Copper Miners Lead as Brazil Extends ETF Strength

ETF leadership on Friday was concentrated in copper and Brazil exposures, with COPX up 2.40%, CPER gaining 1.87%, and EWZ adding 1.95%, while defensive inflation-linked bond funds TIP and VTIP posted modest advances. On the weaker side, selling pressure showed up in healthcare and lower-quality credit, as IBB fell 1.62%, XLV dropped 1.35%, and high-yield ETFs HYG and JNK both declined, while USO also gave back 1.69% after a strong three-month run.

Copper Miners jumped 2.40%

Equity ETFs:

Outperformers: Copper Miners COPX +2.40% (3M perf: +10.4%), Brazil EWZ +1.95% (+25.7%)

Underperformers: Biotechnology IBB -1.62% (3M perf: -1.6%), Healthcare XLV -1.35% (-6.5%)

3M Regime:

Strong: South Korea EWY (3M perf: +30.1%), Brazil EWZ (+25.7%), Energy XLE (+23.1%)

Weak: Financials XLF (3M perf: -8.7%), China MCHI (-8.2%), India INDA (-8.2%)

Signals to Monitor:

• Volatility Expansion: Energy XLE

• Overbought: Brazil EWZ

High Yield fell 0.40%

Fixed Income ETFs:

Outperformers: TIPS TIP +0.05% (3M perf: +0.9%), Short TIPS VTIP +0.04% (+1.1%)

Underperformers: High Yield HYG -0.40% (3M perf: +0.2%), High Yield Bonds JNK -0.34% (+0.3%)

3M Regime:

Strong: Short TIPS VTIP (3M perf: +1.1%), TIPS TIP (+0.9%), EM Sovereign Bonds EMB (+0.8%)

Weak: Preferred Stock PFF (3M perf: -0.8%), Global Bonds BNDX (-0.4%), Int. Treasuries IEF (unch.)

Copper rallied 1.87%

Alternative ETFs:

Outperformers: Copper CPER +1.87% (3M perf: +0.5%), Ethereum Trust ETHA +1.67% (-27.3%)

Underperformers: Oil USO -1.69% (3M perf: +76.9%), Broad Commodities PDBC -0.88% (+25.1%)

3M Regime:

Strong: Oil USO (3M perf: +77.0%), Broad Commodities PDBC (+25.1%), Managed Futures DBMF (+7.7%)

Weak: Ethereum Trust ETHA (3M perf: -27.3%), Bitcoin Trust IBIT (-19.3%), Silver SLV (-0.9%)

Signals to Monitor:

• Volatility Compression: Ethereum Trust ETHA, Bitcoin Trust IBIT

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Romain Gandon — CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.

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