November was a volatile month for Wall Street as rounds of upbeat earnings fueled strong optimism while rising inflation, a surge in COVID-19 cases and Fed’s taper talks continued to weigh. The Dow Jones tumbled 3.7% while the S&P 500 and the Nasdaq Composite Index dropped 0.8% and 0.25%, respectively. The small-cap Russell 2000 notched its worst month since March 2000, losing nearly 4.3%.
Though the broad markets ended the month in red, a few sector ETFs performed remarkably well. These are iShares Semiconductor ETF ( SOXX Quick Quote SOXX - Free Report) , Simplify Volt Robocar Disruption and Tech ETF ( VCAR Quick Quote VCAR - Free Report) , VanEck Vectors Video Gaming and eSports ETF ( ESPO Quick Quote ESPO - Free Report) , ETFMG Treatments Testing and Advancements ETF ( GERM Quick Quote GERM - Free Report) and iShares U.S. Home Construction ETF ( ITB Quick Quote ITB - Free Report) . The new COVID variant, first detected in South Africa, is now spreading all over the world, causing travel restrictions as well as lockdown measures. Despite the potential disruption by the Omicron variant, Federal Reserve Chair Jerome Powell said the central bank will discuss speeding up the bond-buying taper at its December meeting. The Fed is planning to reduce the pace of monthly bond buying quicker than the $15 billion a month schedule announced earlier last month (read: 4 Defensive ETFs to Play the Post-Thanksgiving Market Crash). Consumer confidence is stronger than expected, hiring has picked up and wages are rising. While inflation is rising at the fastest pace in 30 years, retail sales remain robust. U.S. retail sales in October surged for the third consecutive month and have jumped the maximum since March. The wider reach of vaccinations and COVID-19 boosters will help to reduce infections caused by the new variant of COVID-19. We have highlighted the ETFs in detail below: iShares Semiconductor ETF ( SOXX Quick Quote SOXX - Free Report) – Up 11.5% Semiconductor stocks are benefiting from the global shortage of chips worldwide. The pandemic has bolstered the demand for chips, leading to the worst global shortage in many years. iShares Semiconductor ETF has targeted access to the domestic semiconductor stocks. SOXX offers exposure to companies that design, manufacture and distribute semiconductors. iShares Semiconductor ETF tracks the iShares Semiconductor ETF, holding 30 stocks in its basket. iShares Semiconductor ETF has amassed $9.1 billion in its asset base and charges a fee of 43 bps a year. SOXX trades in a solid volume of 857,000 shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Nvidia ETFs to Buy on Upbeat Q3 Earnings). Simplify Volt Robocar Disruption and Tech ETF ( VCAR Quick Quote VCAR - Free Report) – Up 8.4% Simplify Volt Robocar Disruption and Tech ETF is an actively managed ETF seeking concentrated exposure to the leader of autonomous driving technology and enhancing the concentrated exposure with options. It is heavily exposed to the Tesla (TSLA) stock and Tesla call options at 25% share. Simplify Volt Robocar Disruption and Tech ETF seeks to boost its performance during extreme moves in Tesla, charging investors 0.95% in annual fees. Simplify Volt Robocar Disruption and Tech ETF has accumulated $9.5 million in its asset base while trades in an average daily volume of 34,000 shares. VanEck Vectors Video Gaming and eSports ETF ( ESPO Quick Quote ESPO - Free Report) – Up 5.7% The digitalization coupled with advancements across the gaming industry is fueling growth in the esports market. VanEck Video Gaming and eSports ETF offers exposure to global companies, involved in video game development, e-sports and related hardware and software by tracking the MVIS Global Video Gaming and eSports Index. ESPO holds 26 stocks in its basket. VanEck Video Gaming and eSports ETF is tilted toward American firms, which account for 44.7% of the portfolio, while Japan and China round off the next two with double-digit allocations each. VanEck Video Gaming and eSports ETF has gathered $669 million in its asset base while trading in an average daily volume of 80,000 shares. ESPO charges 55 bps in annual fees from investors. ETFMG Treatments Testing and Advancements ETF ( GERM Quick Quote GERM - Free Report) – Up 5.3% The new variant of COVID-19 has led to higher demand for vaccines and treatments, providing an upside to GERM. ETFMG Treatments Testing and Advancements ETF offers exposure to biotech companies engaged in the testing and treatments of infectious diseases by tracking the Prime Treatments, Testing and Advancements Index. It holds 78 stocks in its basket and charges 68 bps in annual fees (read: Bet On COVID-Themed ETFs as New Cases Rise Globally). ETFMG Treatments Testing and Advancements ETF has amassed $54.4 million in its asset base and trades in an average daily volume of 13,000 shares. iShares U.S. Home Construction ETF ( ITB Quick Quote ITB - Free Report) – Up 5% The thirst for home buying has risen even in the face of increasing housing prices and supply-chain disturbances, thus benefiting homebuilders. iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With AUM of $2.8 billion, it holds a basket of 41 stocks with a heavy concentration on the top two firms. iShares U.S. Home Construction ETF charges 41 bps in annual fees and trades in a heavy volume of around 2.6 million shares a day on average. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook.