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Discover 3 Top-Ranked Overlooked ETFs on Columbus Day
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In 1937, Columbus Day became a federal holiday to mark Christopher Columbus' landing on America's shores in 1492. On this proud occasion this year, why not discover and explore some ETFs that are yet to be popular but have proven their mettle this year by outperforming the S&P 500? These overlooked ETFs appear as hidden gems as the industry is now jampacked with products.
The past nine-month period was especially crucial as it was fraught with heightened geopolitical risks owing to Russia-Ukraine war, zero-Covid policy in China, supply chain woes, sky-high inflation, rising rate worries, fears of global growth slowdown and gradual slump in the commodity market hurt by the strength in the greenback.
In such a situation, it would be prudent to focus on some of the top-ranked but overlooked ETFs which could be great picks on Columbus Day. We are rediscovering for you some overlooked ETFs as most well-known stocks and ETFs are already capped by investors.
The fund hit the market in September 2021 and amassed only $5.9 million in assets. The underlying S&P Kensho Cleantech Index tracks the performance of companies focused on building technologies or products that enable the generation of energy in a clean manner. The United States takes the top spot with about 75% weight, followed by China (13.2%). The fund is down 17% this year, outperforming the S&P 500 (down 23.6%).
The fund even gained 14% in Q3. Clean-energy shares received a boost from the Inflation Reduction Act of 2022. The framework provided $370 billion to combat climate change and would be the biggest climate spending package in U.S. history. It included tax credits for wind, solar, hydrogen, and nuclear energy, and battery storage, among other things (read: What Slump? 4 Sector ETFs Up At Least 14% in Q3).
Invesco S&P 500 Value with Momentum ETF (SPVM - Free Report) – Zacks #2
The fund is an old one in the industry and still amassed only $46.2 million in assets. The underlying index is comprised of 100 securities in the S&P 500 Index having the highest “value scores” and “momentum scores,” calculated pursuant to the index methodology. The fund is down 11.2% this year.
The momentum effect, which refers to the tendency of winning stocks to keep winning, has been documented in many academic studies. Enthusiastic investors love to bet bigger on high fliers, even ignoring fundamentals at times. Investors should note that value ETFs are likely to perform better than growth ETFs currently as the former outperform in a rising rate environment.
Emles Made in America ETF – Zacks #2
The underlying Emles American Manufacturing Index is designed to provide exposure to U.S. equities, predominantly companies headquartered and focused on the production of goods within the United States. The fund hit the market two years ago and hauled in only $1.4 million in assets.
Since the companies of the fund operates domestically, the rising greenback is less likely to hurt the profitability. These companies do not have to the face the long-standing global supply-chain woes. The fund is down 9% this year.
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Discover 3 Top-Ranked Overlooked ETFs on Columbus Day
In 1937, Columbus Day became a federal holiday to mark Christopher Columbus' landing on America's shores in 1492. On this proud occasion this year, why not discover and explore some ETFs that are yet to be popular but have proven their mettle this year by outperforming the S&P 500? These overlooked ETFs appear as hidden gems as the industry is now jampacked with products.
The past nine-month period was especially crucial as it was fraught with heightened geopolitical risks owing to Russia-Ukraine war, zero-Covid policy in China, supply chain woes, sky-high inflation, rising rate worries, fears of global growth slowdown and gradual slump in the commodity market hurt by the strength in the greenback.
In such a situation, it would be prudent to focus on some of the top-ranked but overlooked ETFs which could be great picks on Columbus Day. We are rediscovering for you some overlooked ETFs as most well-known stocks and ETFs are already capped by investors.
ETFs in Focus
ProShares S&P Kensho Cleantech ETF (CTEX - Free Report) – Zacks Rank #2 (Buy)
The fund hit the market in September 2021 and amassed only $5.9 million in assets. The underlying S&P Kensho Cleantech Index tracks the performance of companies focused on building technologies or products that enable the generation of energy in a clean manner. The United States takes the top spot with about 75% weight, followed by China (13.2%). The fund is down 17% this year, outperforming the S&P 500 (down 23.6%).
The fund even gained 14% in Q3. Clean-energy shares received a boost from the Inflation Reduction Act of 2022. The framework provided $370 billion to combat climate change and would be the biggest climate spending package in U.S. history. It included tax credits for wind, solar, hydrogen, and nuclear energy, and battery storage, among other things (read: What Slump? 4 Sector ETFs Up At Least 14% in Q3).
Invesco S&P 500 Value with Momentum ETF (SPVM - Free Report) – Zacks #2
The fund is an old one in the industry and still amassed only $46.2 million in assets. The underlying index is comprised of 100 securities in the S&P 500 Index having the highest “value scores” and “momentum scores,” calculated pursuant to the index methodology. The fund is down 11.2% this year.
The momentum effect, which refers to the tendency of winning stocks to keep winning, has been documented in many academic studies. Enthusiastic investors love to bet bigger on high fliers, even ignoring fundamentals at times. Investors should note that value ETFs are likely to perform better than growth ETFs currently as the former outperform in a rising rate environment.
Emles Made in America ETF – Zacks #2
The underlying Emles American Manufacturing Index is designed to provide exposure to U.S. equities, predominantly companies headquartered and focused on the production of goods within the United States. The fund hit the market two years ago and hauled in only $1.4 million in assets.
Since the companies of the fund operates domestically, the rising greenback is less likely to hurt the profitability. These companies do not have to the face the long-standing global supply-chain woes. The fund is down 9% this year.