Markets

Three Top Ways to Trade this Ridiculous Heat Wave

Jul 20, 2023
Heat Temperature - Thermometer, Warm Sun And Dry Soil - Extreme Climate - contain 3d Rendering
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It is disgustingly hot outside. For some, that doesn’t matter. In fact, some folks decided to take a trip to Death Valley – the hottest place on earth – to experience how triple digit temperatures feel against their skin. Temperatures got up to 128 degrees on Sunday, which was just shy of July 1913 records, when the valley got up to 134 degrees.

Other parts of the country are dealing with excessive heat, too. Phoenix, for example, had 19 consecutive days of 110 degrees or higher.

Worse, according to CNN, “An enormous, relentless stubborn ridge of high pressure has trapped air inside in a “heat dome,” resulting in extreme temperatures as the dome parks itself over the already sweltering areas. The heat will remain until a shift in the weather pattern occurs and either breaks apart the heat dome or moves it out of the country completely. That’s not expected any time soon.”

We can only hope you’re all staying cool, and checking on others who may be in need. At the same time, we hope you’re profiting from the seasonality, which we mentioned in late June.

One of the trade ideas was Generac Holdings (GNRC) – a generator company that watched its stock soar from about $92 in May to a current price of $145.89.

We also mentioned a couple of ETFs, including:

Etho Climate Leadership US ETF (ETHO), for example.

With an expense ratio of 0.45%, the ETF invests in companies that “align with high ESG guidelines, have lower pollution, and strong operational efficiency vs. their sector and industry peers.” Some of its top holdings include Nvidia, Hubbell, Toll Brothers, KB Home, and Adobe to name a few. Since late June, the ETF ran from about $52 to $55.25.

And, Engine No. 1 Transform Climate ETF (NETZ)

Or, look at Engine No. 1 Transform Climate ETF (NETZ). Since the start of June, the NETZ ETF ran from about $48 to $51.30. It has an expense ratio of 0.75%, and invests in companies that will drive and benefit from the energy transition.

NETZ holds companies that have a strategy to create value on their path to net zero across multiple industries, including transportation, energy, and agriculture, according to ETF.engine1.com. Since late June, the ETF ran from about $50.75 to $53.

Stay cool out there, my friends.

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