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Wall Street has been on a remarkable rally, powered by strong quarterly earnings, economic resiliency and the technology sector surge. The latest phase of the rally is driven by Nvidia’s (NVDA) blockbuster earnings, which pushed the major indexes to key milestones last week.
The blue-chip Dow Jones reached a new record high while the S&P 500 broke above 5,100 for the first time. The tech-heavy Nasdaq Composite Index also touched a new 52-week high. The gains were broad-based and well spread out across various segments.
Some of the top performers in the ETF space from different sectors of the market are First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) , Range Cancer Therapeutics ETF (CNCR - Free Report) , Themes Generative Artificial Intelligence ETF (WISE - Free Report) , First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) and Invesco Building & Construction ETF (PKB - Free Report) .
Nvidia surpassed $2 trillion in market capitalization following its robust results. It exceeded fourth-quarter earnings and revenue expectations. The company reported a staggering 265% increase in revenues and provided an optimistic outlook, indicating a surge in demand for AI hardware. This not only showcased Nvidia's robust position in the AI chip market but also signaled promising prospects for the semiconductor industry in 2025 and beyond (read: Nvidia ETFs to Tap for More Growth Post Blowout Q4 Earnings).
The resilience of the U.S. economy has played a crucial role in the S&P 500's ascent, though it has reduced the likelihood of a near-term rate cut. Factors such as robust retail sales, consumer sentiment and a cooling trend in the producer price index indicate the possibility of the Fed achieving a soft landing, bringing inflation back to target without triggering a recession. This economic resilience, coupled with surging shares of big technology companies and optimism over artificial intelligence, has been a significant driver of the market's upward trajectory.
ETFs in Focus
Let’s dig into the details of the abovementioned ETFs:
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) – Up 60.8%
The world's largest cryptocurrency hit a high of $63,968 — its first trip above $60,000 since November 2021 — with a monthly gain of more than 44%. This represents the biggest monthly gain for Bitcoin since December 2020. The surge primarily came on the back of a surging optimism that demand for the token is widening beyond committed digital-asset enthusiasts. First Trust SkyBridge Crypto Industry and Digital Economy ETF has been the biggest winner (read: Crypto Industry ETF Hits a New 52-Week High).
It is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $43.6 million in its asset base and trades in an average daily volume of 70,000 shares.
Range Cancer Therapeutics ETF (CNCR - Free Report) — Up 23.7%
The healthcare sector is benefiting from cutting-edge medicines, new drug approvals, technological advancements, deal activities and strong earnings. In particular, investor enthusiasm in areas like weight-loss treatments boosted the sector.
Range Cancer Therapeutics ETF offers exposure to a wide range of cancer therapeutic modalities. It follows the Range Cancer Therapeutics Index and holds 80 stocks in its basket. Range Cancer Therapeutics ETF has AUM of $18.8 million and charges 79 bps in annual fees. The fund trades in an average daily volume of 6,000 shares and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
The optimism over artificial intelligence has been driving the stock market higher, thereby benefiting the related ETFs. Themes Generative Artificial Intelligence ETF offers exposure to the companies that derive their revenues from either artificial intelligence, data analytics & big data, natural language processing, and artificial intelligence-driven services. It tracks the Solactive Generative Artificial Intelligence Index and holds 40 stocks in its basket.
Themes Generative Artificial Intelligence ETF has accumulated $5.5 million in its asset base since its inception in December 2023. It charges 35 bps in annual fees and trades in average daily volume of 8,000 shares.
First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) – Up 14.3%
Industrial is the second-best-performing sector of February, gaining 7%. It has emerged as a powerhouse, with nearly half of its S&P 500 components reaching all-time highs, propelled by stalwarts like Waste Management and Caterpillar, and new entrants like Uber Technologies in the Dow Jones Transportation Average.
First Trust RBA American Industrial Renaissance ETF offers exposure to small and mid-cap securities in the industrial and community banking sectors by tracking the Richard Bernstein Advisors American Industrial Renaissance Index. It holds 47 stocks in its basket and charges 70 bps in annual fees. First Trust RBA American Industrial Renaissance ETF has $719.1 million in AUM and trades in a lower volume of around 80,000 shares per day on average. It has a Zacks ETF Rank #3 with a High risk outlook (read: 5 ETFs at All-Time Highs as S&P 500 Rally Continues).
Invesco Building & Construction ETF (PKB - Free Report) – Up 10.2%
The U.S. housing sector has been performing well on solid demand and a lack of existing inventory. The recent decline in mortgage rates has prompted an increase in prospective buyers, leading to an uptick in sales and rising homebuilder confidence. Invesco Building & Construction ETF follows the Dynamic Building & Construction Intellidex Index, holding 3402 well-diversified stocks in its basket (read: Time for Housing ETFs This Spring?).
Invesco Building & Construction ETF has amassed assets worth $339.7 million and sees a lower volume of roughly 25,000 shares per day on average. The expense ratio comes in at 0.62%. Invesco Dynamic Building & Construction ETF has a Zacks ETF Rank #3 with a High risk outlook.
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5 Best-Performing Sector ETFs of February
Wall Street has been on a remarkable rally, powered by strong quarterly earnings, economic resiliency and the technology sector surge. The latest phase of the rally is driven by Nvidia’s (NVDA) blockbuster earnings, which pushed the major indexes to key milestones last week.
The blue-chip Dow Jones reached a new record high while the S&P 500 broke above 5,100 for the first time. The tech-heavy Nasdaq Composite Index also touched a new 52-week high. The gains were broad-based and well spread out across various segments.
Some of the top performers in the ETF space from different sectors of the market are First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) , Range Cancer Therapeutics ETF (CNCR - Free Report) , Themes Generative Artificial Intelligence ETF (WISE - Free Report) , First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) and Invesco Building & Construction ETF (PKB - Free Report) .
Nvidia surpassed $2 trillion in market capitalization following its robust results. It exceeded fourth-quarter earnings and revenue expectations. The company reported a staggering 265% increase in revenues and provided an optimistic outlook, indicating a surge in demand for AI hardware. This not only showcased Nvidia's robust position in the AI chip market but also signaled promising prospects for the semiconductor industry in 2025 and beyond (read: Nvidia ETFs to Tap for More Growth Post Blowout Q4 Earnings).
The resilience of the U.S. economy has played a crucial role in the S&P 500's ascent, though it has reduced the likelihood of a near-term rate cut. Factors such as robust retail sales, consumer sentiment and a cooling trend in the producer price index indicate the possibility of the Fed achieving a soft landing, bringing inflation back to target without triggering a recession. This economic resilience, coupled with surging shares of big technology companies and optimism over artificial intelligence, has been a significant driver of the market's upward trajectory.
ETFs in Focus
Let’s dig into the details of the abovementioned ETFs:
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) – Up 60.8%
The world's largest cryptocurrency hit a high of $63,968 — its first trip above $60,000 since November 2021 — with a monthly gain of more than 44%. This represents the biggest monthly gain for Bitcoin since December 2020. The surge primarily came on the back of a surging optimism that demand for the token is widening beyond committed digital-asset enthusiasts. First Trust SkyBridge Crypto Industry and Digital Economy ETF has been the biggest winner (read: Crypto Industry ETF Hits a New 52-Week High).
It is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $43.6 million in its asset base and trades in an average daily volume of 70,000 shares.
Range Cancer Therapeutics ETF (CNCR - Free Report) — Up 23.7%
The healthcare sector is benefiting from cutting-edge medicines, new drug approvals, technological advancements, deal activities and strong earnings. In particular, investor enthusiasm in areas like weight-loss treatments boosted the sector.
Range Cancer Therapeutics ETF offers exposure to a wide range of cancer therapeutic modalities. It follows the Range Cancer Therapeutics Index and holds 80 stocks in its basket. Range Cancer Therapeutics ETF has AUM of $18.8 million and charges 79 bps in annual fees. The fund trades in an average daily volume of 6,000 shares and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Themes Generative Artificial Intelligence ETF (WISE - Free Report) – Up 14.6%
The optimism over artificial intelligence has been driving the stock market higher, thereby benefiting the related ETFs. Themes Generative Artificial Intelligence ETF offers exposure to the companies that derive their revenues from either artificial intelligence, data analytics & big data, natural language processing, and artificial intelligence-driven services. It tracks the Solactive Generative Artificial Intelligence Index and holds 40 stocks in its basket.
Themes Generative Artificial Intelligence ETF has accumulated $5.5 million in its asset base since its inception in December 2023. It charges 35 bps in annual fees and trades in average daily volume of 8,000 shares.
First Trust RBA American Industrial Renaissance ETF (AIRR - Free Report) – Up 14.3%
Industrial is the second-best-performing sector of February, gaining 7%. It has emerged as a powerhouse, with nearly half of its S&P 500 components reaching all-time highs, propelled by stalwarts like Waste Management and Caterpillar, and new entrants like Uber Technologies in the Dow Jones Transportation Average.
First Trust RBA American Industrial Renaissance ETF offers exposure to small and mid-cap securities in the industrial and community banking sectors by tracking the Richard Bernstein Advisors American Industrial Renaissance Index. It holds 47 stocks in its basket and charges 70 bps in annual fees. First Trust RBA American Industrial Renaissance ETF has $719.1 million in AUM and trades in a lower volume of around 80,000 shares per day on average. It has a Zacks ETF Rank #3 with a High risk outlook (read: 5 ETFs at All-Time Highs as S&P 500 Rally Continues).
Invesco Building & Construction ETF (PKB - Free Report) – Up 10.2%
The U.S. housing sector has been performing well on solid demand and a lack of existing inventory. The recent decline in mortgage rates has prompted an increase in prospective buyers, leading to an uptick in sales and rising homebuilder confidence. Invesco Building & Construction ETF follows the Dynamic Building & Construction Intellidex Index, holding 3402 well-diversified stocks in its basket (read: Time for Housing ETFs This Spring?).
Invesco Building & Construction ETF has amassed assets worth $339.7 million and sees a lower volume of roughly 25,000 shares per day on average. The expense ratio comes in at 0.62%. Invesco Dynamic Building & Construction ETF has a Zacks ETF Rank #3 with a High risk outlook.