ProShares Online Retail ETF (ARCA:ONLN), Trade Ideas

Amazon_Go_in_Seattle,_December_2016

News

Tech

Media

AMZN

ONLN

Select Sector SPDR-Consumer Discretionary

Amazon plans to expand its Just Walk Out cashierless shopping technology to more stores, while also testing smart carts and revamping its Fresh locations.

Amazon Aims to Outdo Walmart&#39;s Retail Game, Boosts Cashierless Tech in Stores

US-China (Tatiana Popova and rawf8 by Shuttterstock)

Government

Regulations

BABA

INTC

NVDA

PowerShares Golden Dragon Halter USX China Portfolio

Alibaba co-founder Joe Tsai says China is 2 years behind US in AI development due to technology restrictions. Companies seek alternatives to circumvent limitations.

US Embargo On Nvidia Stings Hard, China&#39;s AI Development Lags Peers: Alibaba&#39;s Joe Tsai Reveals

amazon vancouver office-Company

Amazon resumes construction of 42-story office tower in Bellevue, Seattle suburb, after pandemic pause. Aims for hybrid work model with 25,000 workers in Bellevue and strategic real estate plan.

Amazon Revives Bellevue Tower Construction, Eyes Office Expansion Amid Hybrid Work Shift

ProShares Online Retail ETF

In a recent turn of events, shares of Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) have taken a nosedive, while six S&amp;P 500 stocks have seen a surge.
What Happened: When Tesla&#8217;s shares dip, six S&amp;P 500 stocks tend to rise, CNBC Pro <a href="https://www.cnbc.com/2024/04/23/when-tesla-shares-fall-these-6-stocks-tend-to-rise-according-to-recent-history.html">reported</a> on Monday. These include Linde (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LIN#NASDAQ">LIN</a>), FMC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FMC#NYSE">FMC</a>), eBay Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>), Church &amp; Dwight (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHD#NYSE">CHD</a>), Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), and Wells Fargo (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>). Over the past month, these stocks have shown an inverse correlation to Tesla&#8217;s performance. While Tesla&#8217;s shares have seen a 40% drop this year, these six stocks have generally risen.
Deutsche Bank analyst Emmanuel Rosner predicts that Tesla&#8217;s rough patch may persist as the company might shift its focus from a new low-cost vehicle to self-driving technology. Rosner recently slashed his price target on Tesla&#8217;s stock from $189 to $123, indicating a potential downside of around 15% over the next year.
See Also: <a href="https://www.benzinga.com/news/24/04/38346954/trump-in-hot-seat-in-hush-money-case-prosecutors-seek-deep-dive-into-ex-presidents-alleged-misconduc?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump In Hot Seat In Hush-Money Case, Prosecutors Seek Deep Dive Into Ex-President&#8217;s Alleged Misconduct And Manipulation</a>
However, it is crucial to understand that the inverse movement of these stocks to Tesla&#8217;s does not imply causation or guarantee future returns or price action patterns. Church &amp; Dwight is the only stock that showed an inverse correlation to Tesla both in March and last week.
Why It Matters: This shift in stock performance comes in the wake of Tesla&#8217;s recent decisions. The company recently laid off its U.S. marketing team, with CEO Elon Musk <a href="https://www.benzinga.com/news/24/04/38370123/elon-musk-admits-tesla-ads-were-far-too-generic-after-laying-off-us-marketing-team-couldve-been-any">stating that the team&#8217;s ads </a>were &#8220;far too generic.&#8221; This move was part of a 10% company-wide layoff.
Additionally, Tesla has significantly reduced the price of its full self-driving (FSD) driver assistance software. Less than a year ago, <a href="https://www.benzinga.com/news/24/04/38351810/tesla-fsd-is-now-nearly-50-cheaper-than-when-elon-musk-called-it-very-low-just-under-a-year-ago">Musk considered $15,000 a low price for FSD</a>. However, the price has since been cut by about 50%. This price reduction could be a factor in the company&#8217;s shifting focus towards self-driving technology.
Read Next: <a href="https://www.benzinga.com/news/24/04/38356833/liz-cheney-says-trump-doing-everything-possible-to-postpone-jan-6-case-beyond-election-deep-flaws-in?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Liz Cheney Says Trump &#8216;Doing Everything Possible&#8217; To Postpone Jan. 6 Case Beyond Election: &#8216;Deep Flaws In Character&#8230;Make Him Unfit To Serve As President&#8217;</a>
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

Equities

Markets

General

EBAY

TSLA

When Tesla Dips, These Six S&P 500 Stocks Including eBay, Walmart And Wells Fargo Often Soar: Analysis

Macro Economic Events

Econ #s

Economics

S&P Global/CIPS U.K. Services Purchasing Managers Index Preliminary 54.9 Vs. 53.0 Est.; 53.1 Prior

S&P Global/CIPS U.K. Manufacturing Purchasing Managers Index Preliminary 48.7 Vs. 50.3 Est.; 50.3 Prior

S&P Global/CIPS U.K. Composite Purchasing Managers' Index Preliminary 54.0 Vs. 52.8 Prior

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has been moving sideways ever since the<a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38345043/bitcoin-shrugs-off-fourth-halving-miner-rewards-halved-price-holds-strong"> halving event that took place late Friday,</a> and Cathie Wood&#8217;s Ark Invest on Monday weighed in on the potential impact of the event.
What Happened: The growth in Bitcoin supply fell from 1.8% to 0.9% at an annual rate, said Yassine Elmandjra, Director of Digital Assets, at Ark. The crypto&#8217;s supply growth, therefore fell below the supply of gold, which is estimated to be 1.7% in 2023, he said.
Explaining the process of halving, the analyst noted that due to Bitcoin&#8217;s &#8220;mathematically metered supply growth,&#8221; the reward for mining a block halves every 210,000 blocks, and this takes place roughly every four years. The first halving that occurred in November 2012, reduced the reward from 50 to 25 bitcoins per block and Friday's halving reduced the block reward from 6.25 to 3.125 bitcoins per block, he added.
&#8220;The halving is critical to Bitcoin's design, highlighting its predictable monetary policy and Bitcoin's role as a scarce asset,&#8221; the analyst said.
&#8220;By reducing miner rewards by 50% every four years, Bitcoin lowers the supply growth &#8230; on a predetermined schedule, guaranteeing that the total number of bitcoins outstanding will never exceed 21 million, its predetermined cap.&#8221;
See Also: <a href="https://www.benzinga.com/money/top-10-cryptocurrencies">10 Best Cryptocurrencies</a>
On the contrary, sovereign or government-backed currencies&#8217; supply growth can be adjusted at will by central bank policymakers, Elmandjra said.
Bitcoin&#8217;s circulation currently stood at about 19.7 million, which is only 6.5% below the 21 million at which it is capped, he said.
The analyst also flagged the possibility of an imminent rally. &#8220;Since its inception 15 years ago, Bitcoin's halving has taken place in the context of extended bull market runs,&#8221; he said. In the 12 months following the three previous halvings, Bitcoin&#8217;s price appreciation has ranged from about 285% to about 8,478.2%, with an average gain of around 3,108%, he said.
Why It&#8217;s Important: Bitcoin rallied hard in the run-up to the halving event but has seen lackluster sentiment since then. The crypto peaked at $73,750.07 on March 14, with the optimism that lingered after the launch of the spot Bitcoin ETFs contributing to the strength.
After coming off the level and breaking below the $70,000 barrier, the crypto resumed its uptrend ahead of the halving. Come April along with the risky bets, Bitcoin came under pressure due to fears that the Federal Reserve may not cut rates this year amid stubbornly high inflation.
The Fed may have to reverse its rate hikes some time down the line, which could reignite a rally in all risky bets. 
While Ark&#8217;s comparison with gold supply suggests Bitcoin is becoming less inflationary than the yellow metal, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/38015516/is-bitcoin-digital-gold-peter-schiff-says-perhaps-it-never-will-make-a-new-high-pri">Peter Schiff has always shunned branding it as</a> a form of digital gold. 
At last check, Bitcoin was little changed at $66,145.63, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data</a>.
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38369340/bitcoin-to-more-than-double-in-value-to-150k-by-year-end-says-standard-chartered-analyst-w">Bitcoin To More Than Double In Value To $150K By Year-End, Says Standard Chartered Analyst: &#8216;We Can Push Higher Again&#8217;</a>

Analyst Color

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

$BTC

Cathie Wood's Ark Invest Says Bitcoin Could Be Priming For Over 3,000% Rally Over Next 12 Months As King Crypto Becomes Less Inflationary Than Gold After Halving

President Joe Biden held a meeting with U.S. Rep. Alexandria Ocasio-Cortez (D &#8211; N.Y.) and other liberal lawmakers on Monday, as internal disagreements within the Democratic party over his support for Israel&#8217;s response to the Hamas attack continue to escalate.
What Happened: On Tuesday, President Biden had a meeting with Ocasio-Cortez, Sens. Bernie Sanders (I-V.T.) and Ed Markey (D &#8211; Mass.) all of whom have openly criticized Israeli Prime Minister Benjamin Netanyahu&#8217;s Gaza bombing campaign, Reuters reported. The meeting took place after Biden&#8217;s return from an Earth Day event in Virginia.
These lawmakers have previously voiced their opposition to Israel&#8217;s policies, with Ocasio-Cortez likening the humanitarian situation in Gaza to &#8220;an unfolding genocide.&#8221; Despite these disagreements, Ocasio-Cortez has supported Biden&#8217;s reelection, emphasizing the need to safeguard democracy both at home and abroad.
See Also: <a href="https://www.benzinga.com/news/24/04/38348258/marjorie-taylor-greene-takes-step-back-in-effort-to-remove-speaker-mike-johnson-but-blasts-him-as-a?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Marjorie Taylor Greene Takes Step Back In Effort To Remove Speaker Mike Johnson But Blasts Him As &#8216;A Lame Duck&#8217;</a>
Why It Matters: This meeting occurs as Biden&#8217;s endorsement of <a href="https://www.benzinga.com/news/24/04/38350131/biden-reaffirms-ironclad-support-for-israel-amid-passover-hamas-conflict">Israel&#8217;s response to the Oct. 7 Hamas attack</a> has created divisions within the Democratic party, potentially influencing Biden&#8217;s voter base ahead of the November presidential election. The White House and the lawmakers have not disclosed the topics discussed during the meeting.
Biden&#8217;s administration has maintained its backing for Israel, while increasingly highlighting the Palestinian humanitarian crisis. This follows Israel&#8217;s military offensive in response to the Hamas attack, which, as reported by Gaza&#8217;s health ministry, has led to the death of 34,000 Palestinians.
The meeting also comes in the wake of the <a href="https://www.benzinga.com/news/24/04/38353867/israeli-military-intel-chief-resigns-over-hamas-attack-failures-i-have-carried-that-black-day-with-m">resignation of Major General Aharon Haliva</a>, the head of Israeli military intelligence, who took responsibility for the intelligence failures that led to a devastating Hamas-led attack on Israel in 2023.
Earlier in April, an <a href="https://www.benzinga.com/news/24/04/38196069/israeli-strike-in-gaza-strip-kills-three-sons-four-grandchildren-of-hamas-leader-report">Israeli airstrike in Gaza</a> reportedly claimed the lives of three sons of Hamas leader Ismail Haniyeh, further escalating the conflict.
Read Next: <a href="https://www.benzinga.com/news/24/04/38348277/trump-vs-biden-nationwide-poll-shows-key-issue-decidedly-tilts-equation-in-favor-of-one-candidate" target="_blank" rel="noreferrer noopener">Trump vs. Biden: Nationwide Poll Shows Key Issue Decidedly Tilts Equation In Favor Of One Candidate</a>
Image via Shutterstock
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

Politics

Global

Biden Holds Meeting With AOC, Bernie Sanders And Other Lawmakers Amid Israel Policy Disputes

Biotech

Large Cap

Health Care

The European Commission Has Approved AstraZeneca's Voydeya (Danicopan) As An Add-on To Ravulizumab Or Eculizumab For Paroxysmal Nocturnal Hemoglobinuria Patients Who Have Residual Hemolytic Anemia

Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) has opened up the Quest operating system that powers its <a href="https://www.benzinga.com/topic/meta-quest">mixed reality devices</a> to third-party hardware manufacturers, taking a leaf out of Alphabet Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google playbook.
What Happened: Meta will collaborate with other hardware manufacturers to help them power their mixed reality headsets with its Quest operating system. This move is the result of Meta's investments in mixed reality, starting with Oculus in 2014 for $2 billion.
The company is collaborating with leading global technology firms to create a new ecosystem of mixed-reality devices. This will provide developers with a broader range of hardware to run their apps, similar to the PC and smartphone markets.
Subscribe to the&nbsp;<a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">Benzinga Tech Trends newsletter</a>&nbsp;to get all the latest tech developments delivered to your inbox.
The new hardware ecosystem will be powered by Meta Horizon OS, the mixed-reality operating system that drives the Meta Quest headsets. This OS combines core technologies that power today&#8217;s mixed reality experiences with features that prioritize social presence.
See Also: <a href="https://www.benzinga.com/markets/equities/24/04/38330972/metas-ai-assistant-now-integrates-real-time-google-search-bing-results-expert-calls-it-the-smart">Meta&#8217;s AI Assistant Now Integrates Real-Time Google Search, Bing Results: Expert Calls It &#8216;The Smart Route'</a>
Meta will also leverage its partnership with Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), to help manufacturers hop onto the Quest platform.
Meta is also making it easier for developers to reach their audiences by removing barriers between the Meta Horizon Store and App Lab, a platform that allows any developer who meets basic technical and content requirements to release software.
Why It Matters: Meta's decision to open up the Quest operating system adopts the strategy that Google used with Android. Smartphone makers like Samsung Electronics Co Ltd., Xiaomi, OnePlus, and others use Android, while Google does most of its core development.
Earlier, Meta also <a href="https://www.benzinga.com/news/24/04/38358203/mark-zuckerberg-wont-just-open-source-instagrams-code-but-would-he-do-it-for-a-10b-ai-model-he-says">open-sourced</a> its latest AI model, Llama 3, while CEO Mark Zuckerberg underscored the company's philosophy on open-sourcing technology.
Broadly, it follows the same path as Google took with Android – it standardizes the ecosystem, and several players, including Google itself, benefit from the economies of scale it results in.
Meta also recently <a href="https://www.benzinga.com/general/gaming/24/04/38364762/microsoft-meta-reveal-limited-edition-meta-quest-vr-headset-with-game-pass-bundle">collaborated with Microsoft</a> to produce a limited edition Meta Quest VR headset inspired by Xbox. It also <a href="https://www.benzinga.com/general/gaming/24/04/38342816/meta-quest-2-price-permanently-cut-in-half-concerns-linger-about-long-term-support">permanently slashed the price</a> of its Meta Quest 2 virtual reality headset to $199.
Price Action: Meta's stock closed 0.14% up at $481.73 on Monday, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.
Read Next: <a href="https://www.benzinga.com/news/24/04/38357333/elon-musk-reacts-to-tucker-carlson-saying-theres-ton-of-evidence-that-aliens-live-among-us-with-6000?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Reacts To Tucker Carlson Saying There&#8217;s &#8216;Ton Of Evidence&#8217; That Aliens Live Among Us</a>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Photo courtesy: Meta Platforms

GOOG

GOOGL

QCOM

Meta Takes A Leaf Out Of Google's Playbook, Aims To Make Quest OS The Android Of Mixed Reality

Earnings

NJDCY

Nidec Q4 EPS ¥(35.66) Up From ¥(102.89) YoY, Sales ¥593.51B Up From ¥543.08B YoY

Policy analyst Ed Mills from Raymond James anticipates that the popular social media platform TikTok may cease operations in the U.S. next year.
What Happened: On Monday, Mills expressed his views on the future of TikTok in the U.S. during CNBC&#8217;s &#8220;Last Call.&#8221;
He stated, "Once this was added on to the bills last week, this [became] inevitable," ahead of the Senate vote on the TikTok crackdown bill. 
Mills explained that the bill aims to prevent TikTok from seeking a favorable judge, instead placing the case in the DC Circuit Court of Appeal, a court likely to side with Congress and the President. This would allow the forced divestiture to proceed.
"In my opinion, come next year TikTok as we know it will not operate here in the U.S,&#8221; Mills added.
His comments come in the wake of the U.S. House of Representatives passing a bill that could significantly impact TikTok&#8217;s future in the U.S. The legislation proposes that TikTok must be sold within a year or face a ban from U.S. app stores.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">"Once this was added on to the bills last week, this [became] inevitable," says <a href="https://twitter.com/RaymondJames?ref_src=twsrc%5Etfw">@RaymondJames</a> policy analyst Ed Mills ahead of the Senate vote on the TikTok crackdown bill. "In my opinion, come next year TikTok as we know it will not operate here in the U.S.&quot; <a href="https://t.co/OyHmGjPgMK">pic.twitter.com/OyHmGjPgMK</a>
&mdash; Last Call (@LastCallCNBC) <a href="https://twitter.com/LastCallCNBC/status/1782558046289268920?ref_src=twsrc%5Etfw">April 22, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/news/24/04/38346954/trump-in-hot-seat-in-hush-money-case-prosecutors-seek-deep-dive-into-ex-presidents-alleged-misconduc?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump In Hot Seat In Hush-Money Case, Prosecutors Seek Deep Dive Into Ex-President&#8217;s Alleged Misconduct And Manipulation</a>
Why It Matters: The bill<a href="https://www.benzinga.com/news/24/04/38348328/tiktok-sale-or-ban-social-media-giants-future-hangs-in-balance-as-house-passes-controversial-bill">, part of a larger package </a>aimed at providing aid and bolstering national security measures in support of Ukraine, Israel, and Taiwan, has sparked controversy. <a href="https://www.benzinga.com/news/24/04/38353060/us-tiktok-ban-bill-would-trample-on-free-speech-rights-of-170m-americans-says-social-media-giant">TikTok has voiced concerns</a> about the potential infringement on the free speech rights of American users. The social media giant, owned by Chinese company ByteDance, has been given a year to sell its stake or face the ban.
Notable figures such as <a href="https://www.benzinga.com/news/24/04/38368326/edward-snowden-joins-elon-musk-in-opposing-tiktok-ban-censors-speech-police-book-burners">Edward Snowden and Elon Musk</a> have also expressed their opposition to the proposed TikTok ban. Snowden, a former computer security consultant for the National Security Agency, supported Musk&#8217;s stance, stating that censors, speech police, and book burners were symbols of an un-free society.
Read Next: <a href="https://www.benzinga.com/news/24/04/38348277/trump-vs-biden-nationwide-poll-shows-key-issue-decidedly-tilts-equation-in-favor-of-one-candidate?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump vs. Biden: Nationwide Poll Shows Key Issue Decidedly Tilts Equation In Favor Of One Candidate</a>
Photo by XanderSt on Shutterstock
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

Social Media

Analyst Predicts TikTok Shutdown In US By Next Year Ahead Of Senate Vote: 'Will Not Operate Here...'

Eurozone Services Purchasing Managers Index Preliminary For April 52.9 Vs. 51.8 Est.; 51.5 Prior

HCOB Eurozone Composite Purchasing Managers Index Preliminary For April 51.4 Vs. 50.8 Est.; 50.3 Prior

Eurozone Manufacturing Purchasing Managers Index Preliminary For April 45.6 Vs. 46.5 Est.; 46.1 Prior

Phoenix Motor Partners With Cennatic For Commercial EV Battery Solutions

Cohen &amp; Steers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNS#NYSE">CNS</a>) has offered and sold 1,007,057 shares of its common stock (the &quot;Shares&quot;) through its &quot;at-the-market&quot; equity offering program (the &quot;ATM Program&quot;). The Shares were offered and sold through BofA Securities, as sales agent, at an average price per share of $69.60. The expected net proceeds to Cohen &amp; Steers, after deducting commissions and estimated offering expenses, are approximately $68.4 million.

Reported Earlier, Cohen & Steers Raises $70M In Gross Proceeds From At-The-Market Equity Offering

A popular asset allocation strategy promoted by hedge funds, including&nbsp;Bridgewater Associates&#8216;&nbsp;<a target="_blank" href="https://www.benzinga.com/topic/ray-dalio" rel="noreferrer noopener">Ray Dalio</a>, is reportedly facing investor redemptions after underperforming promises.
What Happened:&nbsp;Bridgewater and other hedge funds promised superior returns with their &#8220;risk-parity portfolios,&#8221; but after half a decade of subpar performance, investors are pulling their money out, Bloomberg&nbsp;<a target="_blank" href="https://news.bloomberglaw.com/capital-markets/ray-dalios-famous-trade-is-sputtering-and-investors-are-bailing" rel="noreferrer noopener">reported</a>.&nbsp;
Large investors, including public pension funds in New Mexico, Oregon, and Ohio, have withdrawn their investments, leading to a $70 billion decline in these funds from their peak three years ago. This comes despite reassurances from hedge funds that things could improve in the next decade.
Risk parity was successful only during the Great Financial Crisis of 2008-09 and &#8220;that was really its heyday,&#8221; said Eileen Neill, as per the report, whose firm advises New Mexico&#8217;s $17 billion worth of public employee pension.
Since 2019, risk-parity funds have consistently underperformed the standard 60/40 global stock-bond mix, according to a broad industry index, as per the report. This lackluster performance has led to a significant investor exodus, with Verus estimates compiled from eVestment data showing a drop in risk-parity fund assets from a peak of $160 billion in 2021 to roughly $90 billion by the end of 2023.
What Is Risk-Parity?&nbsp;A&nbsp;<a target="_blank" href="https://www.benzinga.com/news/22/09/29068486/2022-made-sure-even-risk-parity-strategies-dont-work-this-etf-lost-over-28-this-year" rel="noreferrer noopener">risk-parity portfolio</a>, according to a University of Massachusetts Amherst paper, &#8220;defines a well-diversified portfolio as one where all asset classes have the same marginal contribution to the total risk of the portfolio.&#8221; This approach prioritizes risk management over chasing high returns and involves portfolio rebalancing and leverage.
Unlike traditional 60/40 stock-to-bond portfolios, risk-parity focuses on risk distribution rather than dollar amounts invested in each asset class.
The risk-parity portfolio was first launched in 1996 to manage Dalio&#8217;s trust assets, as per Bloomberg, and was lauded as a way to &#8220;use deep economic research to craft the best possible portfolio, instead of trying to call the next big thing.&#8221;
Instead of taking on high risk in a bid to chase superior returns, the approach propounded diversification across an array of assets such as commodities and bonds, with each as an equal driver of the portfolio&#8217;s volatility.
See Also:<a target="_blank" href="https://www.benzinga.com/yield-investments" rel="noreferrer noopener">&nbsp;Best High-Yield Investments To Earn</a>
Defenders Of The Strategy:&nbsp;Proponents of the strategy argue that exiting now, with stocks at record highs, is a &#8220;classic investor error.&#8221; Bridgewater claims its &#8220;All Weather&#8221; fund that targets 10% volatility may be underperforming currently, but believes risk-parity remains superior for long-term investing, especially with potential stagnation in stock gains.
The &#8220;All Weather&#8221; iteration fell 22% in 2022, with&nbsp;Michael Markov&nbsp;of Markov Processes<a target="_blank" href="https://www.benzinga.com/news/22/09/29068486/2022-made-sure-even-risk-parity-strategies-dont-work-this-etf-lost-over-28-this-year" rel="noreferrer noopener">&nbsp;blaming the underperformance</a>&nbsp;on it being less reactive to short-term market swings and correlation changes.
Risk-parity funds also face stiff competition from private credit funds and top hedge funds with consistent returns. 
Michael Shackelford, chief investment officer at the Public Employees Retirement Association of New Mexico, reportedly said, &#8220;If I'm going to have 6% or 8% of my portfolio in something else, I'd rather that something else be a bucket of really good performing hedge funds.&#8221;
Investors should focus on future performance, argued&nbsp;Jordan Brooks&nbsp;of&nbsp;AQR Capital Management, whose firm manages $13.7 billion in risk-parity investments. &#8220;It's investors' job at the end of the day not to look backward but forward to what's the best portfolio to navigate the next decade,&#8221; he said.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that mirrors the S&amp;P 500 Index, ended Monday&#8217;s session up 0.92% at $499.72, according to <a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro</a> data. The RPAR Risk Parity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RPAR#NYSE">RPAR</a>) closed the previous session 0.16% lower at $18.63 and is down over 5% over the past year.
Read Next: <a href="https://www.benzinga.com/news/24/01/36647975/2024-win-for-president-joe-biden-or-donald-trump-would-be-threatening-for-markets-ray-dalio-says">2024 Win For President Joe Biden Or Donald Trump Would Be &#8216;Threatening&#8217; For Markets, Ray Dalio Says</a>

Hedge Funds

Trading Ideas

RPAR

Ray Dalio's Way Loses Shine As Investors Yank Out Billions From Risk-Parity Funds After Disappointing Returns: But Is It A 'Classic Investment Error?'

Germany Services Purchasing Managers Index Preliminary For April 53.3 Vs. 50.6 Est.; 50.1 Prior

Germany Manufacturing Purchasing Managers Index Preliminary For April 42.2 Vs. 42.8 Est.; 41.9 Prior

Sasol's Nine Months Ended March 31, 2024 Mining Productivity +4% YoY, Gas Production +8% YoY, SO Production Volumes +3% YoY, And Total Chemicals Sales Volumes + 4% YoY

Honda Motor Europe Renews And Expands IT Partnership with Kyndryl Via Multiyear Managed Infrastructure Services Agreement

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
If you&rsquo;re looking for consumer stocks to avoid, look no further than the ProShares Online Retail ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/onln-stock-quote/">ONLN</a>).



As its name implies, the ETF <a href="https://www.proshares.com/our-etfs/strategic/onln">tracks the performance</a> of the ProShares Online Retail Index, a collection of retailers that sell their products online or through other non-brick-and-mortar channels.&nbsp;&nbsp;



In 2023, the ETF generated a total return of 27.4%, 120 basis points better than the SPDR S&amp;P 500 ETF Trust (NYSEARCA:<a href="https://investorplace.com/stock-quotes/spy-stock-quote/">SPY</a>). Before you purchase some shares of ONLN, consider that over the past five years, it&rsquo;s trailed the S&amp;P 500 ETF by 12.22% annually. ONLN is as volatile as it comes.&nbsp;



ONLN has just 19 holdings. Many of the names are popular with retail investors. However, it&rsquo;s a bet on Amazon (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>), which accounts for 24.1% of the fund&rsquo;s net assets.&nbsp;



Two of the three holdings I&rsquo;m recommending investors avoid had considerable gains in 2023. The other did not. All of them are consumer stocks to avoid in 2024.&nbsp;



<h2>Consumer Stocks to Avoid: Wayfair (W)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/wayfair1600-300x169.jpg" alt="The Wayfair (W) logo on the screen of a mobile phone with a purple background"><div>Source: rafapress / Shutterstock.com</div></div>


The Boston-based online furniture and home goods retailer had a good year in 2023. Its shares were up 88%.. However, since it went public in October 2014 at <a href="https://investor.wayfair.com/news/news-details/2014/Wayfair-Announces-Closing-of-Initial-Public-Offering-and-Full-Exercise-of-Underwriters-Option-to-Purchase-Additional-Shares/default.aspx">$29 a share</a>, investors who bought in the IPO and still hold have generated a compound annual growth rate of 7.2%, 265 basis points less than the S&amp;P 500.&nbsp;



Since it finished 2023, it&rsquo;s already lost nearly 11%. You couldn&rsquo;t ask for a more volatile stock to own.&nbsp;



I&rsquo;ve never liked Wayfair (NYSE:<a href="https://investorplace.com/stock-quotes/w-stock-quote/">W</a>) because it sells all kinds of stuff that nobody needs that they can&rsquo;t get in their hometowns. But worse than that, it doesn&rsquo;t know how to make money.&nbsp;



And just when I thought it couldn&rsquo;t get any worse, CEO and co-founder Niraj Shah <a href="https://www.cnn.com/2023/12/21/business/wayfair-ceo-workers-hours/index.html">dumped on his employees</a> just days before Christmas. Bah, humbug.&nbsp;




&ldquo;Nicholas Bloom, a professor of economics, told CNN&rsquo;s Richard Quest in an interview Thursday [Dec. 21, 2023] that &lsquo;if Wayfair wants to run a business where people work 80 hours a week, he&rsquo;s going to have to put up their salaries by 50% to pay them for it,&rdquo; CNN Business reported.&nbsp;





&ldquo;&lsquo;I don&rsquo;t see this as being successful for the typical employee,&rsquo; Bloom said, noting that the jobs market is strong and employees have options.&rdquo;




According to S&amp;P Global Market Intelligence, since Wayfair went public in 2014, on only one occasion did it generate a GAAP profit, which was $185 million in 2020. Overall, it&rsquo;s lost $4.3 billion in the past decade through Sept. 30, 2023, on many billions in revenue.&nbsp;&nbsp;



With all the stocks investors can put their money into, I don&rsquo;t get why anyone would touch Wayfair.



<h2>Chewy (CHWY)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/09/chwy1600c_chewy-300x169.jpg" alt="The Chewy logo on a banner at the New York Stock Exchange."><div>Source: Chie Inoue / Shutterstock.com</div></div>


Of the three stocks on my list, Chewy (NYSE:<a href="https://investorplace.com/stock-quotes/chwy-stock-quote/">CHWY</a>) represents the most significant position in ONLN with a 4.12% weighting. Its shares lost 36% in 2023.&nbsp;



Chewy is another pandemic stock that benefited from a surge in companion animals and the purchasing that goes along with pet ownership. It traded upwards of $120 in February 2021. It hit an all-time low of $16.53 in October.&nbsp;



Investors have since driven the share price higher in the final two months of the year when everything moved higher, and the U.S. market delivered a Q4 2023 <a href="https://www.morningstar.com/markets/15-charts-surprise-everything-rally-2023?utm_source=pocket_reader">return of 12.08%</a>.&nbsp;



Chewy is another stock that needs help making money.



In the five years it&rsquo;s been a public company &ndash; its IPO was June 13, 2019, at <a href="https://investor.chewy.com/news-and-events/news/news-details/2019/Chewy-Announces-Pricing-of-Initial-Public-Offering/default.aspx">$22 a share</a> &ndash; the online retailer has a cumulative loss of $637.4 million, according to S&amp;P Global Market Intelligence.&nbsp;



In the 39 weeks ended Oct. 29, 2023, <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001766502%20/3fae8864-fb1f-490b-a53b-b04bab85c9ff.pdf">it earned $5.3 million</a> on $8.3 billion in revenue. It&rsquo;s not a trainwreck like Wayfair, but its net income is still down significantly from the same period in 2022.&nbsp;



At least in Chewy&rsquo;s case, it generates positive cash from its operations, which is essential if it wants to stick around.



<h2>Carvana (CVNA)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/08/cvna1600-1-300x169.png" alt="Gaithersburg MD June 26, 2021 Carvana (CVNA) Auto Dealership"><div>Source: Eric Glenn / Shutterstock.com</div></div>


Carvana (NYSE:<a href="https://investorplace.com/stock-quotes/cvna-stock-quote/">CVNA</a>) rose from the dead in 2023, <a href="https://www.axios.com/2024/01/03/2023-stock-market-winners">gaining 1,117% last year</a> and making some speculators very wealthy. However, the real money was made by those who bought in the March 2020 correction below $30 and sold in August 2021 above $360. I doubt there are many of those folks still around.



Investors in 2024 will have to decide whether its gains last year were nothing more than a dead cat bounce or something sustainable. I&rsquo;m going with the former.&nbsp;



Two things happened in 2023 that helped juice its share price.&nbsp;



First, the online buyer and seller of used vehicles restructured about $5.5 billion of its unsecured debt &ndash; its maturities stretched from 2025 through 2030 &ndash; slashing more than <a href="https://www.bnnbloomberg.ca/carvana-completes-restructuring-to-slash-1-3-billion-of-debt-1.1966399">$1.3 billion of its debt</a> and extending maturities out three years to between 2028 and 2031. The move saved $455 million in annual interest expenses in 2024 and 2025.&nbsp;



However, as a result of the restructuring, S&amp;P Global Ratings <a href="https://disclosure.spglobal.com/ratings/pt/regulatory/article/-/view/type/HTML/id/3050101">downgraded Carvana&rsquo;s Issuer credit rating</a> to &ldquo;D&rdquo; from &ldquo;CC&rdquo; and its senior unsecured debt to &ldquo;D&rdquo; from &ldquo;C.&rdquo;&nbsp;&nbsp;



That means that Carvana bought itself some time, but that&rsquo;s about the extent of it.&nbsp;



The second benefit was a <a href="https://investors.carvana.com/~/media/Files/C/Carvana-IR/documents/cvna-earning-release-q3-2023.pdf">70% jump in gross profit per unit</a> in the third quarter to nearly $6,000. As a result, its Q3 2023 <a href="https://otp.tools.investis.com/clients/us/carvana/SEC/sec-show.aspx?FilingId=17027238&amp;Cik=0001690820&amp;Type=PDF&amp;hasPdf=1">gross profit was $482 million</a>, 34% higher than a year earlier, on 18% less revenue.&nbsp;



That&rsquo;s some trick. However, most of its pre-tax income in the first nine months of 2023 ($377 million vs. a loss of $1.45 billion a year earlier) is from drastic cuts to its selling, general, and administrative expenses (36% reduction).



Carvana appears to be smoke and mirrors. I&rsquo;d avoid it.&nbsp;



On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/05/secret-income-blueprint-of-the-one-percent/?cid=MKT730394&amp;eid=MKT771243">The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
The post <a href="https://investorplace.com/2024/01/3-consumer-stocks-to-sell-in-january-before-they-crash-and-burn/">3 Consumer Stocks to Sell in January Before They Crash and Burn</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Consumer Stocks to Sell in January Before They Crash and Burn

U.S. Resilience Suggests The Fed Will Wait Until The Second Quarter Before Cutting Rates

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
While Wall Street may be celebrating the dodging of the recession bullet last year, it doesn&rsquo;t mean that it&rsquo;s the only one in the chamber, meaning that ETFs to buy for diversification remains a viable idea. That&rsquo;s not to say that individual stock picking shouldn&rsquo;t be attempted. However, with uncertainty still lurking in the clouds, targeting compelling exchange-traded funds offers much-needed confidence.



Let&rsquo;s look at (arguably) the primary reason why people consider ETFs to buy: an instant portfolio spread. By buying one share of a typical ETF, you enjoy immediate diversification by owning exposure to a basket of securities. Not sure if Nvidia (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>) will sustain its stratospheric run from last year or if another enterprise will take its mantle? Go buy a computer-chip-centric ETF.



Another factor that helps the cause for ETFs to buy for diversification centers on reduced fees. Relative to actively managed mutual funds, ETFs can generally offer lower fees as they passively track a particular index. Basically, this means more of your market returns stays in your pocket &ndash; where they belong.



On that note, below are intriguing ETFs to buy.



<h2>iShares US Aerospace &amp; Defense ETF (ITA)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/defense1600b-300x169.jpg" alt="A photograph of two jet fighters flying above clouds. defense stocks"><div>Source: Shutterstock</div></div>


While the defense industry carries some controversy for obvious reasons, the sector has always been important. Given the volatility of the current geopolitical landscape, the iShares US Aerospace &amp; Defense ETF (BATS:<a href="https://investorplace.com/stock-quotes/ita-stock-quote/">ITA</a>) seems particularly pertinent now. <a href="https://www.ishares.com/us/library/stream-document?stream=reg&amp;product=I-DJAERO&amp;shareClass=NA&amp;documentId=1280415%7E1280114%7E926348%7E1255433%7E1192007&amp;iframeUrlOverride=%2Fus%2Fliterature%2Fprospectus%2Fp-ishares-us-aerospace-and-defense-etf-3-31.pdf">According to its prospectus</a>, the ITA tracks the investment results of the Dow Jones U.S. Select Aerospace &amp; Defense Index.



Over the past 52 weeks, this fund has been relatively quiet, moving up a bit over 9%. However, since Oct. 5, the ITA gained nearly 19% of its market value. That&rsquo;s not surprising. Yes, it&rsquo;s true that CNN noted that the &ldquo;world is a mess and Wall Street isn&rsquo;t paying attention&rdquo; in its article <a href="https://www.cnn.com/2024/01/23/investing/premarket-stocks-trading/index.html">headline</a>. But based on the performance of the defense-centric ETF, it appears that the market is waking up.



Looking at the core holdings, the ITA ranks among the most relevant ETFs to buy for diversification. Aerospace giant Boeing (NYSE:<a href="https://investorplace.com/cryptocurrency/ba/">BA</a>) holds pole position. But right behind are RTX (NYSE:<a href="https://investorplace.com/stock-quotes/rtx-stock-quote/">RTX</a>) and Lockheed Martin (NYSE:<a href="https://investorplace.com/stock-quotes/lmt-stock-quote/">LMT</a>), two weapons manufacturers that know a thing or two about silencing aggression. It&rsquo;s an ugly world so you should think soberly about ITA.



<h2>BlackRock Floating Rate Loan ETF (BRLN)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/etf-1600-1-300x169.png" alt="Piggy banks with coins in them that spell out ETF."><div>Source: Maxx-Studio / Shutterstock</div></div>


It&rsquo;s not 100% sure, but 2024 could see a shift in monetary policy. In December, Federal Reserve Chair Jerome Powell hinted at the <a href="https://www.foxbusiness.com/economy/will-federal-reserve-cut-interest-rates-2024#">possibility of interest rate cuts in 2024</a>. If so, investors seeking ETFs to buy for diversification ought to think about BlackRock Floating Rate Loan ETF (BATS:<a href="https://investorplace.com/stock-quotes/brln-stock-quote/">BRLN</a>). <a href="https://www.blackrock.com/americas-offshore/en/literature/prospectus/pro-frl-etf.pdf">Per its prospectus</a>, the BRLN fund seeks to <a href="https://money.usnews.com/investing/articles/best-high-dividend-etfs">provide high current income</a> and secondarily attempts to facilitate long-term capital appreciation.



Turning to <a href="https://money.usnews.com/investing/articles/best-high-dividend-etfs">U.S. News &amp; World Report</a>, the &ldquo;portfolio managers who run BRLN invest in a productive but little-known asset class called floating-rate bank loans. Floating-rate loans don&rsquo;t have a fixed interest rate that borrowers pay for the life of the loan. Instead, floating-rate loans fluctuate, both up and down, based on a predetermined interest rate barometer, such as the three-month Libor rate.&rdquo;



Why might BRLN be one of the ETFs to buy? Simply put, if the Fed decides to lower interest rates, the government (and its bonds) won&rsquo;t compete with the free market regarding passive income. Because let&rsquo;s face it &ndash; why put your money at risk for high yield when you can buy Uncle Sam&rsquo;s debt?



A return to normalcy may translate to upside for BRLN.



<h2>ETFMG Prime Cyber Security ETF (HACK)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/cybersecurity1600b-300x169.jpg" alt="a business man pressing a button with an open lock on it that's connected to a symbol of a cloud and various security related icons. cheap cybersecurity stocks"><div>Source: Shutterstock</div></div>


Seemingly everyone loves talking about generative artificial intelligence. And if it&rsquo;s not AI, then it&rsquo;s quantum computing. If not that, then it&rsquo;s solid-state batteries for electric vehicles or some esoteric blockchain project. Technology can be wonderful but it also requires protection. That&rsquo;s where the ETFMG Prime Cyber Security ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/hack-stock-quote/">HACK</a>) comes into play. If you&rsquo;re big on logic, HACK makes a great case for ETFs to buy for diversification.



Per its <a href="https://money.usnews.com/funds/etfs/technology/etfmg-prime-cyber-security-etf/hack">prospectus</a>, HACK seeks to replicate the investment results of the Prime Cyber Defense Index. It does so by targeting a broad range of <a href="https://investorplace.com/industries/technology/cybersecurity/">cybersecurity stocks</a>. Specifically, HACK&rsquo;s top holding is Zscaler (NASDAQ:<a href="https://investorplace.com/stock-quotes/zs-stock-quote/">ZS</a>) with a 4.7% weighting, with Fortinet (NASDAQ:<a href="https://investorplace.com/stock-quotes/ftnt-stock-quote/">FTNT</a>) close behind at 4.67%.



To be honest, it can be difficult to find individual ideas in this space. For example, FTNT is an analysts&rsquo; <a href="https://www.tipranks.com/stocks/ftnt/forecast">consensus hold</a>. ZS is a buy but with a target of $238.06, which currently <a href="https://www.tipranks.com/stocks/zs/forecast">implies downside risk</a>. With HACK, its basket of securities enables you to bet on the narrative.



Inarguably, it&rsquo;s a strong narrative considering that we&rsquo;ve seen how cyberattacks can disrupt blue-chip businesses. Therefore, HACK is one of the ETFs to buy.



<h2>iShares Semiconductor ETF (SOXX)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/semiconductor1600c-300x169.jpg" alt="AI. Circuit board. Technology background. Central Computer Processors CPU concept. Motherboard digital chip. Tech science background. Integrated communication processor. 3D illustration representing semiconductor stocks. semiconductor stocks to buy and hold"><div>Source: Shutterstock</div></div>


Where will Nvidia go this year and should I choose another semiconductor idea instead? It&rsquo;s an agonizing question because there&rsquo;s an argument to be made that hot streaks like the one NVDA has enjoyed don&rsquo;t last forever. If you&rsquo;re in this boat, why not go with the iShares Semiconductor ETF (NASDAQ:<a href="https://investorplace.com/stock-quotes/soxx-stock-quote/">SOXX</a>)? It&rsquo;s one of the top ETFs to buy for diversification and it has NVDA in its holdings, alongside other names.



Per the underlying <a href="https://money.usnews.com/funds/etfs/technology/ishares-semiconductor-etf/soxx">prospectus</a>, SOXX attempts to track the investment results of the NYSE Semiconductor Index. Its top holding is Broadcom (NASDAQ:<a href="https://investorplace.com/stock-quotes/avgo-stock-quote/">AVGO</a>) with an 8.88% weighting. Coming in a very close second is Advanced Micro Devices (NASDAQ:<a href="https://investorplace.com/stock-quotes/amd-stock-quote/">AMD</a>) at 8.28%. And as I stated before, Nvidia is also on this list, ranking in third place with a 7.62% weighting.



Another factor that should help sway the decision-making process is the total addressable market. According to Bloomberg, the generative AI space <a href="https://www.qualcomm.com/news/onq/2023/11/the-generative-ai-economy-is-worth-up-to-7-trillion-dollars#:~:text=Generative%20AI%20is%20driving%20economic%20growth&amp;text=On%20the%20low%20end%2C%20Statista,to%20%24207%20billion%20in%202030.">could become a $1.3 trillion ecosystem by 2032</a>. I don&rsquo;t think Nvidia is going to hog the entire spotlight. Therefore, the SOXX makes plenty of sense. Oh yeah &ndash; it&rsquo;s cheap with a 0.35% expense ratio.



<h2>Sprott Uranium Miners ETF (URNM)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/uranium1600-300x169.jpg" alt="periodic table concept with black cubes. uranium element is glowing. Uranium stocks"><div>Source: Shutterstock</div></div>


When it comes to must-watch ETFs to buy for diversification, I&rsquo;d be hard pressed not to mention Sprott Uranium Miners ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/urnm-stock-quote/">URNM</a>). In the past month, URNM shot up nearly 10%. And in the trailing 52 weeks, the fund returned stakeholders almost 51% of market value. Even better, the broader fundamentals &ndash; that of supply shortage &ndash; makes URNM credible as a long-term opportunity.



Fundamentally, as I explained in a Barchart article regarding Cameco (NYSE:<a href="https://investorplace.com/stock-quotes/ccj-stock-quote/">CCJ</a>), Kazatomprom &ndash; Kazahkstan&rsquo;s state uranium company &ndash; disclosed that it <a href="https://www.barchart.com/story/news/23539978/ignore-the-noise-cameco-ccj-is-a-long-term-buy">incurred shortages of key materials</a> such as sulfuric acid. In turn, the energy specialist finds it difficult to produce as much uranium oxide concentrate (also known as yellowcake) as before. Subsequently, that has led to a huge burst of demand as nuclear players scramble for supply.



In my personal holdings, I see tremendous speculative value in individual uranium stocks: I discussed one <a href="https://upperdeckoptions.com/2024/01/23/nuscale-powers-up-tiny-reactors-big-potential-in-an-energy-thirsty-world/">compelling company in fairly great detail here</a>. However, many of these entities are <a href="https://investorplace.com/stock-types/penny-stocks/">penny stocks</a>, which of course can be extraordinarily risky. To mitigate the dangers, Sprott Uranium offers a diverse range of offerings, including the aforementioned Kazatomprom.



Still, do keep in mind the <a href="https://money.usnews.com/funds/etfs/natural-resources/sprott-uranium-miners-etf/urnm">expense ratio of 0.83%</a>, which is steep.



<h2>SPDR Gold Shares (GLD)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/09/costco-gold-bars1600-300x169.png" alt="Gold bars and Financial concept, studio shots. Costco's gold bars, cost stock"><div>Source: Misunseo / Shutterstock.com</div></div>


We all love gold. Even if you&rsquo;re not big on jewelry or Swiss luxury watches, you almost surely own a smartphone. And because of that, <a href="https://www.americanbullion.com/how-much-gold-is-in-a-cell-phone/#:~:text=There%20is%20actual%20gold%20in,around%200.034%20grams%20of%20gold.">you&rsquo;re technically a gold owner</a>. Yeah, we&rsquo;re talking about a very small amount &ndash; about 0.034 grams worth. Still, the metal&rsquo;s excellent conductivity and corrosion resistance make it an ideal element. And it also offers an intriguing investment opportunity via the SPDR Gold Shares (NYSEARCA:<a href="https://investorplace.com/stock-quotes/gld-stock-quote/">GLD</a>).



Looking at the <a href="https://money.usnews.com/funds/etfs/commodities-focused/spdr-gold-shares/gld">prospectus</a>, the GLD is an investment that seeks to reflect the performance of the gold spot price. The trust holds gold bars and occasionally issues baskets or large blocks of shares in the trust (typically 100,000 shares) in exchange for deposits of gold. If you&rsquo;ve ever held physical bullion, you know these things are incredibly dense. So, the GLD offers you the opportunity to hold gold without going all doomsday bunker.



But why would you want to buy gold? Isn&rsquo;t it a bovine special? Well, if the Fed goes through with interest rate cuts, then the dollar will erode over time. Gold should protect you, making the GLD one of the ETFs to buy for diversification.



<h2>ProShares Online Retail ETF (ONLN)</h2>


<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/ecommerce1600a-min-300x169.jpg" alt="ecommerce company nogin, NOGN stock"><div>Source: Shutterstock</div></div>


If I may be completely upfront, I was a little hesitant in bringing up ProShares Online Retail ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/onln-stock-quote/">ONLN</a>). That&rsquo;s why I stuck it last on this list. However, it nevertheless is on this list because we&rsquo;re talking about ETFs to buy for diversification. I don&rsquo;t think I can achieve such diversification without mentioning diverse investment ideas so here we are.



From its <a href="https://money.usnews.com/funds/etfs/consumer-cyclical/proshares-online-retail-etf/onln">prospectus</a>, the ONLN fund seeks to track the performance of the ProShares Online Retail Index. Here&rsquo;s the thinking behind the narrative. Should the Fed lower interest rates, it would remove a major obstacle in consumer spending habits. Further, what we can extract from the <a href="https://investorplace.com/2023/12/buy-now-profit-later-3-stocks-capitalizing-on-bnpl-trend/">rise in buy-now, pay-later (BNPL) platforms</a> is that people will open their wallets irrespective of economic pain; however, the mechanism behind their purchases changes.



If that&rsquo;s the case, reduced borrowing costs should do the companies under the ONLN umbrella &ndash; enterprises like Amazon (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>) and Beyond (NYSE:<a href="https://investorplace.com/stock-quotes/byon-stock-quote/">BYON</a>) &ndash; much good. Further, the fund also includes Chinese e-commerce picks for, you guessed it, diversification. Therefore, it makes a strong case for ETFs to buy.



On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
The post <a href="https://investorplace.com/2024/01/7-must-buy-etfs-for-top-tier-portfolio-diversification/">7 Must-Buy ETFs for Top-Tier Portfolio Diversification</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

7 Must-Buy ETFs for Top-Tier Portfolio Diversification

Kicking Around Preliminary Earnings Trends In The Consumer Space

Barbell Equity Exposure In '24

Do Retail Sales Show Consumers Cut Back?

Walmart And Total Ecommerce Sales In The U.S.

ProShares Online Retail ETF declares quarterly distribution of $0.0453

BTIG is bullish on Amazon, saying the stage is set for a move above $200

Resurging Corporate Profits Show Inflationary Pressures Are Reheating After Lull: Corporate Profits By Major Industry