its strong stock performance — up 37% through Dec. 28 — and stability in volatile markets, Oracle looks primed for more growth in 2022.


Metaverse

Top pick: Roblox

Meta Platforms FB, +0.65% (once known as Facebook) may be receiving much credit for the popularization of the Metaverse. However, Roblox RBLX, -4.22% has spent 17 years creating immersive experiences that could be considered the Metaverse. It claims that half of U.S. children are on the platform and that a developer community of 10 million has created more than 24 million experiences on the Roblox platform.

While Meta and others look to AR and VR to create the Metaverse experience. Roblox has taken a more real-world approach to its gaming platform that has made it a real leader in the space. This practical approach coupled with continued platform adoption should lead to continued gains as the popularization of the technology leads to more investors looking to get into the space.

Keep an eye out for: NVIDIA

CEO Jensen Huang doesn’t acknowledge the Metaverse, but the company NVDA, +2.41% has been playing a pivotal role in developing this technology with its Omniverse Platform. With 40 million developers looking for the tools to unlock the Metaverse, NVIDIA’s technology seems primed to be a critical contributor, and we will most likely see NVIDIA continue to run alongside this trend in 2022.

Top pick: Qualcomm

5G has been a hot topic for a few years, but the technology gained steam in 2021 with more than 560 million 5G handsets shipping worldwide. Qualcomm QCOM, +1.83% benefits as both a leading chip maker and licenser of 5G technologies that goes into nearly every 5G-enabled handset. The year ahead will be another big year for 5G. It won’t just be handsets, but also automotive, IoT, infrastructure and more–all of which are beneficial to Qualcomm.

Keep an eye out for: Apple

As part of their 2019 settlement, Apple AAPL, +2.50% still depends on Qualcomm for 5G chipsets and technology as part of its license agreement, which may last longer than most think. However, since rolling out its iPhone 13 with 5G, the company has quickly become the world’s leader in 5G handset shipments, accounting for nearly one-third of all 5G handsets worldwide. While I’ve been critical of the lack of 5G mmWave in its international units, I think that will come with the next generation, meaning more sales, more revenue and even happier shareholders.


Digital transformation

Top pick: Microsoft

Microsoft MSFT, -0.47% has had a great year, with the stock up 53% though Dec. 28 and both revenue and profit continuing to grow every quarter under the leadership of Satya Nadella. Its portfolio from software to cloud to devices is one of the most, if not the most comprehensive, to meet the needs of enterprises in their transition to digital. Even with rising interest rates, inflation, and COVID-19, it’s hard to see a scenario where Microsoft’s stock doesn’t continue its ascent.

Keep an eye out for: Alphabet

With stock-market gains of 67% thought Dec. 28, Google parent Alphabet GOOG, +0.27% GOOGL, +0.10% has outperformed Microsoft. While a lot of its business success can be attributed to its massive ad revenue, Alphabet has quietly built up a modern productivity suite that includes Cloud, SaaS, business applications, collaboration, and more. That makes it a great partner for companies looking to expedite their digital transformation. With the ad business underpinning the company, I believe Alphabet’s bets on enabling digital for enterprise and SMB will help it keep its momentum in 2022.


E-commerce and customer experience

Top pick: Adobe

Amazon may feel like the low-hanging fruit here, but I think 2022 will be a big year for Adobe. The company’s stock recently took a significant hit following its earnings and investor day. Still, its stack of creative and experience technologies for marketers puts it in the pole position for a strong bounce back in 2022. Adobe’s experience cloud, which enjoys a rising TAM to more than $200 billion by 2024, is something I feel investors should keep a close eye on, as this is where the most significant subsection of Adobe’s growth will come over the next few years.

Keep an eye out for: Twilio

Hit hard by the growth selloff, Twilio’s TWLO, -0.40% stock is down more than 23% thought Dec. 28. However, its technology, developer ecosystem, and several key acquisitions, including Segment CDP, put the company in an excellent position as one of the leading platforms for enterprises seeking to deliver best-of-breed customer experiences through mobile and digital platforms. It’s far from a sure thing, but the upside for Twilio is enticing.

Enterprise collaboration

Top pick: Microsoft

With 250 million monthly active users, Microsoft Teams is the hands-down winner here. As the company diversifies to be more than just collaboration and the center of the work experience, it is looking increasingly difficult for the competition. Watch what Salesforce does with Slack, but right now, Microsoft has a big head start.

Keep an eye out for: Zoom

A pandemic darling, Zoom Video Communications ZM, +0.19% saw its stock shoot up to $500 on the stay-at-home trade, only to fall back below $200, causing its deal to acquire cloud contact-center software firm Five9 to fall apart. With all of that in mind, the company still enjoys a massive user base and strong double-digit growth after surpassing $1 billion a quarter in revenue. It is also diversifying with its platform into hybrid events and asynchronous messaging. As I see it, Zoom shares went up too fast and then went down too fast. I think there is an opportunity here for Zoom and its investors.


Artificial intelligence (AI)

Top pick: NVIDIA

This one isn’t even close, and investors have had their say as NVIDIA’s stock-market value has gone north of $760 billion and on its way to $1 trillion. Investors have shaken off its increasingly unlikely bid to acquire ARM, and that is because growth is so good without it. Whether it’s AI for gaming, Metaverse, conversation, recommendations, or automotive, the company offers the software, hardware, and frameworks needed to implement AI at scale.

Keep an eye out for: Amazon

Amazon has gone all-in on its homegrown chipmaking, and it will bear fruit for the company in 2022. While AWS’s portfolio of AI and machine learning services offers GPUs from the likes of Intel and NVIDIA, the company has built a future where its offers highly competitive or market-leading performance for AI training and inference. While I don’t see AWS going toe-to-toe with NVIDIA to be the “AI” company, I do think its rapid capabilities to deliver enterprise-oriented virtual servers in the cloud, known as instances, will help keep AWS growing near or above 30% rate it has enjoyed over the past year.


Autonomous vehicle/ADAS technology

Top pick: Intel Mobileye

I focused on technology makers that stand to win big from the interest in autonomous vehicles that has sent names like Lucid LCID, +7.57% and Rivian RIVN, -0.94% to stock-market values above GM, BMW, Volkswagen and others despite barely having any revenue. I believe Mobileye, now currently part of Intel INTC, +3.32%, is set to deliver big returns to shareholders in 2022. With the recent announcement that it will spin off its Mobileye business that it acquired less than five years ago, Intel stands to unlock considerable value through this deal. With more than 100 million eyeQ ADAS units shipped by Mobileye to date, I believe this could be an even bigger winner for investors who get in on Mobileye’s impending IPO as well as for Intel, which will remain Mobileye’s largest shareholder.

Keep an eye out for: Qualcomm

With recent design wins from the likes of BMW and GM, Qualcomm’s automotive design pipeline has swelled above $10 billion and stands to become the company’s next billion-dollar annual business. The company’s Snapdragon Ride platform is a full stack of components to address advanced driver assistance systems, or ADAS, telematics and infotainment, and it can be done on an open platform that makes it easier for large auto makers to adopt and iteratively upgrade their vehicles on a shorter time horizon.

I don’t think Qualcomm’s automotive business has been highly appreciated by investors as the company’s stock-market value has surged above $200 billion, and that could be a good thing for its share price in 2022.


Semiconductors

Top pick: AMD

Much like NVIDIA has become the darling of AI, AMD AMD, +4.41% has become one of the most exciting names in semiconductors; the company has taken market share in laptops, and perhaps more important, servers over the past few years.

The growth under CEO Lisa Su has been nothing short of remarkable. The stock has climbed 67% through Dec. 28, and the company claimed a 10% market share in the datacenter server space for the first time since 2007. That growth has been critical to the company’s top-line growth and its increasing margins, making it even more attractive to its investors.

Keep an eye out for: Marvell

It seems like Marvell MRVL, +2.22% CEO Matt Murphy can do no wrong. The chipmaker’s turnaround has been underpinned by solid growth in key secular trends, including 5G, automotive, and datacenter. In 2021, Marvell went from being part of a large swath of semiconductor names to one of the must-own names for those that share my belief that semiconductors will eat the world. The stock nearly doubled in 2021 and has recently hit an all-time high; count on more gains in 2022.


Enterprise software

Top pick: Salesforce

This one was a close call, given that Microsoft and Oracle both have had a solid year for their enterprise software. However, Salesforce CRM, +0.52% has been extraordinarily stable in its growth, and I’m increasingly optimistic about its platform, Hyperforce, and how that will expand its growth trajectory. The company has made several significant acquisitions in MuleSoft, Tableau and, most recently, Slack, and I think the best of Salesforce is yet to come. Its humble 15% stock-market gain through Dec. 28 makes it stand out as a smart pick for a pop in 2022.

Keep an eye out for: SAP

This name may not exude excitement, but SAP SAP, +0.92% SAP, -0.53% touts more than 425,000 customers, and this means strong recurring revenue. Now it’s making a real push into the cloud, and that transition makes SAP an interesting growth opportunity in 2022. With 77% of its revenue falling into the “predictable” category and mid-double-digit (20%) cloud growth, there is a real opportunity for upside if its cloud transformation continues to take shape.

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>>> Best Performing Sector ETFs Of The Year


Yahoo Finance

by Sumit Roy

December 30, 2021


https://finance.yahoo.com/news/best-performing-sector-etfs-021500432.html



In a year in which the S&P 500 has surged as much as it has, it’s tough to find a group of stocks that has done poorly.

Sure, there are pockets of weakness, such as in the ARK Innovation ETF (ARKK), which is down 23% year-to-date. But if you look at the big, broad indices and the major sectors that lie beneath them, there is no weakness to speak of.

That’s not a surprise considering the S&P 500 is up 29.2% on the year with only a few trading days left to go. No matter how you slice it, that’s a monster return—the third-largest of the past 10 years.

Four sectors have performed even better than the large cap index, while seven have done worse. In this article, we take a look at the performance for the 11 sectors under the Global Industry Classification Standard (GICS), using the SPDR suite of sector ETFs as a proxy.

Energy: From Boom To Bust

At the top of the 2021 sector rankings is energy, with a nearly 55% gain. Left for dead in 2020, the sector has made a stunning comeback this year thanks to oil’s rebound from a low of less than $20 last year (based on Brent crude oil prices) to more than $80 this year.

Natural gas prices have also surged, from $1.5/mmbtu last year to more than $6 at one point this year.

No wonder energy stocks got a boost this year—though they remain well off their all-time highs set in 2014, and the sector remains very much out of favor with increasingly ESG-focused investors and those who see the obsolescence of fossil fuels in the not-too-distant future.

Real Estate Comeback

Energy’s outperformance in 2021 was a surprise, as was the stellar performance of the No. 2 sector of the year, real estate, which is up 44.3%.

The real estate sector, which predominantly comprises real estate investment trusts (REITs), has benefited from low interest rates and a comeback in commercial restate.

For instance, even though the outlook for brick-and-mortar retail is still challenged, mall operator Simon Property Group recovered all of its losses from last year and more.

Meanwhile, other REITs, such as the REIT Prologis and wireless communications infrastructure provider American Tower Corporation, have benefited from the continued growth of e-commerce and 5G, respectively.

Relentless Tech Rally

The only two other sectors to beat the S&P 500 this year are technology and financials. Tech’s outperformance needs little explanation. It’s the same story investors have heard for years.

The relentless growth of companies like Apple, Microsoft and Nvidia (which account for half of the tech’s market capitalization) has fueled consistent gains for the sector. Under GICS, Google parent company Alphabet and Facebook parent company Meta aren’t considered technology stocks anymore—though many investors would argue otherwise.

Google has performed fantastically this year, gaining 67%. Meta has delivered a more modest 27%. The communication services sector in which they both reside lagged in 2021, returning 17.7%.

Some of the top holdings in XLC outside of Alphabet and Facebook—such as AT&T, Verizon and Comcast—have lagged the market significantly, weighing on the sector’s performance.

Financials Outperform, Safe Sectors Lag

The aforementioned financials sector has been another outperformer this year thanks to the solid showing in names like Berkshire Hathaway, J.P. Morgan, Bank of America and Wells Fargo, among others.

Interest rates are still low, but they are up from last year’s record-low levels and are anticipated to rise further as the Fed begins tightening monetary policy. That may help bolster the profitability of banks, insurance companies and other financials.

Finally, consumer discretionary, materials, health care, industrials, consumer staples and utilities are the sectors with below-market returns this year, which we haven’t yet touched on.

Utilities and consumer staples are the bottom two sectors, both relatively safe groups that have been neglected amid a booming stock market.

For a full breakdown of this year’s sector performance, see the table below:

Ticker

Sector

YTD Return (%)

XLE

Energy

54.86

XLRE

Real Estate

44.25

XLK

Technology

36.18

XLF

Financials

35.48

SPY

S&P 500

29.20

XLY

Consumer Disc.

28.45

XLB

Materials

26.81

XLV

Health Care

25.60

XLI

Industrials

20.79

XLC

Communication Services

17.68

XLP

Consumer Staples

16.24

XLU

Utilities

16.23

Data measures total returns for the year-to-date period through Dec. 28, 2021.

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>>> BlackRock Releases Megatrends Report


Yahoo Finance

by Heather Bell

December 6, 2021


https://finance.yahoo.com/news/blackrock-releases-megatrends-report-151500682.html


Today, BlackRock’s iShares arm released its report on the megatrend themes it expects to see accelerating in 2022 and beyond. Those three trends include digital transformation, automation and next-generation oncology. Much of that acceleration will be a continuation of trends that emerged during the global COVID-19 pandemic.

iShares has identified five megatrends: technological breakthrough; demographics and social change; climate change and resource scarcity; rapid urbanization; and emerging global wealth. Those five broad trends have driven the launches within iShares’ lineup of thematic ETFs.

That offering includes both actively and passively managed ETFs, which cater to different types of investors.

The active funds are designed for those investors who trust the ETFs’ managers to weight the themes within a broad category. The passively managed ETFs in the suite are for investors with strong convictions about individual themes who want to customize their thematic exposure, according to Jeff Spiegel, iShares’ head of megatrend and international ETFs and the author of the report.

“I would characterize it as a do-it-for-me versus a do-it-myself approach,” he said.

Digital Transformation

With remote work and online retail exploding during the global pandemic, the digital transformation is well on its way, with the cloud, in particular, consolidating its importance. The report by BlackRock indicates that global spending on cloud services is expected to grow from $332 billion this year to $397 billion in 2022, with 70% of organizations already using cloud services expecting to increase their spending in that area next year.

The report additionally notes that the rise of 5G, which is expected to reach 60% of the global population by 2026, will likely further facilitate that transition.

Spiegel says that only 12% of companies have moved their core applications to the cloud, so there is significant room for growth in the category, while the increasing sophistication of hackers and ransomware attacks have crystallized the importance of cybersecurity.

Among the BlackRock ETFs covering this space are the actively managed BlackRock Future Tech ETF (BTEK) and the passively managed iShares Virtual Work and Life Multisector ETF (IWFH), the iShares Cybersecurity and Tech ETF (IHAK) and the iShares Cloud 5G and Tech ETF (IDAT).


Automation

The pandemic continues to provide a major boost to the automation theme identified by BlackRock, with supply chain tangles, wage inflation and manufacturing demand all cited in the report as catalysts for greater adoption of automation and artificial intelligences.

The report notes that 67% of companies have ratcheted up their automation capabilities due to the pandemic, with the size of the robotic process automation market expected to grow from just $2 billion in revenue in 2018 to $14 billion in 2028.

Spiegel also points out supply chain disruptions could continue into 2023.

“As that dawns upon companies, they [know they] have to make their supply chains more resilient. And some of that means bringing production back home. Doing that cost effectively requires automation, especially in a world of wage inflation,” he added.

The report further notes that the increased attention to automation will manifest across all major industries, including the electric vehicles space.

In addition to BTEK, iShares also offers the passively managed iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) and the iShares Self-Driving EV and Tech ETF (IDRV).


Next-Generation Oncology

The genomics space was crucial in developing and launching the mRNA vaccines that are helping to bring an end to the global pandemic, but the area has even greater implications for oncology therapeutics, where immunotherapies can provide what the report calls “precision treatments” that specifically target cancer cells. The report further notes that oncology is already the largest therapeutic area and is likely to reach $250 billion in sales by 2024.

“We think it can be a great year for cancer treatments, and an important reminder that there are a lot of diseases threatening us and that we have to focus on, even in a world where one of them is obviously taking all the headlines,” Spiegel said.

BlackRock offers the actively managed BlackRock Future Health ETF (BMED) as well as the more targeted and passively managed iShares Genomics Immunology and Healthcare ETF (IDNA).

Incorporating Themes In A Portfolio

“If you take a look at the average portfolio, relative to any one of these thematic ETFs, you'll find that thematic ETFs tend to have more of a small- and midcap tilt to them,” Spiegel explained. “They tend to be more global than the average portfolio. They tend to have a little more concentration in technology communication services than the average portfolio.”

Because BlackRock focuses on pure-play exposure in its thematic ETFs, they tend to tilt toward small- and midcap exposures, often excluding more diversified large cap companies. The issuer recommends exposure matching when incorporating thematic ETFs into a portfolio’s equity sleeve, making sure investors’ thematic exposure fits with the amount of small- and midcap exposure they desire.

By doing that, Spiegel says investors can add a 10-20% allocation of thematic exposure to their portfolio’s equity sleeve without affecting the portfolio’s overall market risk, but adding some active risk into the mix.

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>>> VanEck Introduces YUMY: ETF Investing in the Future of Food


Yahoo Finance

December 2, 2021


https://finance.yahoo.com/news/vaneck-introduces-yumy-etf-investing-135600804.html


New fund offers actively managed exposure to the leading innovators and disruptors solving some of today’s most difficult agricultural challenges.


NEW YORK, December 02, 2021--(BUSINESS WIRE)--VanEck today announced the launch of the VanEck Future of Food ETF (YUMY), an actively managed equity ETF that provides exposure to companies engaged in agri-food technology and innovation.

YUMY is the first VanEck ETF to incorporate bottom-up, fundamental company research and will be overseen by portfolio managers Shawn Reynolds and Ammar James.

"The growing global population and the concurrent threats from climate change are driving the need for more sustainable agri-food processes and technologies in order to provide for a future with more affordable, nutritious and safe food for all," said Mr. Reynolds, Portfolio Manager for YUMY. Mr. Reynolds also oversees VanEck’s Environmental Sustainability and Natural Resources Equity Strategies. "We are now in the early stages of a multi-decade agri-food system transformation. Growth opportunities in this space currently exist, but the market remains nascent. A number of private firms appear poised to enter the public markets and several established companies are pivoting their business models to embrace the future of food, so an active approach to stock selection will position YUMY and its investors to capitalize on emerging trends."

To better understand and research the expansive global agriculture and food industry, VanEck has identified three proprietary pillars of the agri-food technology and innovation opportunity set:

Food Technology: alternative proteins, animal feed and nutrition, and sustainable aquaculture.

Precision Agriculture: vertical/indoor farming, robotics and automation, data collection and analysis, water and irrigation.

Agriculture Sustainability: seed genetics, sustainable and safe fertilizer and crop chemicals, and sustainable food preservation and packaging.

VanEck further noted the growing global population is driving the need for innovation as the population is expected to increase by 25% from 7.8 billion today to nearly 10 billion by 2050.1 More people are expected to enter the middle class than any time in history, accelerating anticipated consumption of protein and animal-based foods, which are resource-intensive to produce. By some estimates it may take as much as 70% more food production to feed this larger and wealthier population.2

"These growing needs have to be met with innovation, but they will also have to take into account the demands from both governments and consumers for cleaner, healthier and more environmentally sustainable approaches to feeding the world," added Mr. James, who also serves as an analyst specializing in agribusiness, timber, and paper and packaging research for the firm. "We’re thrilled to be bringing YUMY to the marketplace and look forward to continuing to share our insights and research with investors and advisors around this essential topic and key investment category."

Mr. James recently joined VanEck’s Head of ETF Product Ed Lopez on an episode of the Trends with Benefits podcast, to discuss the future of food, going into more detail on all of the points and trends discussed above.

VanEck has a long history in agriculture and sustainability-focused investing and is a leader in providing investors with solutions focused on relevant themes such as green bonds and the low carbon energy ecosystem. As a signatory of the Principles of Responsible Investment (PRI), VanEck incorporates ESG factors and analysis into their investment processes, and YUMY joins a lineup of sustainability-focused equity solutions that also includes the recently launched VanEck Green Metals ETF (GMET) and VanEck Environmental Sustainability Fund (ENVIX).

YUMY is listed on the NYSE Arca and has a net expense ratio of 0.69%.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of October 31, 2021, VanEck managed approximately $82.2 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.

Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.

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>>> ProShares Adds 3 Thematic ETFs


Yahoo Finance

by Heather Bell

September 30, 2021


https://finance.yahoo.com/news/proshares-adds-3-thematic-etfs-130000367.html


Today ProShares rolled out three technology-related ETFs that join its growing lineup of thematic ETFs. The funds and their tickers are as follows:

ProShares S&P Kensho Cleantech ETF (CTEX)

ProShares Big Data Refiners ETF (DAT)

ProShares S&P Kensho Smart Factories ETF (MAKX)

Each one comes with an expense ratio of 0.58% and lists on the NYSE Arca.

“Each ETF is designed to offer investors exposure to a rapidly changing industry, from the automation of manufacturing, to enhanced analytics and big data processing, to powering the transition to clean energy,” said ProShares CEO Michael Sapir in a press release.

CTEX tracks the S&P Kensho Cleantech Index, which targets companies globally that generate revenues by providing the technologies, products and services driving the generation of clean energy. This can involve solar, wind, geothermal, hydrogen and hydroelectric energy sources, according to the prospectus.

DAT tracks the FactSet Big Data Refiners Index, which holds companies involved in the management, storage, analysis and usage of large data sets. These can include providers of software, hardware and other equipment. The companies included in the index must generate at least 75% of their revenue from these business activities.

MAKX tracks the S&P Kensho Smart Factories Index, which focuses on the digitalization of factories and the companies that are facilitating this trend. Its scope covers providers of the software, sensors, technology, components and other equipment that support connectivity, environmental sensing and monitoring, conservation efforts and quality control, among other activities.

The three funds join other ProShares thematic ETFs such as the $341 million ProShares Pet Care ETF (PAWZ) and the $880 million ProShares Online Retail ETF (ONLN).

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>>> AI, Blockchain and Robotics ETFs Dominate


Investopedia

By NATHAN REIFF

March 17, 2021


https://www.investopedia.com/investing/ai-blockchain-and-robotics-etfs-dominate/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


Some of the most popular new investment themes focus on cutting-edge technologies such as artificial intelligence (AI), blockchain, and robotics. Below, we look at the exchange-traded funds (ETFs) that target these themes.

KEY TAKEAWAYS

Investors who want to narrowly focus on promising sectors such as AI, blockchain, or robotics—but don't want to pick individual stocks—might consider an ETF that targets these technologies.

One caveat, however, is that AI, blockchain, and robotics ETFs are likely to charge higher fees compared with ETFs that invest more broadly.

Because these technologies constantly evolve, investors need to regularly review what's inside the ETFs they're holding.
Thematic ETFs Present Long-Term Opportunities

According to Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA Research, investors are turning to cutting-edge technologies such as AI, blockchain, and robotics for the promise of higher returns over the long run. But he added the most popular choices all "tend to charge a premium price relative to market-cap-weighted ETFs."


This includes:

Global X Robotics & Artificial Intelligence ETF (BOTZ)1?

ROBO Global Robotics & Automation Index ETF (ROBO)2?

Siren NASDAQ NexGen Economy ETF (BLCN)3?

Capital Link NextGen Protocol ETF (KOIN)4?


Nonetheless, Rosenbluth says, "as more asset managers compete for investor interest, fees have and will continue to move lower."

Why might these ETFs be drawing so much interest from investors, despite their narrow focus and more expensive fees compared with traditional ETFs? For starters, it's important not to discount the effect of novelty. ETFs that focus on AI, blockchain, and robotics are relatively new.

Many investors are simply optimistic about these new industries and want to explore for themselves. Blockchain has been hailed as a breakthrough technology as important as the internet itself. Robotics offer the potential for greater efficiencies that come with increased automation, while artificial intelligence occupies a similar space.

While none of these technologies have yet to truly transform the business world (or the world at large), many believe they have strong potential to do so.

Long-Term Investors Should Not Be Complacent

It is crucial for long-term investors in ETFs, whether traditional or thematic, to remain involved in the investment process. "Investors should regularly review what's inside the ETFs they're holding to understand how the securities fit going forward," Rosenbluth says. "Investors should also periodically rebalance their assets as positions do not move up or down in tandem."

In other words, just because an ETF may be passively managed, that does not necessarily mean an investor can treat their individual investment passively.

This kind of advice applies to index ETFs just as much as it does ETFs representing new areas such as AI, blockchain, and robotics. Indeed, because these spaces constantly evolve, one might argue that investors in cutting-edge technologies need to remain even more vigilant. There remains great opportunities for investment success, but it requires constant care and maintenance.

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>>> Best Artificial Intelligence ETFs for Q4 2021

LOUP, ARKQ, and ROBO are the best AI ETFs for Q4 2021


Investopedia

By MATTHEW JOHNSTON

August 31, 2021


https://www.investopedia.com/investing/top-etfs-capitalizing-artificial-intelligence/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


Artificial intelligence (AI) exchange-traded funds (ETFs) seek to provide exposure to a fast-growing segment of the technology industry. AI aims to simulate human intelligence, leveraging powerful algorithms to make machines think and act like human beings. Though the automation of repetitive tasks and substitution of human labor by machines is nothing new, AI is accelerating this trend, resulting in giant leaps in productivity.

For investors who are optimistic about AI's growth potential but unsure which companies will perform best, an AI ETF is an option. AI ETFs hold a basket of stocks in companies that are engaged in some aspect of AI, enabling investors to share in the growth of AI companies' profits without the challenge of trying to separate the winners from the losers.

KEY TAKEAWAYS

The AI sector, as represented by the tech sector, slightly underperformed the broader market over the past year.

The ETFs with the best one-year trailing total return are LOUP, ARKQ, and ROBO.

The top holdings of these ETFs are Harmonic Drive Systems Inc., Tesla Inc., and Intuitive Surgical Inc., respectively.
A special note: Some ETFs that use AI as a tool for picking stocks are also sometimes referred to as AI ETFs. But this story focuses on ETFs targeting companies that use AI for other industries, such as robotics, automation, healthcare, and automobiles.

There are six distinct AI ETFs that trade in the U.S., excluding inverse and leveraged funds as well as those with less than $50 million in assets under management (AUM). The AI sector does not have its own benchmark, but its performance is best reflected in the index for the technology sector, the S&P 500 Information Technology Sector Index. The information technology (IT) index has slightly underperformed the broader market with a total return of 30.5% over the past 12 months, just below the S&P 500's total return of 31.4%, as of Aug. 27, 2021.1 The best-performing AI ETF, based on performance over the past year, is the Innovator Loup Frontier Tech ETF (LOUP). We examine the three best AI ETFs below. All data in the lists below is as of Aug. 27, 2021.2


Innovator Loup Frontier Tech ETF (LOUP)

Performance Over One-Year: 51.7%
Expense Ratio: 0.70%
Annual Dividend Yield: N/A
3-Month Average Daily Volume: 14,789
Assets Under Management: $76.9 million
Inception Date: July 25, 2018
Issuer: Innovator

LOUP is a multi-cap ETF that tracks the Loup Frontier Tech Index, which holds a basket of companies representing AI technology as well as robotics, fintech, autonomous vehicle technology, virtual reality, and similar technologies. LOUP holds approximately 30 stocks, with the majority of them based in the U.S. The fund follows a blended strategy, investing in a mix of growth and value stocks.3 Its top three holdings include Harmonic Drive Systems Inc. (6324:JAS), a Japan-based manufacturer of mechatronics products and speed reducers; Snap Inc. (SNAP), a camera and social media company; and Class A sponsored ADRs of Baidu Inc. (BIDU), a China-based company offering Internet search engine and other online services.3


ARK Autonomous Technology & Robotics ETF (ARKQ)

Performance Over One-Year: 45.1%
Expense Ratio: 0.75%
Annual Dividend Yield: 0.80%
3-Month Average Daily Volume: 356,112
Assets Under Management: $2.7 billion
Inception Date: Sept. 30, 2014
Issuer: ARK

ARKQ holds a basket of multi-cap equities focused on autonomous vehicles, robotics and automation, 3D printing, energy storage, and space exploration. Until November of 2019, the fund was called the ARK Industrial Innovation ETF.4 ARKQ is an actively managed ETF that employs a growth strategy and is geographically diversified across developed markets throughout the world. The fund's top three holdings include Tesla Inc. (TSLA), an electric vehicle and clean energy company; Trimble Inc. (TRMB), a provider of advanced location-based software solutions; and Kratos Defense & Security Solutions Inc. (KTOS), a defense contractor and security systems integrator for the U.S. federal government as well as state and local agencies.5


ROBO Global Robotics & Automation Index ETF (ROBO)

Performance Over One-Year: 40.5%
Expense Ratio: 0.95%
Annual Dividend Yield: 0.18%
3-Month Average Daily Volume: 81,840
Assets Under Management: $1.8 billion
Inception Date: Oct. 22, 2013
Issuer: Exchange Traded Concepts

ROBO seeks to track the ROBO Global Robotics & Automation Index, which gauges the performance of companies engaged in robotics, automation, and AI.6 The ETF provides exposure to companies developing intelligent systems technology capable of sensing, processing, and acting, and companies that apply that technology.7 The ETF follows a blended strategy of investing in a mix of value and growth stocks. It is diversified across a range of market capitalizations and developed markets. The fund's top three holdings include Intuitive Surgical Inc. (ISRG), a provider of robotics-assisted minimally invasive surgery technology; ServiceNow Inc. (NOW), a software company that provides a cloud computing platform for digital workflows; and Vocera Communications Inc. (VCRA), a provider of instant voice communication solutions.

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>>> Infrastructure ETFs Can Lean Cyclical, Defensive


Yahoo Finance

Todd Rosenbluth

August 17, 2021


https://finance.yahoo.com/news/infrastructure-etfs-lean-cyclical-defensive-151500527.html


Key Takeaways

Infrastructure ETFs are in focus, with the U.S. Senate passing the Infrastructure Investment and Jobs Act last week. If enacted, the new law would support revenue growth across various sectors and industries.

The Global X U.S. Infrastructure Development ETF (PAVE) is the largest of these cross-sector thematic funds. The industrials- and materials-focused ETF has recently climbed sharply in value.

The iShares U.S. Infrastructure ETF (IFRA) and the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) sound like PAVE, yet have incurred less volatility recently due to stakes in more defensive real estate and/or utility companies.

Fundamental Context

The U.S. Senate passed the $1.2 billion Investment and Jobs Act last week, and it could become law by fall. If passed by the full Congress and signed by President Biden, the law would result in investments of approximately $260 billion in transportation and transit, $100 billion in digital infrastructure and infrastructure reliance, $90 billion in clean technologies and $85 billion in water infrastructure, according to analysis by asset manager Global X.

Spending would include repairing and replacing roads and bridges; improving Amtrak and public transit; modernizing airports; investing in smart grid technologies; enhancing water distribution and storage; and boosting broadband speeds for all Americans. The diversity of the potential corporate beneficiaries highlights the merits of looking to ETFs.

However, there are 17 U.S.-listed ETFs with infrastructure in their names managing $17 billion in assets. Global X's PAVE is the largest, with $4.5 billion in assets as of Aug. 13 according to CFRA's ETF data, but there are 10 other ETFs with more than $100 million, including products offered by BlackRock, First Trust, Pacer and ProShares.

Some of the ETFs, such as the First Trust North American Energy Infrastructure ETF (EMLP) and the Pacer Benchmark Data Infrastructure Real Estate SCTR ETF (SRVR), are targeted to one sector, while others provide exposure to multiple, but not all, sectors.

Portfolio Differences

PAVE invests in more cyclical sectors than many of its peers. At the end of July, the ETF had 71% of assets in industrials and 22% in materials, with some of the remainder in consumer discretionary and information technology stocks.

PAVE only invests in stocks of U.S. companies. Within industrials, the ETF holds CSX Corporation (CSX), Deere Company (DE), Jacobs Engineering (J) and Trane Technologies (TT); within the materials sector (23%), the fund owns Martin Marietta Materials (ML) and Steel Dynamics (STLD).

IFRA also only invests in U.S. companies but is constructed differently than PAVE. While industrials (30% of assets) and materials (19%) are well-represented in IFRA, the more defensive utilities sector (44%) is the largest, offsetting the cyclical exposure. American Water Works Company (AWK), Cleveland-Cliffs (CLF), Duke Energy (DUK), NextEra Energy (NEE) and Quanta Services (PWR) are examples of the fund's holdings. There is some overlap; for example, both PAVE and IFRA own CSX.

TOLZ is even more defensively positioned at the sector level and provides a distinct portfolio. TOLZ's largest recent sector was also utilities (36% of assets), but the fund had high exposure to strong cash-flow-generating MLPs within the energy sector (28%), such as Enterprise Products Partners (EPD), and real estate companies (18%), such as broadband supportive communications companies like American Tower (AMT) and Crown Castle (CCI).

Meanwhile, the fund had just 13% in industrials and no materials exposure. TOLZ also holds stakes in non-U.S. companies like Cellnex Telecom and National Grid. Infrastructure spending proposals focused on climate change and digital infrastructure have been prevalent in Europe as well.

Risk/Reward

PAVE has generated higher returns than IFRA and TOLZ recently, but has also incurred more volatility. CFRA does not believe investors should rely on just past performance in choosing an ETF, but track records do matter and help demonstrate the need to look inside.

In the one-year period ended Aug. 13, PAVE rose 60%, stronger than the 45% and 19% gained by IFRA and TOLZ, respectively. While IFRA charges a slightly lower expense ratio than its peers (0.40% vs. 0.47% for PAVE and TOLZ), the performance differences are primarily due to the unique portfolios.

However, PAVE's one-year volatility of 23.4 was modestly higher than IFRA's 20.3, and much higher than TOLZ's 13.4. Investors considering these ETFs should understand the risk/reward trade-offs between the more cyclical PAVE, the more defensive TOLZ and the more balanced of the three, IFRA.

Conclusion

We expect more investors will be focused on the infrastructure-themed ETF universe, with Congress potentially agreeing to spend more money to support transportation, digital and clean energy infrastructure. However, these cross-sector ETFs come in different packages. Before considering one of them, investors need to understand the risk considerations, reward potential and cost factors.

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>>> Move over, Cathie Wood: 3 picks from Goldman Sachs' new ETF that could smash Ark


MoneyWise

by Sigrid Forberg

September 24, 2021


https://finance.yahoo.com/news/move-over-cathie-wood-3-141700625.html


Goldman Sachs is hoping to give Cathie Wood a run for her (very large pot of) money.


The investment banking giant launched a technology ETF last week seemingly to compete with Wood’s successful firm, Ark Invest, for the dollars of innovation-focused investors.

Unlike Wood’s flagship ETF Ark Invest (ARKK), which is heavily exposed to mega-cap innovators like Tesla and Shopify, the Goldman Sachs Future Tech Leaders Equity ETF (GTEK) looks to invest in smaller under-the-radar tech names with more room to grow.

Let’s take a look at GTEK’s top three holdings. One of them could be the next mega-cap millionaire maker — and worth pouncing on using just some spare change.


1. Marvell Technology (MRVL)

Based in Delaware, this semiconductor technologist is GTEK’s largest holding representing 3.4% of the portfolio.

As technology evolves and more and more connections are being powered by the “internet of things,” advanced machine learning, and 5G — especially through the pandemic — Marvell’s long-term growth trajectory is highly attractive.

Specifically, its diverse products will prove useful as even further technological advances in AI, network connected industrial equipment and even autonomous vehicle technology require more information.

Despite facing intense competition from the likes of Micron Technology and Broadcom, Marvell has been posting impressive numbers.

In Q2, it brought in a record revenue of $1.076 billion, which represents 48% growth year over year. And 40% of its growth came from its data center sector.

When announcing the results, Matt Murphy, Marvell’s president and CEO, added that he expects the company’s 5G business to continue to generate strong revenue growth throughout the rest of the year.


2. MercadoLibre (MELI)

Laptop computer displaying logo of Mercado Libre, an Argentine company that operates online marketplaces dedicated to e-commerce and online auctions

Hailing from Buenos Aires, Argentina, MercadoLibre is an online commerce platform operating in 18 Latin American countries.

Basically, it’s the eBay of South America, and accounts for 3.2% of GTEK’s holdings.

MercadoLibre, which translates to “free market,” is an already large e-commerce community that is continuing to grow. On its site, the company notes that Latin America has a population of more than 635 million people and has one of the fastest-growing internet penetration rates in the world.

In the first half of 2021, the company recorded 98 million unique active users and moved $13 billion in merchandise over that period.

Specifically in Q2, MercoLibre saw net revenues of $1.7 billion — a 93.9% increase on a year-over-year basis as well as a 47.4% growth to its unique active visitors rate.

Given the size of the region it serves, MercadoLibre has massive potential for growth and appears poised to continue to grow its presence in the e-commerce and digital payment sphere.

To be sure, MercadoLibre trades at more than $1,880 per share. But you can get a piece of MercadoLibre using a popular stock trading app that allows you to buy fractions of shares with as much money as you’re willing to spend.


3. HubSpot (HUBS)

Hands holding smartphone displaying logo of HubSpot, an American developer and marketer of software products for inbound marketing, sales, and customer service

This software company offers a suite of products to help manage customer relationships for marketing, sales and customer service organizations.

The company reports it has more than 121,000 customers in more than 121 countries.

It represents 2.8% of GTEK’s portfolio.

HubSpot reported $310.8 million in total revenue in the second quarter — up 53% from the year before. Subscription revenue accounted for $300.4 million of that sum, which was also an increase of 53% from the same quarter the year before.

By the end of the year, the company anticipates its total revenue to be in the range of $1.268 billion to $1.272 billion.

Clearly, HubSpot sees plenty of room for growth in its industry and it’s aiming to gain a larger and larger slice of that pie.

A less volatile approach

All three stocks look like solid bets for investors interested in the future of technology. That said, growing innovators tend to reinvest all of their profits back into the business.

If you're a risk-averse investor looking to diversify into something more stable, you might prefer assets that produce cold, hard cash.

And you don't have to limit yourself to the stock market.

For instance, some popular investing services make it possible to lock in a steady rental income stream by investing in premium real estate properties — from commercial developments in LA to residential buildings in NYC.

You’ll gain exposure to high-end properties that big-time real estate moguls usually have access to, and you’ll receive regular payouts in the form of quarterly dividend distributions.

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>>> AdvisorShares Launches Psychedelics ETF (Ticker: PSIL)


Yahoo Finance

September 16, 2021


https://finance.yahoo.com/news/advisorshares-launches-psychedelics-etf-ticker-122700695.html


AdvisorShares Psychedelics ETF delivers focused exposure to invest in a new medical frontier


BETHESDA, Md., Sept. 16, 2021 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced the launch of the AdvisorShares Psychedelics ETF (Ticker: PSIL). PSIL begins its trading as the first U.S.-listed actively managed ETF to deliver dedicated investment exposure to psychedelics and this emerging equity theme.

PSIL seeks long-term capital appreciation by investing in the fast-evolving psychedelics space, offering exposure to those biotechnology, pharmaceutical and life sciences companies which the portfolio manager views as leading the way in this nascent industry. Ongoing and growing research has shown various psychedelic substances offer promising medical and therapeutic potential for treating mental health issues and neurological disorders. PSIL concentrates its portfolio on companies which derive the majority of their net revenue or devote the majority of their assets to psychedelic drugs.

"We believe that by investing in select companies in the psychedelics space can provide a compelling long-term investment opportunity, however, this is also an area of the marketplace in its early innings," said Dan Ahrens, chief operating officer of AdvisorShares and portfolio manager of PSIL. "We feel that our active management and specialized approach can potentially help investors capture the early growth potential of psychedelics and its prominent promise on therapeutics and medical fields."

Ahrens has an established expertise and track record of actively managing complex areas of the equity markets including as the portfolio manager of AdvisorShares Pure US Cannabis ETF (Ticker: MSOS), AdvisorShares Pure Cannabis ETF (Ticker: YOLO) and the AdvisorShares Vice ETF (Ticker: VICE). He is also portfolio manager for the AdvisorShares Hotel ETF (Ticker: BEDZ) and AdvisorShares Restaurant ETF (Ticker: EATZ) which both launched in June 2021.

"We believe that delivering this strategy in an ETF structure with daily transparency, intraday liquidity and operational efficiency provides an ideal way for advisors and investors to access this burgeoning market," added Noah Hamman, chief executive officer of AdvisorShares. "As we continue to navigate highly specialized areas of the marketplace, we also remain steadfastly committed to providing ongoing investment education for our ETF shareholders, prospective investors and the investment community at large."

AdvisorShares regularly hosts live webinars featuring portfolio managers and leading industry experts. You may learn more and register at the AdvisorShares Event Center for upcoming events sessions on different investment strategies including on psychedelics and PSIL.

About AdvisorShares

AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.

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