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Crypto & Clean Energy Top in October: Best ETFs Up At Least 25%

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Wall Street was upbeat in October. The S&P 500 (up 5.7%), the Dow Jones (up 4.35%), the Nasdaq Composite (up 6.40%) and the Russell 2000 (up 2.5%) – all delivered superb performance with large-caps taking the special sheen. Energy rally continued in the month with United States Oil Fund, LP (USO) gaining about 8.7%

The month was loaded with events and data points. The American economy grew an annualized 2% in Q3 of 2021, falling shy of market forecasts of 2.7% and slowing sharply from 6.7% in Q2. It is the weakest growth of pandemic recovery as government support is fading and a surge in Delta-variant related COVID-19 cases and global supply chain issues hurt consumption and production in the period (read: 5 ETFs to Win Despite Downbeat U.S. GDP Growth).

The earnings season has been upbeat. Per Zacks Earnings Trends issued on Oct 20, 2021, for the 69 S&P 500 members that have reported Q3 results through October 20, total earnings and revenues were up +35.3% and +12.9%, respectively from the same period last year, with 87.0% beating EPS estimates and 72.5% beating revenue estimates. The proportion of these 69 index members beating both EPS and revenue estimates is 66.7%.

The month was great from the bitcoin context as the investing world welcome the first U.S.-listed bitcoin futures ETF – ProShares Bitcoin Strategy ETF (BITO). The ETF started trading on Oct 19, making the world’s biggest cryptocurrency available in a tax-efficient wrapper to investors via any brokerage account (read: What You Should Know About Bitcoin ETFs).

Plus, Valkyrie Investments’s bitcoin futures exchange-traded fund also won the green signal of the U.S. Securities and Exchange Commission. The fund (BTF) started trading from Oct 22. VanEck will join ProShares in launching a bitcoin futures exchange-traded fund (XBTF). As a result, bitcoin prices hit an all-time high of $66,000 in October. No wonder, crypto-related companies which focus on the blockchain technology were in the positive zone in the month.

Another winning area was clean energy thanks to the 26th Conference of Parties (COP26) at Glasgow. This summit aims to lower emissions of green house gas and tackle global warming. Against this backdrop, below we highlight a few ETFs that gained handsomely in the past month.

ETFs in Focus

Simplify Volt Cloud and Cybersecurity Disruption (VCLO - Free Report) – Up 41.6%

This ETF is active and does not track a benchmark. The fund looks to focus on those few disruptive companies poised to dominate the new era of the cloud and then enhance the concentrated exposures with options. The fund charges 95 bps in fees.  

Global X Blockchain ETF (BKCH - Free Report) – Up 35.9%

The underlying Solactive Blockchain Index provides exposure to companies that are positioned to benefit from further advances in the field of blockchain technology. The fund charges 50 bps in fees.             

Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) – Up 35.7%

This ETF is active and does not track a benchmark. VCAR concentrates in those few disruptive companies poised to dominate autonomous driving and then enhance the concentrated exposures with options. The fund charges 95 bps in fees.  

Alpha Architect ETF Trust Viridi Cleaner Energy (RIGZ - Free Report) – Up 33.9%

is an actively managed exchange-traded fund focused on the cryptocurrency mining industry. The fund charges 90 bps in fees.            

Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) – Up 33.3%

The underlying Bitwise Crypto Innovators 30 Index measures the performance of companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele. The fund charges 85 bps in fees. 

Vaneck Digital Transformation ETF (DAPP - Free Report) – Up 32%

The underlying MVIS Global Digital Assets Equity Index is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. The fund charges 50 bps in fees.

Solar Invesco ETF (TAN - Free Report) – Up 26.5%

The underlying MAC Global Solar Energy Index is comprised of companies in the solar energy industry. The fund charges 69 bps in fees.