Thanks to the pro-growth economic policies of President-elect Trump, the U.S. stock market has been on a torrid run since election. In fact, the major indices hit a series of fresh highs lately with the S&P 500 and Dow Jones gaining about 3% and 4.3%, respectively, so far this month. This justifies the market belief that December is the best performing month for the stocks.

However, with only six trading days left this year, investors are wondering whether this Trump rally can be taken over by Santa. A Santa Claus rally refers to the increase in stock prices in the final week of the calendar year (i.e. between Christmas and New Year’s Day) that extends into the first two days of the New Year. According to the 2016 Stock Trader’s Almanac, the Santa Claus rally has yielded average cumulative returns of 1.4% in 34 of the past 45 holiday seasons over the seven-day period since 1969.

Santa Yet to Arrive: Reasons

Given the encouraging macro trends and investors’ increased appetite for riskier assets (i.e. equities over bonds), Santa seems to be coming to the stock market this year as well. Though good tidings have already started flowing in thanks to Trump, year-end seasonal factors such as holiday optimism, tax-related affairs, investment of Christmas bonuses, mutual fund manager window dressing, and the “January effect” will continue to push stocks higher (read: S&P 500 On A Bull Run: Bet on Leveraged ETFs for 2017).

Additionally, a slew of upbeat economic data on employment, manufacturing, housing, consumer spending, and GDP growth supports the Santa Claus rally. In particular, consumer sentiment in early December rose to the highest level since January 2015, according to the University of Michigan. The Fed’s second lift-off in a decade and its hawkish stance for 2017 infused optimism in the market, indicating that the economy is on a strong footing and that the stocks will move up further.

Given continued bullish sentiments, we strongly believe that there will be a Santa Rally. While most of the ETFs and stocks will see a nice boost, we have highlighted those that are expected to outperform in the seven-day period and are intriguing choices for a short spell. Notably, high beta and high momentum products are expected to lead the market in the weeks ahead.

This is because high beta funds experience larger gains than the broader market counterparts in a bullish market. On the other hand, momentum investing looks to capture profits from buying hot stocks, which have shown an uptrend over a few weeks or a few months.

ETFs to Buy

PowerShares S&P 500 High Beta Portfolio (SPHB Quick QuoteSPHB - Free Report)

This ETF tracks the performance of 98 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 of them holds more than 2.13% of total assets. About 30% of the portfolio is allotted to financials and energy each while information technology rounds off the top three with 11% of assets. It has amassed $574.7 million in its asset base and charges 0.25% in expense ratio. The ETF has gained 2.3% so far this month.

iShares Edge MSCI USA Momentum Factor ETF (MTUM Quick QuoteMTUM - Free Report)

This ETF follows the MSCI USA Momentum Index, holding 123 stocks exhibiting a relatively higher price momentum. It is pretty well spread out across components with none holding more than 5.03% of assets. The ETF is skewed toward information technology sector at 38.8% while healthcare, consumer staples and industrials round off the next three positions. It has accumulated $1.8 billion in its asset base while trades in solid volume of about 231,000 shares a day. It charges 15 bps in fees per year and has gained 4.1% so far this month (read: Should You Play Market Zest with These Momentum ETFs?).

PowerShares DWA Tactical Sector Rotation Portfolio

This is an ETF of ETFs tracking the Dorsey Wright Sector 4 Index, which offers exposure to the strongest relative strength sectors in the US through the universe of nine PowerShares DWA sector Momentum ETFs. DWTR holds 4 ETFs –– PRN, PFI, PXI and PTF –– and charges 75 bps in annual fees. It has AUM of $166.5 million and average daily volume of 43,000 shares. The product is up 2.7% so far this month.

ELEMENTS SPECTRUM Large Cap U.S. Sector Momentum Index ETN

This is an ETN option having a unique momentum strategy that seeks to increase exposure to the sub-indices that outperform the S&P 500 while reduce allocations of underperformers. The note comes with a cash payment at the scheduled maturity or early redemption based on the performance of the SPECTRUM Large Cap U.S. Sector Momentum Index. The ETN charges a higher 75 bps in fees per year. Though it is unpopular and illiquid with just $2 million in AUM and average daily volume of under 1,000 shares, it has added about 3.5% so far this month.

Stocks to Buy

For stocks, we have chosen top picks using the Zacks Screener that fits our five criteria: a Zacks Rank #1 (Strong Buy) or #2 (Buy), market cap of over 1 billion, beta greater than 2, Zacks Industry Rank within the top 30% and positive four-week price change. Here are the four chosen stocks (read: 5 ETFs Up Over 100% This Year).

Advanced Micro Devices Inc. (AMD Quick QuoteAMD - Free Report)

Based in Sunnyvale, California, Advanced Micro Devices is a leading semiconductor company engaged in the innovative products and technologies. With a market cap of $10.67 billion and beta of 2.54, the stock has surged 36.7% so far this month. It has a Zacks Rank #2 and a solid Zacks Industry Rank in the top 15%.

AK Steel Holdings

Based in West Chester, Ohio, AK Steel is a leading producer of flat-rolled carbon, stainless, electrical steel products, and stainless tubular steel products that are used in automotive, appliance, construction and manufacturing markets. It has a market cap of $3.43 billion and a beta of 2.65. The stock has a Zacks Rank #2 and falls in the solid Industry with Zacks Rank in the top 17%. It has risen about 16.7% so far this month (read: Steel ETF Looks Promising after Trump Win).

Theravance Biopharma Inc. (TBPH Quick QuoteTBPH - Free Report)

Based in George Town, the Cayman Islands, Seagate Technology is a biopharmaceutical company focused on the discovery, development and commercialization of small molecule medicines across a number of therapeutic areas including bacterial infections, central nervous system (CNS)/pain, respiratory disease, and gastrointestinal (GI) motility dysfunction. It has a market cap of $1.64 billion and a beta of 2.48. The stock has gained 14.5% so far this month and has a Zacks Rank #2. It falls in the industry having a Zacks Rank in the top 30%.

Fairmount Santrol Holdings Inc.

Based in Chesterland, Ohio, Fairmount Santrol provides sand-based proppant solutions for exploration and production companies to enhance the productivity of their oil and gas wells. With market cap of $2.36 billion, the stock has a Zacka Rank #2 and a beta of 2.30. It has a solid Zacks Industry Rank in the top 11%. FMSA is up 10.6% this month.

Bottom Line

These products could be the winning picks for the next few days, as these would generate above higher returns compared to other products when the market is booming.

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 >>