Nightshares Russell 2000 ETF

NIWM is an actively managed ETF that aims for capital appreciation through overnight exposure to small-cap US stocks. The fund allocates assets through a combination of stocks, US Treasurys, and futures contracts or total return swaps.

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FormulaFolios Tactical Growth ETF

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Principal Millennial Global Growth ETF 

Nightshares Russell 1000 ETF

First Trust US Equity Dividend Select ETF

VanEck Vectors Russia ETF

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As we head toward summer's end, ETF launches remain muted if this week is anything to go by, with only nine new funds debuting, a slight uptick from the week ended July 28. Perhaps most notably, JPMorgan rolled out another two actively managed ETFs on Monday that were converted from mutual funds.

This Week in ETFs: JPMorgan Converts 2 Funds

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Amplify Alternative Harvest ETF

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Global X MSCI Nigeria ETF

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Amplify Junior Silver Miners ETF

The week ending Friday, July 21, has been busy for the ETF industry, though launches were muted. A total of seven funds rolled out, which suggests the market could be entering some kind of summer slump.

This Week in ETFs: A Summer Slowdown

NightShares 500 1x/1.5x ETF

It's important that advisors using the night effect in portfolios can explain the phenomenon to clients. Advisors can leverage the night effect to enhance risk-adjusted returns for clients.

How Advisors Can Explain the Night Effect to Clients

Many advisors misunderstand the night effect and how NightShares ETFs can enhance portfolios. The night effect is a powerful, persistent pattern seen in markets.

Advisors Misunderstand These 2 Things About the Night Effect

iShares Russell 2000 ETF

SPDR S&P 500 ETF Trust

The overnight session's positive performance in May helped offset losses during the day in large- and small-cap stocks. The overnight trading session contributed all of large and small caps positive performance last month.

May Market Recap: Overnight Gains Offset by Day Losses

NightShares offers three ETFs designed to efficiently capture the night effect for investors. The night effect is a market anomaly whereby overnight markets have historically outperformed the daytime trading session on a risk-adjusted basis.

How to Use NightShares ETFs in Portfolios

Investors can add the NightShares 2000 ETF (NIWM) to their small-cap allocation to smooth out volatility and enhance risk-adjusted returns. NIWM provides exposure to the night performance of 2000 small-cap U.S. companies (comparable to the night session of the Russell 2000).

Add NIWM to Smooth Out Small-Cap Volatility

Large- and small-cap stocks in May have seen a stable upward drift during the overnight trading session, only for the day session to claw back returns. The night effect is a persistent phenomenon whereby overnight markets have historically outperformed the daytime trading session on a risk-adjusted basis.

Day Trading Session Losses Void Overnight Gains in May

Large- and small-cap stocks this month have seen a stable upward drift during the overnight trading session, with the day session clawing back returns for buy-and-hold investors. The night effect is a persistent phenomenon whereby overnight markets have historically outperformed the daytime trading session on a risk-adjusted basis.

Day Session Losses Void Night Gains for Buy-and-Hold Investors

The day and overnight trading sessions had vastly different responses to the latest inflation print. The SPDR S&P 500 ETF Trust (SPY) and the iShares Russell 2000 ETF (IWM) both saw notable gains during the overnight trading session yesterday, before declining sharply during the day session.

Night Trading Sessions React Differently Than Day to CPI Release

Investors can use NightShares ETFs to dampen volatility in a portfolio, effectively increasing their risk budget elsewhere. Tilting toward the night is an important strategy to consider as investors look for ways to strengthen returns.

NightShares ETFs Reduce Volatility, Increasing Risk Budget Elsewhere

Analyzing funds' Sharpe ratios can be a useful tool in assessing whether investors are being rewarded for taking on additional risk. NightShares launched three ETFs in 2022 that offer exposure to the overnight session, which has historically outperformed the daytime trading session on a risk-adjusted basis, evidenced by a higher Sharpe ratio.

Using Sharpe Ratios to Assess NightShares ETFs

Capturing the night effect can enhance client portfolios by lifting risk-adjusted returns and offering non-correlated exposure to other asset classes. Many advisors are still unaware of the night effect despite the market anomaly having been studied academically for over two decades.

The Advisor's Guide to Helping Clients Understand the Night Effect

While the night effect can be clearly seen in both small- and large-cap stocks, it has historically been far more pronounced in small-cap returns. Over the past 20 years (2003 through 2022), 100% of the returns generated by the iShares Russell 2000 ETF (IWM) have come at night.

The Night Effect Is to Thank for Strong Small-Cap Returns

Capturing the night effect is one way that advisors can enhance risk-adjusted returns and add value to client portfolios. While the night effect has been studied academically for over two decades, many advisors are unaware of the phenomenon.

Everything Advisors Need to Know About the Night Effect

Avantis U.S. Small Cap Value ETF

O'Shares US Small-Cap Quality Dividend ETF

Schwab U.S. Large-Cap Growth ETF

T Rowe Price Blue Chip Growth ETF

Vanguard Large-Cap ETF

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Bull vs. Bear: Will Small-Caps Shine in a Coming Recession?

The power of the night effect was observed in large- and small-caps as stocks fell on Wednesday.

Night Effect Seen as Large- and Small-Cap Stocks Fell on Wednesday

Advisors can use NightShares ETFs in the alternatives sleeve of client portfolios. Alternative assets are used to reduce the overall risk and diversify client portfolios, as alternatives should have minimal correlation to stocks or bonds.

Use NightShares ETFs in the Alternatives Sleeve of Client Portfolios

Volatility was a key theme in markets in March, closing out a turbulent first quarter. U.S. large-caps had their strongest start to the year since 2019, and the second-strongest first quarter in the past decade, leading to a significant difference in returns between large-caps and small-caps.

Night Session Provided Attractive Returns, Lower Volatility in March

Advisors are using NightShares ETFs in client portfolios for equity returns as well as non-correlated exposure across asset classes. The overnight session often behaves better than the day session in that it frequently captures much of the upside while avoiding significant downturns.

2 Reasons Why Advisors Are Using NightShares ETFs

As large- and small-cap stocks tumbled yesterday on the latest interest rate hike from the Federal Reserve, investors in the night effect managed to avoid losses. Broad indexes fell sharply on Wednesday afternoon as investors digested the latest Fed meeting, in which the federal funds rate was lifted by 25 basis points.

Night Effect Demonstrated as Market Plunged After Fed's Latest Rate Hike

As the month is nearing a close, volatility is a key theme in markets in March. March has seen about twice as many trading sessions in the tails (recording daily moves of at least 1%) compared to the past 20-year average.

Volatility Is a Key Theme in Markets in March

Advisors can use NightShares ETFs in client portfolios for non-correlated exposure across asset classes. Alternative assets are used to reduce the overall risk and diversify client portfolios, as alternatives should have minimal correlation to stocks or bonds.

Use NightShares ETFs for Non-Correlated Exposure Across Asset Classes

The power of the night effect was seen in large caps on Thursday for the second time this week. As the S&P 500 is on track to shed over 3% this week, all losses have come from the day session, with the overnight session modestly in the green.

Spread Between Day/Night Returns Grow as Large Caps Fall this Week

The power of the night effect was demonstrated in large-cap stocks on Tuesday. At market close, there was a 150 basis point spread between the prior night and day performance of the SPDR S&P 500 ETF Trust (SPY).

News for Nightshares Russell 2000 ETF ETF (NIWM)