Wall Street's Worst Week Since September: 5 ETFs That Defied The Market Slump

U.S. stocks faced their steepest weekly drop in months as uncertainty over trade policy and Federal Reserve Chair Jerome Powell's cautious stance on rate cuts rattled investor sentiment. The S&P 500 marked its worst week since September, while the Nasdaq and Dow also ended the week in the red. Rising unemployment concerns and weak earnings from major companies added to the pressure. Despite the broader market slump, a few ETFs emerged as top performers, benefiting from volatility, leveraged strategies and sector-specific trends.

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1. Defiance Daily Target 2x Long MSTR ETF (NASDAQ:MSTX) – This ETF offers leveraged exposure to MicroStrategy.

• Weekly Gains: 55.75%

• Expense Ratio: 1.29%

2. iPath Series B S&P 500 VIX Short-Term Futures ETN (BATS:VXX) – With market volatility spiking, this exchange-traded note, which tracks short-term VIX futures, gained as investors sought hedges against uncertainty.

• Weekly Gains: 15.37%

• Expense Ratio: 0.89% 

3. ProShares VIX Short-Term Futures ETF (BATS:VIXY) – Another volatility-linked ETF, VIXY benefited from the market downturn, rising alongside the VIX index as risk-off sentiment took hold.

• Weekly Gains: 15.35%

• Expense Ratio: 0.85%

4. T-Rex 2X Long Bitcoin Daily Target ETF (BATS:BTCL) – Bitcoin's rally lifted BTCL, which amplifies daily price movements in the cryptocurrency, attracting traders seeking leveraged exposure.

• Weekly Gains: 12.41%

• Expense Ratio: 0.95%

5. Tuttle Capital Daily 2X Inverse Regional Banks ETF (NASDAQ:SKRE) – As concerns over economic resilience and interest rate policy pressured regional banks, this inverse ETF gained by betting against the sector.

• Weekly Gains: 11.91%

• Expense Ratio: 0.75%

Amid market instability, these ETFs provided traders opportunities to capitalize on volatility, crypto momentum and sector-specific downturns.

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A Glimpse Into The Past Week

U.S. stocks ended higher on Friday, recovering from early losses after Powell said the economy was “in a good place.”

However, concerns over U.S. trade policy led to Wall Street's biggest weekly decline in months, with the S&P 500 down 3.1%, its worst since September, according to Reuters. Meanwhile the Nasdaq and Dow fell 3.45% and 2.37%, respectively. The Russell 2000 Small Cap Index dropped 3.86%, as the S&P 500 and Nasdaq posted their third consecutive weekly decline, the longest since mid-2023.

Powell reiterated a cautious stance on monetary policy easing, while job growth rebounded in February, though unemployment ticked up to 4.1%, raising concerns over economic resilience.

Morgan Stanley and Goldman Sachs lowered growth forecasts, citing weaker consumer spending.

Trade tensions remained high as Trump granted a four-week tariff reprieve for Canada and Mexico but maintained barriers with China.

Earnings disappointments also pressured markets last week. For instance, Hewlett Packard Enterprise (NASDAQ:HPE) fell 12% on tariff-related profit warnings, Costco (NASDAQ:COST) lost 6% on higher merchandise costs, while Broadcom (NASDAQ:AVGO) surged 8.6% after a strong AI-driven forecast.

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