Market Overview

What ETF Is Winning From China's Small-Cap Frenzy?

What ETF Is Winning From China's Small-Cap Frenzy?

Last week, the SPDR S&P 500 ETF (NYSE: SPY) managed to notch another period of tepid gains as stocks slowly grind their way higher. This market bellwether is now up just over 4 percent in 2015 and is continuing to exhibit quiet determination. 

The price action in large-cap stocks was indicative of the breakout bulls have been looking for last week. However, weak overall volume may weigh on the minds of traders during Memorial Day weekend. 

The muted trading volume may represent a lack of institutional conviction in the latest move and could warrant caution with the CBOE VIX Volatility Index falling below 12 for the first time this year.

The following ETFs represent a sample of the best- and worst-performing funds over the last five trading sessions.

Related Link: Billionaire-Tracking ETF Just Bulked Up On Health Care

BEST: China A-Shares

One area of the market that has shown no signs of cooling off are China small-cap stocks. The Deutsche X-trackers Harvest CSI 500 China-A Shares Small Cap ETF (NYSE: ASHS) gained over 13 percent last week and hit a new all-time high on Friday.    

ASHS tracks 500 small cap A-share stocks that are traded on the Shanghai and Shenzen exchanges in China. This market has been red hot this year with ASHS gaining more than 85 percent in 2015. 

Nevertheless, some experts are worried about the prospect of a bubble forming in China’s stock market as initial public offerings and equity valuations repeatedly soar to new heights. 

WORST: Coffee Futures

Coffee futures prices accelerated their pace of descent last week, which sent the iPath Bloomberg Coffee Subindex Total Return ETN (NYSE: JO) to new year-to-date lows.

JO provides un-leveraged exposure to coffee futures contracts and fell nearly 9 percent over the last five trading sessions.

This exchange-traded note is now down more than 28 percent over the last year as the outlook for improved crop production and global supply weigh on prices.  JO has over $87 million in total assets and charges an expense ratio 0.75 percent.   

This commodity has been known to trade with fickle aspirations due to weather and other cyclical forces impacting futures markets.

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