Finance
Citigroup (C) earnings Q1 2024
Katie Stockton thinks she has a viable option for investors trying to withstand wild market swings.
She manages the Fairlead Tactical Sector ETF (TACK), which is designed to be nimble in times of market stress. It’s not tied to an index.
“What we try to do is help investors leverage the upside through sector rotation, but also minimize drawdowns,” the Fairlead Strategies founder told CNBC’s “ETF Edge” this week. “That’s obviously a big advantage longer term when you can just go into a less deep hole to climb out of.”
According to Stockton, her ETF is particularly nimble in this environment because it uses multiple strategies — not just one. Since President Donald Trump announced his “reciprocal” tariffs on April 2, the ETF has fallen just over 4%, while the S&P 500 has lost 6.9%.
Stockton’s ETF rotates monthly between all 11 S&P 500 sectors.
“We don’t own technology anymore,” Stockton said. “Some of the sectors that we like to invest in have fallen out of favor.”
As of April 16, the fund’s top sector holdings included consumer staples, utilities and real estate, according to Fairlead Strategies.
As of Thursday’s close, the Fairlead Tactical Sector ETF is down 4% so far this year.
Meanwhile, ETFs that are centered around specific sectors or strategies are largely under pressure. For example, the Invesco Top QQQ Trust (QBIG), which tracks the top 45% of companies in the Nasdaq-100 index, is down 22% in 2025.
The GraniteShares YieldBoost TSLA ETF (TSYY) is off 48% since the beginning of the year.
BTIG’s Troy Donohue, the firm’s head of Americas portfolio trading, thinks Stockton’s ETF employs a sound strategy – particularly during the recent “dramatic pullback.”
“TACK is a great example of how you can be nimble during these market times,” Donohue said. “It’s great to see it in an ETF product that has performed really well during this recent drawdown.”
Sign at the entrance to a Capital One bank branch in Manhattan.
Erik Mcgregor | Lightrocket | Getty Images
Capital One Financial‘s application to acquire Discover Financial Services in a $35.3 billion all-stock deal has officially been approved by the Federal Reserve and the Office of the Comptroller of the Currency, the regulators announced on Friday.
“The Board evaluated the application under the statutory factors it is required to consider, including the financial and managerial resources of the companies, the convenience and needs of the communities to be served by the combined organization, and the competitive and financial stability impacts of the proposal,” the Fed said in a release.
Capital One first announced it had entered into a definitive agreement to acquire Discover in February 2024. It will also indirectly acquire Discover Bank through the transaction.
Under the agreement, Discover shareholders will receive 1.0192 Capital One shares for each Discover share or about a 26% premium from Discover’s closing price of $110.49 at the time, Capital One said in a release.
Capital One and Discover are among the largest credit card issuers in the U.S., and the merger will expand Capital One’s deposit base and its credit card offerings.
After the deal closes, Capital One shareholders will hold 60% of the combined company, while Discover shareholders own 40%, according to the February 2024 release.
In a joint statement, Capital One and Discover said they expect to close the deal on May 18.
WATCH: Jamie Dimon on Capital One’s $35.3 billion Discover acquisition: ‘Let them compete’
Trump tariffs could cause summer economic slump: Chicago Fed president
Donald Trump wants a certain kind of immigrant: the uber-rich
How to protect your nest egg from tariff volatility near retirement
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
The Essential Practice of Bank and Credit Card Statement Reconciliation
Are American progressives making themselves sad?
-
Accounting1 week agoTrump’s tariff shift has markets, industry groups panicked
-
Technology1 week agoWill iPhone Prices Rise Due to Trump’s China Tariffs?
-
Finance1 week agoStocks making the biggest moves midday: Frontier Group, JPMorgan, Apple, Stellantis, BlackRock and more
-
Blog Post1 week agoSales Tax Compliance Mastering in Bookkeeping
-
Economics6 days agoWill the Supreme Court empower Trump to sack the Fed’s boss?
-
Finance1 week agoHow China’s exporters are scrambling to mitigate the impact of punishing U.S. tariffs
-
Personal Finance6 days agoThe first quarter estimated tax deadline for 2025 is April 15
-
Personal Finance5 days agoCash may feel safe when stocks slide, but it has risks