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5 ETFs at the Forefront of the Latest Market Rally
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The encouraging development in coronavirus vaccines and hopes of their availability soon has led to a strong wave of bullishness in the stock market over the past month.
In fact, Wall Street has hit a series of record highs with the four indices — the S&P 500, the Dow Jones Industrial Average, the tech-heavy Nasdaq Composite and the small-cap Russell 2000 — closed at new highs for the first time since January 2018 at same time, according to Dow Jones Market Data (read: S&P 500 Set to Climb Higher in 2021: Bet on These ETFs).
This is especially true as a vaccine will end the economic crisis and result in swift recovery. Additionally, the latest job data for November revealed the slowest U.S. jobs growth in six months that has raised expectations for a new fiscal relief bill to help revive the coronavirus-hit economy.
Further, the potential for a divided Congress with President-elect Biden and better-than-expected earnings has been fueling growth in the stocks. The divided government is favorable for the economy, as there will be lesser chances of major tax increases and tighter regulations. The prospect of a smooth transition of Biden to the White House has also been driving the stocks higher.
While the winners have spread across various corners, several ETFs have easily crushed the market by wide margins. Below we have presented a bunch of top-performing ETFs from various corners of the market over the past month that is likely to continue outperforming, should the trends prevail.
This fund tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. With AUM of $651.6 million, it holds 25 stocks in its basket and charges 35 bps in annual fees. The product trades in volume of 442,000 shares per day and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Energy on Track for Its Best Month Ever: 5 ETF, Stock Winners).
This is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. The fund holds 27 stocks in its basket. AWAY has accumulated $58.2 million in its asset base and trades in an average daily volume of 57,000 shares.
This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. In total, the product holds 40 securities and charges 60 bps in annual fees. It has gathered $2.3 billion in its asset base while sees heavy trading volume of nearly 5.3 million shares a day. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Invesco S&P 500 High Beta ETF (SPHB - Free Report) – Up 29.8%
This ETF tracks the performance of 100 stocks from the S&P 500 Index with the highest beta over the past 12 months. It is widely spread out across each security as none holds more than 1.7% of the total assets. More than one-third of the portfolio is allotted to financials while energy and consumer discretionary round off the next two spots with double-digit allocation. It has AUM of $429.9 million and 0.25% in expense ratio (read: After a Historic November, What Awaits ETFs in December?).
Pacer Lunt Large Cap Alternator ETF (ALTL - Free Report) – Up 29.6%
This ETF is a strategy-driven, large-cap ETF that seeks to track the investment returns of an index that alternates exposure between low volatility and high-beta stocks in the S&P 500 Index. It holds 101 stocks in its basket with none making up for more than 1.7% of assets. Healthcare, consumer staples, and industrials are the top three sectors with double-digit exposure each. The fund charges 60 bps in annual fees and trades in an average daily volume of 15,000 shares. It has accumulated $47.9 million in its asset base since its debut in late June.
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5 ETFs at the Forefront of the Latest Market Rally
The encouraging development in coronavirus vaccines and hopes of their availability soon has led to a strong wave of bullishness in the stock market over the past month.
In fact, Wall Street has hit a series of record highs with the four indices — the S&P 500, the Dow Jones Industrial Average, the tech-heavy Nasdaq Composite and the small-cap Russell 2000 — closed at new highs for the first time since January 2018 at same time, according to Dow Jones Market Data (read: S&P 500 Set to Climb Higher in 2021: Bet on These ETFs).
This is especially true as a vaccine will end the economic crisis and result in swift recovery. Additionally, the latest job data for November revealed the slowest U.S. jobs growth in six months that has raised expectations for a new fiscal relief bill to help revive the coronavirus-hit economy.
Further, the potential for a divided Congress with President-elect Biden and better-than-expected earnings has been fueling growth in the stocks. The divided government is favorable for the economy, as there will be lesser chances of major tax increases and tighter regulations. The prospect of a smooth transition of Biden to the White House has also been driving the stocks higher.
While the winners have spread across various corners, several ETFs have easily crushed the market by wide margins. Below we have presented a bunch of top-performing ETFs from various corners of the market over the past month that is likely to continue outperforming, should the trends prevail.
VanEck Vectors Oil Services ETF (OIH - Free Report) - Up 61%
This fund tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling. With AUM of $651.6 million, it holds 25 stocks in its basket and charges 35 bps in annual fees. The product trades in volume of 442,000 shares per day and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Energy on Track for Its Best Month Ever: 5 ETF, Stock Winners).
ETFMG Travel Tech ETF (AWAY - Free Report) – Up 34%
This is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. The fund holds 27 stocks in its basket. AWAY has accumulated $58.2 million in its asset base and trades in an average daily volume of 57,000 shares.
U.S. Global Jets ETF (JETS - Free Report) – Up 32.4%
This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. In total, the product holds 40 securities and charges 60 bps in annual fees. It has gathered $2.3 billion in its asset base while sees heavy trading volume of nearly 5.3 million shares a day. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Invesco S&P 500 High Beta ETF (SPHB - Free Report) – Up 29.8%
This ETF tracks the performance of 100 stocks from the S&P 500 Index with the highest beta over the past 12 months. It is widely spread out across each security as none holds more than 1.7% of the total assets. More than one-third of the portfolio is allotted to financials while energy and consumer discretionary round off the next two spots with double-digit allocation. It has AUM of $429.9 million and 0.25% in expense ratio (read: After a Historic November, What Awaits ETFs in December?).
Pacer Lunt Large Cap Alternator ETF (ALTL - Free Report) – Up 29.6%
This ETF is a strategy-driven, large-cap ETF that seeks to track the investment returns of an index that alternates exposure between low volatility and high-beta stocks in the S&P 500 Index. It holds 101 stocks in its basket with none making up for more than 1.7% of assets. Healthcare, consumer staples, and industrials are the top three sectors with double-digit exposure each. The fund charges 60 bps in annual fees and trades in an average daily volume of 15,000 shares. It has accumulated $47.9 million in its asset base since its debut in late June.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>