5 ETFs That Beat the Market Last Week

as downbeat last week, with the S&P 500 losing 1.7%, the Dow Jones shedding 2.5% and the Nasdaq slipping 2.5%. Geopolitical tensions related to Trump tariffs, the expected rise in inflation and the likelihood of a less-dovish Fed have been instrumental in pushing the U.S. market lower. Meanwhile, investors started liking Chinese stocks more due to the DeepSeek euphoria, which weighed on U.S. tech biggies (read: ETFs to Bet Big on China Amid Fund Rotation).

Wall Street closed lower last week, with the S&P 500 shedding 1.7%. The Dow Jones lost 2.5%, while the Nasdaq slipped 2.5%. Geopolitical tensions related to Trump tariffs, the expected rise in inflation and the likelihood of a less-dovish Fed pushed the U.S. market lower.

Meanwhile, investors rotated out of Chinese stocks after a stellar rally earlier this year, which weighed on U.S. tech biggies (read: ETFs to Bet Big on China Amid Fund Rotation).

There was also a development related to the Defense budget. According to The Washington Post, Defense Secretary Pete Hegseth has proposed an 8% reduction in U.S. military spending over the next five years. If adopted, this move would be the largest effort to reduce Pentagon spending since 2013 (read: How Military Budget Cuts Could Shake Up Defense ETFs?).

Moreover, fresh U.S. economic data heightened investor fears of a slowing economy and persistent inflation. The University of Michigan consumer sentiment index fell to 64.7 in February — a nearly 10% decline — as consumers voiced inflation concerns, particularly due to possible new tariffs. The five-year inflation outlook climbed to 3.5%, the highest since 1995.

U.S. existing home sales dropped more than expected to 4.08 million units in January. The U.S. services purchasing managers’ index (PMI) dipped into contraction territory for February, per S&P Global data.

Against this backdrop, below we highlight a few winning exchange-traded funds (ETFs) of last week.

ETFs in Focus

Breakwave Dry Bulk Shipping ETF BDRY – Up 17.3%

The Breakwave Dry Bulk Shipping ETF seeks to provide 3x leveraged, long exposure to the daily performance of the Capesize 5TC, Panamax 4TC & Supramax 6TC dry bulk freight indices, as measured by the Baltic Exchange. The underlying Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight. The expense ratio of the fund is 3.50%. Note that container shipping stocks gained in prices lately as Middle East peace prospects dimmed.

United States Natural Gas Fund LP UNG – Up 13.5%

The United States Natural Gas Fund seeks to provide daily investment results, before expenses, that correspond to 3x the performance of the Natural Gas Price Index, as measured by the CME Group. The underlying Natural Gas Price Index is the futures contract on natural gas as traded on the NYMEX. The expense ratio of the ETF is 1.01%. U.S. natural gas futures rose more than 2.5% to $4.3/MMBtu, hitting a 25-month high as cold weather weighed on supply and boosted demand. Prices surged as an Arctic blast boosted heating demand while freezing oil and gas wells, disrupting production. Forecasts indicate colder-than-normal temperatures across the Lower 48 states through February 22, keeping consumption high, as quoted on tradingeconomics.

YieldMax Short COIN Option Income Strategy ETF FIAT – Up 12.9%

The YieldMax Short COIN Option Income Strategy ETF is an actively managed exchange-traded fund that seeks current income while providing indirect inverse exposure to the share price of the common stock of Coinbase Global, Inc. The COIN stock slumped 18.3% last week, which boosted the ETF that offers safer exposure to COIN trading.

Global X Data Center And Digital Infrastructure ETF DTCR – Up 7.7%

The Global X Data Center And Digital Infrastructure ETF seeks to provide exposure to companies that derive a significant portion of their revenue from data centers, cellular towers and digital infrastructure hardware. The underlying Solactive Data Center REITs & Digital Infrastructure Index is designed to track the performance of U.S. real estate investment trusts (REITs) and other companies that have business operations in the fields of data centers, cellular towers and digital infrastructure hardware. The fund charges 50 bps in fees.

PLUS Korea Defense Industry Index ETF KDEF – Up 7.1%

The PLUS Korea Defense Industry Index ETF seeks to provide exposure to South Korean companies that derive a substantial portion of their revenue from the defense industry. The underlying Korea Defense Industry Index is designed to track the performance of South Korean companies that have demonstrated high relevance to defense, as determined by their revenue contribution from defense-related activities. The fund charges 65 bps in fees.

This article originally published on Zacks Investment Research (zacks.com).