During the latest stock market drop, ETFs for tech, crypto, and emerging markets hit all-time lows.

Tech, crypto, and developing markets ETFs hit historic lows during this financial meltdown

Things are getting worse in the tech world. The Nasdaq Composite has gone down for 7 straight trading days, which is 8.6%. This is the longest losing streak since November 2016, when it went down for 9 days in a row.

Several thematic tech ETFs that used to do well are now at or near their 52-week lows by less than 1%.

Here are a few:

Global S Social Media (SOCL): the lowest since April 2020

Global X Video Games and eSports (HERO): lowest since May 2020

Lowest since April 2020 for Global X Robotics (BOTZ)

Even bonds don’t look good. The iShares Corporate Bond ETF (LQD), which is the biggest one of its kind, is at its lowest level in 11 years.

Rising interest rates hurt developing countries. The iShares Emerging Markets (EEM) is at a two-year low, and it’s still down 20% this year even if you take out China (EMXC). The iShares MSCI South Korea ETF (EWY) is also at its lowest level in the last two years.

Even precious metals don’t do anything. A major gold ETF (GLD) is close to a new low, and a fund that tracks silver (SLV) is close to a low from two years ago.

Even crypto is stuck in a rut. The Grayscale Bitcoin Trust (GBTC) and bitcoin futures ETFs like VanEck Bitcoin Strategy (XBTF) and Valkyrie Bitcoin Strategy ETF (BTF), which are all within 1% of a new low, are also losing money because bitcoin is close to a 20-month low.

Even pot stocks are falling apart. The low point for the ETFMG Alternative Harvest ETF (MJ) was a record low (went public in 2015).

Moving Markets

IPO market starting to pick up?

At least the IPO market seems to be getting better. Corebridge, which is a part of AIG’s life and retirement business, will soon go public, the company said last night.
With 80 million shares priced between $21 and $24, it would be the biggest deal of the year, worth about $1.8 billion. This year has been one of the worst for IPOs in decades.

This comes after VW said on Monday that Porsche would be going public soon.

Matt Kennedy at Renaissance Capital told me that both are “big, stable, and profitable companies that are being split off from bigger publicly traded parents” (AIG and VW, respectively). And remember that this was also true earlier this year of Bausch + Lomb.

These companies are about what you would expect to be the first IPOs to test the market, but it will be a while before the IPO window is wide open for the unicorn class.


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