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Tech Tops in 2020: ETFs & Stocks That More Than Doubled
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Technology has been the best-performing sector of this year amid the pandemic. This is especially true as S&P 500 Information Technology climbed 42.6% when compared to the gains of 15.6% for the S&P 500 Index (read: 5 Sector ETFs That Beat the Market in 2020).
The COVID-19 pandemic has led to a global digital shift, which has accelerated e-commerce for everything ranging from remote working to entertainment and shopping. The recent resurgence in coronavirus cases and the second wave of lockdowns continued to fuel demand for Internet. Additionally, the rapid adoption of big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication and 5G technology is driving the sector higher.
Further, the prospect of a divided government with the president elect Joe Biden also strengthened optimism in the sector. This is because the scenario will limit the new legislation and dim the prospect of an antitrust breakup of mega-cap tech companies.
Given this, we have highlighted four ETFs & stocks that are at the forefront of the broad market rally this year.
It is an actively managed fund seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. The fund holds 48 securities in its basket and charges 75 bps in annual fees. The product has gathered $19.1 billion in its asset base.
ARK Next Generation Internet ETF (ARKW - Free Report) – Up 156.6%
This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to cloud, enabling mobile, new and local services. The fund holds 53 stocks in its basket with AUM of $5.5 billion. It charges 76 bps in annual fees from investors (read: Top ETF Stories of 2020 & Picks for 2021).
WisdomTree Cloud Computing Fund (WCLD - Free Report) – Up 113.4%
This ETF offers exposure to emerging and fast-growing U.S.-listed companies (including ADRs) that are primarily focused on cloud software and services, and follows the BVP Nasdaq Emerging Cloud Index. It holds 54 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $1.3 billion in its asset base and has a Zacks ETF Rank #1 (Strong Buy) (read: 10 Top-Ranked ETFs That Have Outperformed in 2020).
O’Shares Global Internet Giants ETF (OGIG - Free Report) – Up 105.3%
The fund invests in some of the largest global companies that derive most of their revenues from the Internet and e-commerce sectors that exhibit quality and growth potential by tracking the O’Shares Global Internet Giants Index. It holds a basket of 75 stocks and charges 48 bps in annual fees. OGIG has been able to attract $706.7 million in its asset base.
Waitr Holdings Inc. – Up 900%
This company provides an online food ordering and delivery platform. The stock has estimated earnings growth of 113.9% for this year and a market cap of $357.4 million. It has a Zacks Rank #2 (Buy) and Growth Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It offers products and solutions for mobile operators, device OEMs and third parties. With a market cap of $5.2 billion, the stock has an estimated earnings growth rate of 215% for fiscal year (ending March 2021). Digital Turbine has a Zacks Rank #2 and a Growth Score of A.
This company is a leading developer and provider of innovative wearable technologies and solutions for integration into head-worn computing and display systems to military, industrial and consumer customers. It has estimated earnings growth of 75.7% for this year. Kopin has a Zacks Rank #2 and Growth Score of A (read: Top-Performing E-Commerce ETFs & Stocks of 2020).
It is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. With a market cap of $48.9 billion, the stock has estimated earnings growth of 152.4% for fiscal year (ending January 2021). CrowdStrike has a Zacks Rank #2 and Growth Score of B.
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Tech Tops in 2020: ETFs & Stocks That More Than Doubled
Technology has been the best-performing sector of this year amid the pandemic. This is especially true as S&P 500 Information Technology climbed 42.6% when compared to the gains of 15.6% for the S&P 500 Index (read: 5 Sector ETFs That Beat the Market in 2020).
The COVID-19 pandemic has led to a global digital shift, which has accelerated e-commerce for everything ranging from remote working to entertainment and shopping. The recent resurgence in coronavirus cases and the second wave of lockdowns continued to fuel demand for Internet. Additionally, the rapid adoption of big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication and 5G technology is driving the sector higher.
Further, the prospect of a divided government with the president elect Joe Biden also strengthened optimism in the sector. This is because the scenario will limit the new legislation and dim the prospect of an antitrust breakup of mega-cap tech companies.
Given this, we have highlighted four ETFs & stocks that are at the forefront of the broad market rally this year.
ARK Innovation ETF (ARKK - Free Report) – Up 159.3%
It is an actively managed fund seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. The fund holds 48 securities in its basket and charges 75 bps in annual fees. The product has gathered $19.1 billion in its asset base.
ARK Next Generation Internet ETF (ARKW - Free Report) – Up 156.6%
This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to cloud, enabling mobile, new and local services. The fund holds 53 stocks in its basket with AUM of $5.5 billion. It charges 76 bps in annual fees from investors (read: Top ETF Stories of 2020 & Picks for 2021).
WisdomTree Cloud Computing Fund (WCLD - Free Report) – Up 113.4%
This ETF offers exposure to emerging and fast-growing U.S.-listed companies (including ADRs) that are primarily focused on cloud software and services, and follows the BVP Nasdaq Emerging Cloud Index. It holds 54 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $1.3 billion in its asset base and has a Zacks ETF Rank #1 (Strong Buy) (read: 10 Top-Ranked ETFs That Have Outperformed in 2020).
O’Shares Global Internet Giants ETF (OGIG - Free Report) – Up 105.3%
The fund invests in some of the largest global companies that derive most of their revenues from the Internet and e-commerce sectors that exhibit quality and growth potential by tracking the O’Shares Global Internet Giants Index. It holds a basket of 75 stocks and charges 48 bps in annual fees. OGIG has been able to attract $706.7 million in its asset base.
Waitr Holdings Inc. – Up 900%
This company provides an online food ordering and delivery platform. The stock has estimated earnings growth of 113.9% for this year and a market cap of $357.4 million. It has a Zacks Rank #2 (Buy) and Growth Score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Digital Turbine Inc. (APPS - Free Report) – Up 721.6%
It offers products and solutions for mobile operators, device OEMs and third parties. With a market cap of $5.2 billion, the stock has an estimated earnings growth rate of 215% for fiscal year (ending March 2021). Digital Turbine has a Zacks Rank #2 and a Growth Score of A.
Kopin Corporation (KOPN - Free Report) – Up 588.1%
This company is a leading developer and provider of innovative wearable technologies and solutions for integration into head-worn computing and display systems to military, industrial and consumer customers. It has estimated earnings growth of 75.7% for this year. Kopin has a Zacks Rank #2 and Growth Score of A (read: Top-Performing E-Commerce ETFs & Stocks of 2020).
CrowdStrike Holdings Inc. (CRWD - Free Report) – Up 343.4%
It is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. With a market cap of $48.9 billion, the stock has estimated earnings growth of 152.4% for fiscal year (ending January 2021). CrowdStrike has a Zacks Rank #2 and Growth Score of B.
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 >>