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The year so far has been a good one for the U.S. stock market amid bouts of woes and uncertainties. This is especially true as Wall Street logged in the strongest performance in decades in the first half of the year. The S&P 500 jumped 17% — its best first-half performance since 1997 — while the Dow climbed 14%, its best show since 1999. Meanwhile, the Nasdaq Composite Index skyrocketed more than 20%, recording its best first six months of the year since 2003 (read: S&P 500 Hits New High: 10 Top-Performing ETFs YTD).
Though trade war jitters, global growth concerns, recession fears, government shutdown, geopolitical tension and weak corporate earnings weighed on stocks, the rally was powered by hopes of easing money policies. The Fed signaled rate cuts in the near term that led to renewed confidence in the slowing economy. Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Additionally, recovery in U.S. housing market, rising oil price and the wave of mergers & acquisitions added to the strength.
While there are winners in many corners of the space, a few have easily crushed the Wall Street returns. In fact, they have generated more than double the returns of the S&P 500. We have highlighted them that skyrocketed more than 30% in the year-to-date timeframe (read: Top ETF Stories of 1H).
These funds focus exclusively on U.S. equities and deserve the attention of investors seeking a domestic tilt to their portfolio ahead of the Jul 4 holiday.
The biotech sector has been on the mend amid ongoing industry consolidation and attractive valuations. Particularly, the surge in demand for artificial intelligence for the advancement of diagnoses and treatment across the health care spectrum has been driving this ETF. This is an actively managed ETF, focusing on companies likely to benefit from the extension and enhancement of the quality of human and other life by incorporating technological and scientific developments plus improvements and advancements in genomics into their business. With AUM of $448.4 million, the fund holds 37 stocks in its basket and has 0.75% in expense ratio. It trades in average daily volume of 149,000 shares and has soared 42% this year so far (read: 5 Sector ETFs That Beat the Market in the First Half).
This product has been powered by a solar surge. It provides exposure to U.S. companies engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds about 38 stocks in its basket with none holding more than 3.12% of the total assets. The fund has AUM of $175 million in its asset base and sees a good volume of nearly 37,000 shares a day. It charges 70 bps in annual fees and has gained 41.7% so far this year.
The technology sector has been the biggest beneficiary of the broad market rally, attributable to the anticipation of a trade deal and the Fed’s more dovish-than-expected view. In fact, PTF, which provides exposure to the companies with relative strength (momentum), has been leading the pack. It follows the Dorsey Wright Technology Technical Leaders Index and holds 39 securities in its basket. This ETF is illiquid and relatively unpopular with AUM of $213.4 million and average daily volume of 23,000 shares. It charges 60 bps in annual fees and has rallied 41.2%. The product has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: S&P 500 Hits New High to Start 2H: Top-Ranked ETFs to Buy).
This ETF has been surging on a slew of blockbuster IPOs. This fund provides exposure to the largest and most-liquid newly listed companies by tracking the Renaissance IPO Index. It currently holds 64 stocks in its basket, with each accounting for less than 9.5% exposure. Technology is the top sector accounting for 36% share while communication services and real estate round off the next two spots with double-digit allocation each. The fund has amassed $52.2 million in its asset base while trading in light volume of about 36,000 shares, probably implying additional cost beyond the expense ratio of 0.60%. IPO is up 37.1% so far this year.
Invesco DWA NASDAQ Momentum ETF
In an uptrend market, momentum ETFs perform well compared to others. DWAQ offers exposure to 100 large-cap companies that are showing relative strength (momentum). Healthcare is the top sector accounting for more than one-third share, closely followed by information technology with 29.7% share. The product has accumulated $47.7 million in its asset base and has expense ratio of 0.60%. It trades in average daily volume of 2,000 shares and has gained 35.4% in the year-to-date timeframe.
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5 U.S. ETFs Seeing Fireworks Ahead of July Fourth
The year so far has been a good one for the U.S. stock market amid bouts of woes and uncertainties. This is especially true as Wall Street logged in the strongest performance in decades in the first half of the year. The S&P 500 jumped 17% — its best first-half performance since 1997 — while the Dow climbed 14%, its best show since 1999. Meanwhile, the Nasdaq Composite Index skyrocketed more than 20%, recording its best first six months of the year since 2003 (read: S&P 500 Hits New High: 10 Top-Performing ETFs YTD).
Though trade war jitters, global growth concerns, recession fears, government shutdown, geopolitical tension and weak corporate earnings weighed on stocks, the rally was powered by hopes of easing money policies. The Fed signaled rate cuts in the near term that led to renewed confidence in the slowing economy. Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Additionally, recovery in U.S. housing market, rising oil price and the wave of mergers & acquisitions added to the strength.
While there are winners in many corners of the space, a few have easily crushed the Wall Street returns. In fact, they have generated more than double the returns of the S&P 500. We have highlighted them that skyrocketed more than 30% in the year-to-date timeframe (read: Top ETF Stories of 1H).
These funds focus exclusively on U.S. equities and deserve the attention of investors seeking a domestic tilt to their portfolio ahead of the Jul 4 holiday.
ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report)
The biotech sector has been on the mend amid ongoing industry consolidation and attractive valuations. Particularly, the surge in demand for artificial intelligence for the advancement of diagnoses and treatment across the health care spectrum has been driving this ETF. This is an actively managed ETF, focusing on companies likely to benefit from the extension and enhancement of the quality of human and other life by incorporating technological and scientific developments plus improvements and advancements in genomics into their business. With AUM of $448.4 million, the fund holds 37 stocks in its basket and has 0.75% in expense ratio. It trades in average daily volume of 149,000 shares and has soared 42% this year so far (read: 5 Sector ETFs That Beat the Market in the First Half).
Invesco WilderHill Clean Energy ETF (PBW - Free Report)
This product has been powered by a solar surge. It provides exposure to U.S. companies engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds about 38 stocks in its basket with none holding more than 3.12% of the total assets. The fund has AUM of $175 million in its asset base and sees a good volume of nearly 37,000 shares a day. It charges 70 bps in annual fees and has gained 41.7% so far this year.
Invesco DWA Technology Momentum ETF (PTF - Free Report)
The technology sector has been the biggest beneficiary of the broad market rally, attributable to the anticipation of a trade deal and the Fed’s more dovish-than-expected view. In fact, PTF, which provides exposure to the companies with relative strength (momentum), has been leading the pack. It follows the Dorsey Wright Technology Technical Leaders Index and holds 39 securities in its basket. This ETF is illiquid and relatively unpopular with AUM of $213.4 million and average daily volume of 23,000 shares. It charges 60 bps in annual fees and has rallied 41.2%. The product has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: S&P 500 Hits New High to Start 2H: Top-Ranked ETFs to Buy).
Renaissance IPO ETF (IPO - Free Report)
This ETF has been surging on a slew of blockbuster IPOs. This fund provides exposure to the largest and most-liquid newly listed companies by tracking the Renaissance IPO Index. It currently holds 64 stocks in its basket, with each accounting for less than 9.5% exposure. Technology is the top sector accounting for 36% share while communication services and real estate round off the next two spots with double-digit allocation each. The fund has amassed $52.2 million in its asset base while trading in light volume of about 36,000 shares, probably implying additional cost beyond the expense ratio of 0.60%. IPO is up 37.1% so far this year.
Invesco DWA NASDAQ Momentum ETF
In an uptrend market, momentum ETFs perform well compared to others. DWAQ offers exposure to 100 large-cap companies that are showing relative strength (momentum). Healthcare is the top sector accounting for more than one-third share, closely followed by information technology with 29.7% share. The product has accumulated $47.7 million in its asset base and has expense ratio of 0.60%. It trades in average daily volume of 2,000 shares and has gained 35.4% in the year-to-date timeframe.
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 >>