These exchange-traded funds (ETFs) have experienced varying degrees of decline in their performance over the first 6 months of the year. These ETFs cover a range of sectors, including alternative energy, market volatility, regional banking, natural gas, and the cannabis industry.

Noble Absolute Return ETF (NOPE) is an exchange-traded fund that has experienced a decline of 66.74%. It is designed to provide investors with absolute returns, aiming to generate positive returns regardless of market conditions.

KraneShares Global Carbon Offset Strategy ETF (KSET) has seen a decrease of 63.83%. This ETF focuses on companies involved in the global carbon credit market, aiming to capture the potential growth of carbon offsets and the transition to a low-carbon economy.

ProShares VIX Short-Term Futures ETF (VIXY) has declined by 56.13%. This ETF aims to provide investors with exposure to short-term VIX futures contracts, which are designed to track the volatility index of the S&P 500. It is commonly used as a hedging instrument against market volatility.

iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) has seen a decline of 55.74%. Similar to VIXY, VXX is an exchange-traded note that offers exposure to short-term VIX futures contracts. It is designed to provide investors with a way to hedge against potential market downturns.

Convexityshares 1x Spikes Futures ETF (SPKX) has experienced a decrease of 55.08%. This ETF seeks to track the performance of the SPY Index, which reflects the implied volatility of the S&P 500 Index. It aims to provide investors with inverse exposure to the VIX futures market.

Simplify Tail Risk Strategy ETF (CYA) has declined by 48.83%. This ETF focuses on managing tail risk, aiming to protect investors from significant market downturns. It uses options and other strategies to provide exposure to a broad range of asset classes while seeking to limit downside risk.

United States Natural Gas Fund LP (UNG) has seen a decrease of 47.38%. UNG is designed to track the performance of natural gas futures contracts. It offers investors exposure to the price movements of natural gas and can be used to speculate on or hedge against natural gas price fluctuations.

Global X Cannabis ETF (POTX) has experienced a decline of 40.85%. This ETF focuses on companies involved in the cannabis industry, seeking to provide investors with exposure to the global cannabis market and benefit from its potential growth.

Breakwave Dry Bulk Shipping ETF (BDRY) has declined by 39.61%. BDRY is designed to provide investors with exposure to the dry bulk shipping industry. It tracks a portfolio of near-dated freight futures contracts and aims to capture the performance of the dry bulk shipping market.

AXS Cannabis ETF (THCX) has seen a decrease of 33.98%. THCX focuses on companies involved in the cannabis industry, aiming to provide investors with exposure to the global cannabis market and benefit from its potential growth.

United States 12 Month Natural Gas Fund LP (UNL) has experienced a decline of 33.12%. UNL seeks to track the performance of natural gas futures contracts, with a focus on contracts that have a constant maturity of 12 months. It aims to provide investors with exposure to longer-term movements in natural gas prices.

ProShares VIX Mid-Term Futures ETF (VIXM) has declined by 32.56%. Similar to VIXY and VXX, VIXM offers exposure to VIX futures contracts but with a mid-term focus. It is designed to provide investors with a way to hedge against medium-term market volatility.

iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) has seen a decrease of 31.33%. VXZ, like VIXM, is an exchange-traded note that provides exposure to VIX futures contracts with a mid-term focus. It aims to offer investors a means to hedge against medium-term market volatility.

ABRDN Physical Palladium Shares ETF (PALL) has experienced a decline of 31.09%. PALL is designed to track the spot price of palladium, providing investors with exposure to the physical metal. It aims to reflect the performance of the palladium market.

SPDR S&P Regional Banking ETF (KRE) has seen a decrease of 29.25%. KRE focuses on regional banking companies, providing investors with exposure to the performance of the regional banking sector in the United States. It seeks to track the S&P Regional Banks Select Industry Index.

ETFMG Alternative Harvest ETF (MJ) has declined by 29.12%. MJ focuses on companies involved in the legal cannabis industry. It aims to provide investors with exposure to the global cannabis market and benefit from its potential growth.

AdvisorShares Pure Cannabis ETF (YOLO) has experienced a decrease of 28.06%. YOLO focuses on companies operating in the legal cannabis industry, aiming to provide investors with exposure to the cannabis market and capitalize on its potential growth.

iShares US Regional Banks ETF (IAT) has seen a decrease of 27.90%. IAT focuses on companies in the regional banking sector in the United States, seeking to track the performance of the Dow Jones U.S. Select Regional Banks Index.

Amplify Seymour Cannabis ETF (CNBS) has declined by 27.36%. CNBS focuses on companies involved in the cannabis industry, aiming to provide investors with exposure to the global cannabis market and benefit from its potential growth.

Advisorshares Poseidon Dynamic Cannabis ETF (PSDN) has experienced a decrease of 26.62%. PSDN focuses on companies operating in the legal cannabis industry. It aims to provide investors with exposure to the cannabis market and generate long-term capital appreciation.

Fidelity Investments, along with Invesco, VanEck, 21Shares, and WisdomTree, has filed a fresh set of applications for a spot Bitcoin exchange-traded fund (ETF) after the initial filings were deemed insufficient by the U.S. Securities and Exchange Commission (SEC). These companies are among eight firms seeking to launch the first round of spot Bitcoin ETFs in the United States. In their new filings, they have included additional details, and all of them have indicated that Coinbase Global Inc. will provide market surveillance for their ETFs, which was not mentioned in the previous filings.

Crypto market surveillance is seen as a crucial aspect for gaining SEC approval for a spot Bitcoin ETF. Effective surveillance can help reduce fraud and market manipulation, which were major reasons behind the rejection of previous spot Bitcoin ETF applications.

Coinbase is also expected to provide various services for other proposed ETF issuers, including BlackRock, Valkyrie, and Bitwise. These services may include custody and other related functions. While 21Shares has mentioned Coinbase’s involvement in its filing, the other issuers have not confirmed Coinbase’s role.

The wave of spot Bitcoin ETF filings has generated excitement among digital asset enthusiasts, as it could potentially make crypto more accessible to everyday investors. The increased interest in ETFs has also contributed to a boost in token prices, with Bitcoin surpassing $30,000 in June and trading at its highest levels in about a year.

Coinbase’s involvement with the proposed ETFs could provide a revenue boost for the company at a time when the crypto-exchange industry is experiencing low trading volumes. Coinbase’s revenue in the previous year was less than half of what it achieved during the bullish market of 2021. Additionally, this news comes amid Coinbase’s legal battle with the SEC, which accused the company of operating an illegal exchange.

Following BlackRock’s filing for a spot Bitcoin ETF in mid-June, seven other firms have either filed or refiled for similar ETFs, reflecting market optimism that the SEC may change its stance on approving such funds. The SEC has already allowed ETFs tied to Bitcoin futures in 2021, signaling a partial shift in its approach.

Listed below are the five ETFs involved in Bitcoin with the most total assets at this time:

1. ARKW (ARK Next Generation Internet ETF)
   • Total Assets ($MM): $1,399.57
2. BITO (ProShares Bitcoin Strategy ETF)
   • Total Assets ($MM): $1,072.57
3. BITQ (Bitwise Crypto Industry Innovators ETF)
   • Total Assets ($MM): $85.03
4. XBTF (VanEck Bitcoin Strategy ETF)
   • Total Assets ($MM): $45.48
5. BTF (Valkyrie Bitcoin Strategy ETF)
   • Total Assets ($MM): $29.54

In the first quarter of 2023, investors withdrew $5.2 billion from U.S. sustainable funds, although the pace of withdrawals moderated compared to the previous quarter. This marked the third consecutive quarter of outflows, totaling nearly $12.4 billion over the past year. Global macroeconomic pressures, including an ongoing energy crisis and concerns of a recession, contributed to this retreat. In contrast, the overall U.S. fund universe saw net inflows of $17 billion during the same period, albeit lower than its typical quarterly haul.

Notably, actively managed sustainable funds broke a three-quarter streak of outflows and experienced modest inflows of $91 million. However, passive funds faced significant outflows of nearly $6.1 billion, disrupting the trend of supporting U.S. sustainable funds. The iShares ESG Aware MSCI USA ETF (ESGU), which was once a popular fund and the largest U.S. sustainable fund in 2022, lost over $5 billion during the week of March 20, 2023. This coincided with a change in BlackRock’s flagship target allocation ETF model portfolios, where the allocation to ESGU was reduced and replaced largely by iShares MSCI USA Quality Factor ETF (QUAL).

GMO Resource Transition GMOYX, launched on February 15, 2023, quickly gained traction and ranked third in terms of flows during the first quarter. This fund focuses on investing in natural-resources companies that are expected to benefit from the clean energy transition, excluding traditional oil and gas companies. BlackRock and Vanguard remained dominant in the top flows table, with four and two funds respectively, while the iShares ESG U.S. Aggregate Bond ETF (EAGG) consistently ranked among the top 10 funds for the past three quarters.

Below are listed the top five ESG ETFs by net flow:

1. iShares ESG Aware MSCI EM ETF (ESGE): Q1 net flow: $477 million
2. BlackRock Sustainable Advantage Large Cap Core (BIRIX): Q1 net flow: $475 million
3. GMO Resource Transition (GMOYX): Q1 net flow: $460 million
4. iShares ESG U.S. Aggregate Bond ETF (EAGG): Q1 net flow: $419 million
5. Calvert Equity (CSIEX): Q1 net flow: $419 million

Artificial Intelligence (AI) is a branch of computer science that aims to create machines or software that can display human-like intelligence. This means the ability to learn, reason, plan, perceive, or process natural language.

There are two main types of AI:

Narrow AI (or Weak AI): This is AI that is designed to perform a specific task, like voice recognition or recommending products online. Most of the AI we interact with today, like virtual assistants (Alexa, Siri), are examples of Narrow AI.

General AI (or Strong AI): This is a type of AI that has the potential to understand, learn, and apply knowledge in a broad array of tasks at a level equal to or beyond a human being. General AI would be able to perform any intellectual task that a human can do. As of my knowledge cutoff in September 2021, this type of AI exists more in theory and science fiction than in reality.

AI technologies have wide-ranging uses, from autonomous vehicles to medical diagnosis, from improving business processes to creating personalized customer experiences, and much more.

Key technologies and methodologies in AI include machine learning (where computers are programmed to learn from data without being explicitly programmed), natural language processing (the ability for computers to understand human languages), and neural networks (systems modelled on the human brain that can recognize patterns).

AI has the potential to bring about massive societal and economic changes, but it also presents challenges, such as ethical concerns around data privacy, job automation, and decision-making transparency. Here are some of the industries that should benefit greatly from AI.

Key technologies and methodologies in AI include machine learning (where computers are programmed to learn from data without being explicitly programmed), natural language processing (the ability for computers to understand human languages), and neural networks (systems modelled on the human brain that can recognize patterns).

AI has the potential to bring about massive societal and economic changes, but it also presents challenges, such as ethical concerns around data privacy, job automation, and decision-making transparency.

Healthcare: AI can assist in diagnosis, drug discovery, patient care, and personalized medicine. For example, AI algorithms can analyze medical images to detect diseases, and machine learning can help predict patient outcomes.

Manufacturing: AI can improve efficiency in manufacturing processes through predictive maintenance, real-time monitoring, quality inspection, and supply chain optimization.

Transportation and Logistics: Autonomous vehicles, route optimization, demand forecasting, and inventory management are areas where AI can play a major role.

Financial Services: AI can improve decision-making in areas like credit scoring, fraud detection, investment management, and customer service.

Retail: AI can personalize the shopping experience, optimize inventory, improve recommendations, and enhance customer service.

Education: AI can personalize learning, automate grading, provide tutoring, and enable more efficient administrative tasks.

Agriculture: AI can help in precision farming, predicting crop yields, monitoring soil health, and automating farming tasks.

Energy: AI can optimize energy use, predict system failures, and help in the transition to smart grids.

Entertainment and Media: AI can personalize content recommendations, automate video editing, and even generate content.

Telecommunications: AI can optimize network performance, automate customer service, and predict maintenance needs.

AI Focused ETFs
Global X Robotics & Artificial Intelligence ETF (BOTZ): This ETF tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index, which includes companies involved in the development and production of robots or AI.

ROBO Global Robotics and Automation Index ETF (ROBO): This ETF tracks the ROBO Global Robotics and Automation Index, including companies from around the world involved in a variety of robotics-related and automation-related activities.

iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): This ETF tracks an index composed of domestic and international stocks across multiple sectors involved in robotics and AI.

ARK Autonomous Technology & Robotics ETF (ARKQ): This actively managed ETF invests in companies that ARK Investment Management believes are leading in autonomous technology and robotics, including AI.

AI Powered Equity ETF (AIEQ): This is an actively managed ETF that uses AI to select U.S.-listed stocks.

Despite interest from investors and efforts by several fund issuers, the U.S. Securities and Exchange Commission (SEC) has been cautious about approving a Spot Price Bitcoin ETF, mainly due to concerns about market manipulation in the largely unregulated cryptocurrency market.

Recent remarks made by VanEck’s CEO Jan Van Eck indicate that even though Bitcoin-futures funds have been trading since 2021, a physically backed Bitcoin ETF (one that holds actual Bitcoin rather than future contracts) seems unlikely in the near future. His statements further underline the regulatory challenges faced by companies like Grayscale Investments that aim to convert their Bitcoin trusts into ETFs.

Investing in cryptocurrencies has rapidly grown in popularity due to their potential for high returns, despite the risks of price volatility. In response, several exchange-traded funds (ETFs) have emerged to provide investors with exposure to cryptocurrencies, particularly Bitcoin. These funds allow investors to participate in the returns of cryptocurrencies without having to directly purchase and store them. They can be bought and sold on traditional exchanges, making it easier for many investors to access this new asset class. Here are some ETFs that provide exposure to Bitcoin and other cryptocurrencies:

Grayscale Bitcoin Trust (GBTC): Grayscale Bitcoin Trust is a private, open-ended trust that holds Bitcoin. The trust’s investment objective is for the value of its shares to reflect the price performance of Bitcoin, minus fees and expenses. Unlike an ETF, it’s not traded on a traditional exchange, but it can be bought and sold through many brokerage accounts. Note that it often trades at a significant premium or discount to its net asset value.

Purpose Bitcoin ETF (BTCC): Launched in February 2021, this was the world’s first physically settled Bitcoin ETF. The Purpose Bitcoin ETF holds Bitcoin directly and aims to mirror the performance of the price of Bitcoin, minus the fund’s expenses. The fund is listed on the Toronto Stock Exchange.

VanEck Vectors Bitcoin Strategy ETF: This is a US-based ETF that seeks to provide exposure to Bitcoin futures contracts, rather than holding Bitcoin directly. This approach might appeal to investors looking for exposure to Bitcoin’s price movements who prefer the regulatory environment of traditional futures markets.

Bitwise 10 Crypto Index Fund (BITW): This fund provides exposure to a diversified basket of digital assets, including Bitcoin and other large cryptocurrencies like Ethereum. It aims to track the returns of the Bitwise 10 Large Cap Crypto Index, which includes the ten largest digital assets, weighted by market capitalization.

CoinShares Physical Bitcoin (BITC): This is a physically-backed Bitcoin ETP (Exchange Traded Product) listed on the SIX Swiss Exchange. Each unit of BITC is backed with 0.001 Bitcoin at launch. It aims to offer investors exposure to Bitcoin with the added oversight, security, and liquidity of an ETP structure.

3iQ CoinShares Bitcoin ETF: A collaboration between CoinShares and 3iQ, this Bitcoin ETF offers a regulated way for investors to gain exposure to Bitcoin. The fund’s assets are stored in a cold wallet with Gemini Trust Company, a New York-based regulated crypto custodian.

Each of these investment vehicles provides exposure to cryptocurrencies but with different approaches, ranging from direct ownership of Bitcoin to exposure through futures contracts. It’s crucial for potential investors to understand these differences, the fees each fund charges, and their own risk tolerance before investing. As always, due diligence is paramount when it comes to investing in any asset class, particularly ones as volatile and still relatively new as cryptocurrencies.

Historically, Home Depot and Lowe’s often experience higher sales in the spring and summer seasons due to the nature of their business. During this period, many homeowners and contractors embark on home improvement and construction projects, leading to increased demand for their products and services.

The consumer discretionary sector, also known as the cyclical consumer goods and services sector, is a category of stocks that represents companies that sell non-essential goods and services. These are items and services that consumers are willing to spend on when they have extra income and are likely to cut back on during tougher economic times.

The performance of the consumer discretionary sector is heavily dependent on the state of the economy. In a growing economy, consumers have more disposable income to spend on these discretionary items, which can boost the revenues and profits of companies in this sector. However, in a recession, consumer discretionary stocks are often hit hard as people cut back on unnecessary spending.

Consumer discretionary stocks tend to be more sensitive to economic cycles compared to other sectors. During a recession, when unemployment rates rise and household incomes fall, consumers typically cut back on non-essential or discretionary spending. This can result in lower sales and profits for companies in the consumer discretionary sector, which can, in turn, lead to lower stock prices.

Here are a couple of historical examples:

2008-2009 Global Financial Crisis: The Global Financial Crisis, triggered by the collapse of the housing market in the United States, led to a severe global recession. Many consumer discretionary stocks were hit hard. For example, Ford Motor Company’s stock price fell from a high of around $8.50 in 2007 to a low of $1.50 in 2009. Similarly, shares of luxury goods company Tiffany & Co. dropped from around $57 in 2007 to about $20 in late 2008.

Dot-Com Bubble (2000-2002): While the dot-com bubble primarily affected technology stocks, the resulting recession also had an impact on consumer discretionary stocks. For instance, shares of The Gap Inc., a clothing retailer, declined from over $50 in 2000 to around $10 in 2002.

Consumer Discretionary ETFs to Watch

Consumer Discretionary Select Sector SPDR Fund (XLY): This fund tracks the Consumer Discretionary Select Sector Index. Some of its top holdings often include Amazon, Tesla, and Home Depot.

Vanguard Consumer Discretionary ETF (VCR): This ETF tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index. Some top holdings usually include Amazon, Tesla, and Home Depot.

Fidelity MSCI Consumer Discretionary Index ETF (FDIS): This fund seeks to track the performance of the MSCI USA IMI Consumer Discretionary Index. Top holdings often include Amazon, Tesla, and Home Depot.

iShares U.S. Consumer Services ETF (IYC): This ETF tracks the Dow Jones U.S. Consumer Services Index. Some of its top holdings often include Amazon, Home Depot, and Comcast.