The U.S. stock market is having a rough time right now. Since the beginning of the year, the S&P 500 has dropped 13 percent. Big tech names like Nvidia are losing value, and Wall Street is definitely feeling the pain.
A big reason behind this mess is the trade war and tariff drama caused by Trump’s recent policies. But here’s the good news, not everything is going down. A few investments are actually doing just fine, and some are even growing.
China Tech Isn’t Even Sweating
While American tech stocks are falling, Chinese tech is doing the opposite. The KraneShares CSI China Internet ETF, also called KWEB, is up. That’s because companies like Alibaba and Tencent are not being hit by the same problems as U.S. tech firms. Another fund, the Invesco China Technology ETF (CQQQ), is also holding steady. In short, these Chinese companies are outside of the U.S. drama and are doing better because of it.
EU Banks Beat Tariff Heat
European banks have been getting ready for challenges since Brexit and the Russia-Ukraine crisis. Now, they seem stronger than ever. The iShares MSCI Europe Financials ETF (EUFN) is up by 1 percent. That’s while U.S. bank ETFs like XLF are dropping. It shows that Europe’s financial system is more stable right now and better prepared for global shocks.
Safe Bets: Utilities, Bonds & Good Ol’ Gold
If all this sounds too risky, there are still some calm choices out there. Utility stocks, which include companies like NextEra Energy and Duke Energy, are steady and don’t move too much. The Utilities Select Sector SPDR Fund (XLU) is a good example.
Bonds are also looking better now. The Vanguard Total Bond Market ETF (BND) is paying about 4.5 percent, which is decent without taking big risks.
And gold is doing well, too. The iShares Gold Trust (IAU) just hit a 52-week high and is up 46.41%. Gold miner ETFs like GDX are doing even better, up over 24 percent.
Right now, the stock market might feel like a storm, but you don’t have to stand in the rain. These ETFs are showing us that with a little strategy, you can stay dry, and maybe even come out ahead.
