For leveraged returns, traders have been looking at ETF plays in NEED and WANT. NEED eked out a small gain of 0.70% on Wednesday, but has been up 4 percent within the last five days, while WANT surged 6.53 percent on strength from the major indexes due to U.S.-China trade talks progressing.
NEED seeks daily investment results equal to 300% of the daily performance of the Consumer Staples Select Sector Index that includes domestic companies from the consumer staples sector which includes the following industries: food and staples retailing; household products; food products; beverages; tobacco; and personal products. WANT seeks daily investment results of 300% of the daily performance of the Consumer Discretionary Select Sector Index, which is provided by S&P Dow Jones Indices and includes domestic companies from the consumer discretionary sector. It is non-diversified.
These sectors will be of particular importance, especially if U.S.-China trade deal negotiations go asunder in the forthcoming weeks. Thus far, the markets have been quick to digest the positive news emanating from financial news outlets, but defensive plays against volatility like NEED and WANT could continue to see interest from cautionary traders.
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