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Bulls are back in the market, with S&P 500 Index rising 20% from the lows seen in October last year. The rally came on the back of an astonishing surge in mega-cap tech stocks fueled by the artificial intelligence (AI) boom and higher appeal for the safe value stocks.
In particular, the rally is concentrated in just a handful of companies, including Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Alphabet (GOOGL, GOOG), Amazon (AMZN), Meta Platforms (META) and Tesla (TSLA). As such, the top ETF performers are from the tech sector and dominating the new bull market over the past six months. These are Valkyrie Bitcoin Miners ETF (WGMI - Free Report) , VanEck Vectors Digital Transformation ETF (DAPP - Free Report) , Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) , Global X Blockchain ETF (BKCH - Free Report) and MicroSectors FANG+ ETN (FNGS - Free Report) .
Inside the New Bull Trend
The AI mania has accelerated into the summer months, pushing key stocks like Nvidia (NVDA) and Microsoft (MSFT) higher. In fact, Nvidia joined the trillion-dollar market capitalization club last month and became the first chipmaker ever to hit the trillion level (read: Nvidia, AI boom & Chip ETFs).
The technology sector was powered by investors’ flight to mega-cap, cash-rich technology stocks amid the regional bank crisis and the rising risk of a recession. The mega-cap tech stocks have strong balance sheet, durable revenue streams and robust profit margins and are, thus, better positioned to withstand a possible economic downturn.
The slowdown in inflation has spurred expectations of easier monetary policy from the Federal Reserve, thereby bolstering the appeal for riskier assets. According to CMEGroup's Fedwatch tool, markets are pricing in a 65% chance that the Fed will pause its historic interest rate hiking campaign in the June meeting. Further, corporate America’s shift of focus to structural benefits and an improving earnings picture have added to the strength.
Let’s dig into the details of the above-mentioned ETFs:
Valkyrie Bitcoin Miners ETF is an actively managed ETF providing exposure to the bitcoin mining industry. WGMI invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining (read: Bitcoin Reclaims $30,000: ETFs to Ride the Rally).
Valkyrie Bitcoin Miners ETF holds 25 stocks in its basket and charges 75 bps in annual fees. It has amassed $10.2 million in its asset base while trading in an average daily volume of 87,000 shares.
VanEck Vectors Digital Transformation ETF (DAPP - Free Report) – Up 73.7%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 22 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 93,000. DAPP has accumulated $36.5 million in its asset base.
Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) – Up 65.3%
Bitwise Crypto Industry Innovators ETF offers exposure to the companies leading the new crypto economy. It tracks the Bitwise Crypto Innovators 30 Index, which measures the performance of the 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 (read: Time to Buy the Dip in Crypto ETFs?).
Holding 27 stocks in its basket, Bitwise Crypto Industry Innovators ETF is concentrated on the top firm. It charges 85 bps in annual fees from investors and trades in an average daily volume of 92,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $74.1 million in its asset base.
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket, with a double-digit allocation to the three top firms.
Global X Blockchain ETF has gathered $68 million in its asset base and trades in an average daily volume of 124,000 shares. It charges 50 bps in annual fees.
MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket (read: 5 ETFs Leading the Tech Outperformance in May).
MicroSectors FANG+ ETN has accumulated $97 million in its asset base and charges 58 bps in annual fees. FNGS trades in an average daily volume of 89,000 shares and has a Zacks ETF Rank #3.
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5 Best Performing ETFs of the New Bull Market
Bulls are back in the market, with S&P 500 Index rising 20% from the lows seen in October last year. The rally came on the back of an astonishing surge in mega-cap tech stocks fueled by the artificial intelligence (AI) boom and higher appeal for the safe value stocks.
In particular, the rally is concentrated in just a handful of companies, including Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Alphabet (GOOGL, GOOG), Amazon (AMZN), Meta Platforms (META) and Tesla (TSLA). As such, the top ETF performers are from the tech sector and dominating the new bull market over the past six months. These are Valkyrie Bitcoin Miners ETF (WGMI - Free Report) , VanEck Vectors Digital Transformation ETF (DAPP - Free Report) , Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) , Global X Blockchain ETF (BKCH - Free Report) and MicroSectors FANG+ ETN (FNGS - Free Report) .
Inside the New Bull Trend
The AI mania has accelerated into the summer months, pushing key stocks like Nvidia (NVDA) and Microsoft (MSFT) higher. In fact, Nvidia joined the trillion-dollar market capitalization club last month and became the first chipmaker ever to hit the trillion level (read: Nvidia, AI boom & Chip ETFs).
The technology sector was powered by investors’ flight to mega-cap, cash-rich technology stocks amid the regional bank crisis and the rising risk of a recession. The mega-cap tech stocks have strong balance sheet, durable revenue streams and robust profit margins and are, thus, better positioned to withstand a possible economic downturn.
The slowdown in inflation has spurred expectations of easier monetary policy from the Federal Reserve, thereby bolstering the appeal for riskier assets. According to CMEGroup's Fedwatch tool, markets are pricing in a 65% chance that the Fed will pause its historic interest rate hiking campaign in the June meeting. Further, corporate America’s shift of focus to structural benefits and an improving earnings picture have added to the strength.
Let’s dig into the details of the above-mentioned ETFs:
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 98.3%
Valkyrie Bitcoin Miners ETF is an actively managed ETF providing exposure to the bitcoin mining industry. WGMI invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining (read: Bitcoin Reclaims $30,000: ETFs to Ride the Rally).
Valkyrie Bitcoin Miners ETF holds 25 stocks in its basket and charges 75 bps in annual fees. It has amassed $10.2 million in its asset base while trading in an average daily volume of 87,000 shares.
VanEck Vectors Digital Transformation ETF (DAPP - Free Report) – Up 73.7%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 22 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 93,000. DAPP has accumulated $36.5 million in its asset base.
Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) – Up 65.3%
Bitwise Crypto Industry Innovators ETF offers exposure to the companies leading the new crypto economy. It tracks the Bitwise Crypto Innovators 30 Index, which measures the performance of the 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 (read: Time to Buy the Dip in Crypto ETFs?).
Holding 27 stocks in its basket, Bitwise Crypto Industry Innovators ETF is concentrated on the top firm. It charges 85 bps in annual fees from investors and trades in an average daily volume of 92,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $74.1 million in its asset base.
Global X Blockchain ETF (BKCH - Free Report) – Up 59.5%
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket, with a double-digit allocation to the three top firms.
Global X Blockchain ETF has gathered $68 million in its asset base and trades in an average daily volume of 124,000 shares. It charges 50 bps in annual fees.
MicroSectors FANG+ ETN (FNGS - Free Report) – Up 51.9%
MicroSectors FANG+ ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket (read: 5 ETFs Leading the Tech Outperformance in May).
MicroSectors FANG+ ETN has accumulated $97 million in its asset base and charges 58 bps in annual fees. FNGS trades in an average daily volume of 89,000 shares and has a Zacks ETF Rank #3.