Gold Miners Slide as Growth ETFs Take the Lead

Wednesday’s ETF action favored growth-oriented equities, with IWF and IYW leading the equity complex, while defensive commodity-linked exposures lagged as GDX and GLD came under pressure. In fixed income, preferreds were one of the few areas to finish higher as longer-duration Treasuries weakened, while alternatives were mixed with IBIT and PDBC advancing against declines in gold and oil funds.

Gold Miners tanked 2.96%

Equity ETFs:

Outperformers: Russell Growth IWF +1.81% (3M perf: -1.4%), US Technology IYW +1.68% (+1.7%)

Underperformers: Gold Miners GDX -2.96% (3M perf: +1.3%), Infrastructure PAVE -1.71% (+6.5%)

3M Regime:

Strong: South Korea EWY (3M perf: +34.8%), Brazil EWZ (+27.1%), Taiwan EWT (+22.1%)

Weak: China MCHI (3M perf: -8.6%), China Large Cap FXI (-8.4%), India INDA (-5.8%)

Signals to Monitor:

• Volatility Expansion: Energy XLE

• Overbought: Taiwan EWT, Russell Growth IWF, US Technology IYW

Long Treasuries fell 0.44%

Fixed Income ETFs:

Outperformers: Preferred Stock PFF +0.35% (3M perf: +0.2%), Short Corporate VCSH -0.01% (+0.6%)

Underperformers: Long Treasuries TLT -0.44% (3M perf: unch.), Int. Treasuries IEF -0.22% (+0.2%)

3M Regime:

Strong: EM Sovereign Bonds EMB (3M perf: +1.4%), Short TIPS VTIP (+1.3%), TIPS TIP (+1.0%)

Weak: Global Bonds BNDX (3M perf: -0.2%), Long Treasuries TLT (unch.), Muni Bonds MUB (+0.1%)

Gold weakened 1.04%

Alternative ETFs:

Outperformers: Bitcoin Trust IBIT +1.02% (3M perf: -20.6%), Broad Commodities PDBC +0.29% (+24.3%)

Underperformers: Gold GLD -1.04% (3M perf: +4.5%), Oil USO -1.02% (+66.8%)

3M Regime:

Strong: Oil USO (3M perf: +66.8%), Broad Commodities PDBC (+24.3%), Real Estate Sector XLRE (+6.8%)

Weak: Bitcoin Trust IBIT (3M perf: -20.5%), Silver SLV (-8.6%), Copper CPER (+1.0%)

Signals to Monitor:

• Volatility Compression: 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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