U.S. Bank ETFs fall into our Weekly Worst ETFs list

U.S. Bank Stocks sent lower by Fed Chair tapering comments

Federal Reserve Chair Jerome Powell announced on Friday, August 27th that bond tapering could start this year but that the central bank is in no rush to hike interest rates. The announcement weighed on U.S Bank Stocks whose earnings prospects benefit from higher interest rate.

ETFs in Europe and America that invest in U.S. Bank stocks traded lower the following week with Invesco KBW Bank ETF(KBWB), Xtrackers MSCI USA Banks UCITS ETF (XUFB) and iShares S&P U.S. Banks UCITS ETF losing more than 3%.

Brazil ETFs fell on weak economic data

Last week, Brazil released its latest economic data, showing a GDP contraction of 0.1% in the June quarter. The central bank warned markets to revise 2021 GDP expectations lower after the data. Also, July industrial production data fell a more-than-expected 1.3%. The weak results drove a selloff in Brazilian equities and was showcased with falling Brazil equities ETFs with iShares BM&FBOVESPA Small Cap ETF, iShares MSCI Brazil Small-Cap ETF and Franklin FTSE Brazil UCITS ETF shedding more than 3%.

Honorable mentions: Brazil ETFs and Breakwave Dry Bulk Shipping ETF

• Chicago Mercantile Exchange live cattle futures fell last week on weaker beef prices. Traders were worried that U.S. demand for beef will decline after the Labor Day holiday weekend. Normally, beef prices top out ahead of Labor Day, marking the end-of-summer sales stock ups. WisdomTree Live Cattle (CATL) and WisdomTree Livestock fell by more than 2.5% last week.
• On the grain side, Hurricane Ida sent corn prices in Chicago to seven-week lows as broken grain elevators and power outages in the U.S.’s busiest agricultural port raised concerns about grain supplies with nowhere to go. WisdomTree Corn and Teucrium Corn Fund dropped last week by more than 4%.
• Breakwave Dry Bulk Shipping ETF(BDRY), one of the best performing ETFs year-to-date plunged by -5.38% last week due to falling dry bulk shipping rates. The Baltic Exchange Dry Index, which factors in rates for capesize, panamax, supramax and handysize vessels fell by 7% between August 30 and September 3, as demand eased across all vessel segments.

Bottom 10 ETFs of the week: Base Metals and Palladium ETFs

Europe

• WisdomTree Corn: -6.05%
• KraneShares ICBCCS SSE STAR Market 50 Index UCITS ETF: -5.72%
• Xtrackers Physical Rhodium ETC: -5.39%
• Xtrackers MSCI USA Banks UCITS ETF: -4.28%
• WisdomTree Live Cattle: -4.04%
• iShares S&P U.S. Banks UCITS ETF: -3.81%
• WisdomTree Grains: -3.72%
• Franklin FTSE Brazil UCITS ETF: -3.43%
• WisdomTree Livestock: -3.25%
• Lyxor PEA Brésil (MSCI Brazil) UCITS ETF: -3.13%

Americas

• ProShares Ultra VIX SHORT-TERM FUTURES ETF: -6.23%
• Breakwave Dry Bulk Shipping ETF: -5.39%
• KraneShares SSE STAR Market 50 Index ETF: -5.09%
• iShares BM&FBOVESPA Small Cap ETF: -4.93%
• VanEck Vectors Brazil Small-Cap ETF: -4.16%
• iShares MSCI Brazil Small-Cap ETF: -4.15%
• Teucrium CORN Fund: -4.07%
• Invesco KBW Bank ETF: -3.67%
• Horizons BetaPro S&P 500 Vix Short-Term Futures ETF: -3.62%
• Davis Select Financial ETF: -3.16%

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