NightShares 500 1x/1.5x ETF

NSPL is an actively managed ETF that aims to benefit from leveraged overnight exposure to US large-cap stocks. The fund provides 1x exposure to the performance of the portfolio during the day and 1.5x at night.

iShares Russell 2000 ETF

Nightshares Russell 2000 ETF

Nightshares Russell 1000 ETF

SPDR S&P 500 ETF Trust

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

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

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

Over the past 20 years, the night effect has been particularly prominent during April. The overnight session often behaves better than the day session in that it frequently captures much of the upside while avoiding significant downturns.

How the Night Effect Has Enhanced April Returns

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 S&P 500 notched its biggest weekly percentage decline last week since September, with all losses notably coming from the day session. The S&P 500 — tracked by the SPDR S&P 500 ETF Trust (SPY) — lost 4.6% last week.

Investors Capturing the Night Effect Avoided S&P 500 Losses Last Week

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).

Night Effect Demonstrated in Large-Cap Stocks Yesterday

Volatility in markets will remain a key theme in 2023, particularly as recent U.S. economic data has led investors to anticipate interest rates will likely stay higher for longer. Risk-adjusted returns are important characteristics to consider as advisors make allocation decisions for clients, with majority of advisors using Sharpe ratios assess risk versus reward.

Invest in the Night for Stronger Risk-Adjusted Returns

Another volatile month for markets comes to a close, with major indexes giving back some of January's gains. Following January's strong rally, stocks struggled in February, as recent economic reports showed inflation unexpectedly increasing the month prior.

Night Sessions Lag in February as Volatile Month Comes to a Close

iShares Core S&P 500 ETF

AXS 1.25X NVDA Bear Daily ETF

Putnam Sustainable Leaders ETF

Harbor Scientific Alpha High-Yield ETF

Vanguard S&P 500 ETF

Vanguard Total Stock Market ETF

Most of the fastest-growing funds started from a small base of assets.

Small ETFs Gaining Traction in 2023

VettaFi's vice chairman Tom Lydon discussed NightShares 500 1x/1.5x ETF (NSPL) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Launching last fall, NSPL is an unusual fund.

ETF of the Week: NightShares 500 1x/1.5x ETF (NSPL)

NightShares launched three new ETFs last year, introducing many advisors to the night effect for the first time. The night effect, which can be accessed via the NightShares 500 ETF (NSPY), the NightShares 200 ETF (NIWM), and the NightShares 500 1x/1.

NightShares CEO Bruce Lavine on the Fundamentals of the Night Effect

As markets remain increasingly complex and challenged, advisors need to work harder to generate attractive risk-adjusted returns for clients. Each year for the past decade, Astoria Portfolio Advisors has released a dedicated year-ahead ETF outlook, highlighting ETFs the firm finds attractive on a per unit-of-risk basis.

Astoria's John Davi on the Night Effect's Role in Portfolios

In a sea of strategies within equities, the NightShares ETF suite, which seeks to capture the “night effect,” stands out as an innovative approach to equity investing.

Under the Hood of NightShares' NSPL

The night effect has the potential to provide investors strong returns with lower risk. Night has delivered much of U.S. large cap equities' return with much lower volatility over the past 20 years.

News for NightShares 500 1x/1.5x ETF ETF (NSPL)