Tariffs, Inflation And Tumbling Markets: These 5 ETFs Thrived Amid Last Week's Chaos

Investor sentiment was dealt a shock last week when President Donald Trump declared a 25% tariff on auto imports, increasing inflation fears and spooking the markets. Inflation readings were hotter than expected, consumer confidence faltered and the national debt outlook worsened.

Despite the volatility in the market, five ETFs that managed to perform well deserve a mention:

MicroSectors Gold 3X Leveraged ETNs SHNY – This exchange-traded note saw an uptick as investors rushed to gold amid inflation fears and rising global uncertainty.

Weekly Gains: 7.22%

Expense Ratio: 0.95%

GraniteShares 2x Short NVDA Daily ETF NVD – As AI chip giant Nvidia NVDA ran into headwinds, this leveraged inverse ETF rallied on its pullback.

Weekly Gains: 21%

Expense Ratio: 1.5%

Direxion Daily AI and Big Data Bear 2X Shares AIBD – While AI stocks suffered due to general risk-off sentiment, this bear ETF delivered strong returns.

Weekly Gains: 14.4%

Expense Ratio: 1.04%

T-Rex 2X Inverse Ether Daily Target ETF ETQ – This inverse Ethereum ETF benefited from the drop in Ether as crypto markets remained volatile.

Weekly Gains: 22.8%

Expense Ratio: 1.25%

iPath Series B S&P 500 VIX Short-Term Futures ETN VXX – As uncertainty in the markets rose, volatility climbed, bringing returns for this ETN on short-term VIX futures.

Weekly Gains: 13.14%

Expense Ratio: 0.89%

How Markets Fared Last Week

The news of blanket auto tariffs shook equities, particularly automotive and consumer plays. General Motors GM and Ford F nosedived as investors worried about higher costs and lower demand. Companies manufacturing domestically, like Tesla TSLA and Rivian RIVN, stayed safe.

The broader market was also low on enthusiasm as trade tensions and higher-than-anticipated inflation readings kept investors cautious. The core Personal Consumption Expenditures (PCE) price index for February climbed 2.8% from a year earlier, exceeding the expected 2.7%. This led to reconsiderations in the Fed’s rate-cut path, watering down expectations for early monetary easing.

On Friday, the University of Michigan consumer sentiment survey drew an even more dismal picture, saying Americans see inflation averaging 4.1% over the next five years, the highest level since February 1993. Amid these numbers, consumer confidence fell to its lowest level since November 2022.

Needless to say, safe-haven assets came into favor. Gold prices rose to all-time highs as investors fled to safety from market volatility, while Treasury yields surged as bond markets re-priced the Fed’s policy expectations.

Meanwhile, the U.S. debt-to-GDP ratio is projected to surpass its World War II peak by 2029 and reach a staggering 156% of GDP by 2055, adding another layer of long-term economic uncertainty.

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