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It’s time for Thanksgiving and Americans are ready for a plate stuffed with food and carts full of shopping. The celebration of bounty and gratitude is in full swing in the investment world as well. Let’s explore it by screening ETFs that have rewarded investors this year.
A few corners have crushed the broader market in the year-to-date period. ETFs — Invesco Alerian Galaxy Crypto Economy ETF (SATO - Free Report) , MicroSectors FANG+ ETN (FNGS - Free Report) , Sprott Uranium Miners ETF (URNM - Free Report) , Fidelity Blue Chip Growth ETF (FBCG - Free Report) and Communication Services Select Sector SPDR Fund (XLC - Free Report) — from different zones have been the star performers so far this year and could be better plays in the coming months. These ETFs deserve special thanks and attention going into the New Year too (see: all the Categories ETF here).
How is the Stock Market Faring?
2023 was full of twists and turns for the U.S. stock market. This is especially true as the stock market wrapped up the first half with big gains, followed by the first quarterly decline in the third quarter in a year. The S&P 500 and the tech-heavy Nasdaq Composite Index slipped into correction territory at the end of October on fears of higher rates for a longer-than-expected period, which pushed up yields to multi-year highs, leading to risk-off trade (read: 5 Inverse Tech ETFs That Rose on Nasdaq Entry Into Correction).
However, the stocks made a solid comeback in November with the S&P 500 Index and the Nasdaq just shy of its record high. The Nasdaq-100 Index has also been enjoying a huge rally from the start of November and has now hit levels not seen in nearly two years.
In fact, November is on track to become the strongest month of the year. The retreat in bond yields, on continued hopes that the Fed’s aggressive interest rate hiking campaign might be nearing an end, has been a significant contributor to the stock rally. Investors are betting that the central bank may be done with hiking. The latest round of data points has also strengthened the idea that the Fed is done with rate hikes.
The so-called “Magnificent Seven” stocks — a collective term for tech giants Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG, GOOGL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA) and Meta Platforms (META) — emerged as the big winners in the stock market for 2023. These seven companies not only dominated but also significantly influenced market trends throughout the year. These make up a record 29% of the S&P 500's market cap and outperformed the rest of the index, with 71% gain compared to just 6% for the other 493 stocks. Their strength lifted the S&P 500 by about 19% this year. The artificial intelligence boom and optimism that the Fed will steer the economy to a soft landing led the astounding rally in these stocks (read: Guide to the Magnificent Seven Stocks & ETFs Investing).
Bitcoin is also among the biggest winners. The world's largest cryptocurrency hit $38,000 for the first time since May 2022, amid anticipation of approval for spot Bitcoin ETF.
Let’s discuss the abovementioned ETFs in detail that have rewarded investors this year:
Invesco Alerian Galaxy Crypto Economy ETF provides exposure to the companies that are materially engaged in cryptocurrency, cryptocurrency mining, cryptocurrency buying, or enabling technologies and exchange-traded products (“ETPs”) and private investment trusts traded over-the-counter that are linked to cryptocurrencies. It follows the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts and ETPs Index, holding 37 stocks in its basket with a higher concentration on the top firm.
Invesco Alerian Galaxy Crypto Economy ETF has accumulated $4.6 million shares and charges 61 bps in annual fees. It trades in a volume of 3,000 shares a day on average.
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: Tech Turns Hot, ETFs Touch New 52-Week Highs).
MicroSectors FANG+ ETN has accumulated $159.6 million in its asset base and charges 58 bps in annual fees. FNGS trades in an average daily volume of 173,000 shares and has a Zacks ETF Rank #3 (Hold).
Sprott Uranium Miners ETF provides exposure to companies involved in the mining, exploration, development and production of uranium, as well as companies that hold physical uranium or other non-mining assets. It follows the North Shore Global Uranium Mining Index and charges investors 83 bps in annual fee.
Sprott Uranium Miners ETF holds 37 stocks in its basket and has AUM of $1.6 billion in its asset base. It trades in a good volume of 1 million shares per day on average.
Fidelity Blue Chip Growth ETF (FBCG - Free Report) – Up 49.5%
Fidelity Blue Chip Growth ETF invests in blue-chip companies (well-known, well-established and well-capitalized), which generally have large or medium market capitalizations. These companies have above-average growth potential (stocks of these companies are often called "growth" stocks). Fidelity Blue Chip Growth ETF holds 162 securities in its basket with double-digit concentration on the top four firms.
Fidelity Blue Chip Growth ETF charges 59 bps in annual fees and trades in an average daily volume of 176,000 shares. It has AUM of $897.7 million.
Communication Services Select Sector SPDR Fund (XLC - Free Report) – Up 48.2%
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services, and has accumulated $14.6 billion in its asset base. It follows the Communication Services Select Sector Index and holds 22 stocks in its basket. About 50% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two.
Communication Services Select Sector SPDR Fund charges 10 bps in annual fees and trades in an average daily volume of 6.6 million shares. It has a Zacks ETF Rank #2.
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5 ETFs Worthy of Special Thanks in 2023
It’s time for Thanksgiving and Americans are ready for a plate stuffed with food and carts full of shopping. The celebration of bounty and gratitude is in full swing in the investment world as well. Let’s explore it by screening ETFs that have rewarded investors this year.
A few corners have crushed the broader market in the year-to-date period. ETFs — Invesco Alerian Galaxy Crypto Economy ETF (SATO - Free Report) , MicroSectors FANG+ ETN (FNGS - Free Report) , Sprott Uranium Miners ETF (URNM - Free Report) , Fidelity Blue Chip Growth ETF (FBCG - Free Report) and Communication Services Select Sector SPDR Fund (XLC - Free Report) — from different zones have been the star performers so far this year and could be better plays in the coming months. These ETFs deserve special thanks and attention going into the New Year too (see: all the Categories ETF here).
How is the Stock Market Faring?
2023 was full of twists and turns for the U.S. stock market. This is especially true as the stock market wrapped up the first half with big gains, followed by the first quarterly decline in the third quarter in a year. The S&P 500 and the tech-heavy Nasdaq Composite Index slipped into correction territory at the end of October on fears of higher rates for a longer-than-expected period, which pushed up yields to multi-year highs, leading to risk-off trade (read: 5 Inverse Tech ETFs That Rose on Nasdaq Entry Into Correction).
However, the stocks made a solid comeback in November with the S&P 500 Index and the Nasdaq just shy of its record high. The Nasdaq-100 Index has also been enjoying a huge rally from the start of November and has now hit levels not seen in nearly two years.
In fact, November is on track to become the strongest month of the year. The retreat in bond yields, on continued hopes that the Fed’s aggressive interest rate hiking campaign might be nearing an end, has been a significant contributor to the stock rally. Investors are betting that the central bank may be done with hiking. The latest round of data points has also strengthened the idea that the Fed is done with rate hikes.
The so-called “Magnificent Seven” stocks — a collective term for tech giants Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG, GOOGL), Amazon (AMZN), Nvidia (NVDA), Tesla (TSLA) and Meta Platforms (META) — emerged as the big winners in the stock market for 2023. These seven companies not only dominated but also significantly influenced market trends throughout the year. These make up a record 29% of the S&P 500's market cap and outperformed the rest of the index, with 71% gain compared to just 6% for the other 493 stocks. Their strength lifted the S&P 500 by about 19% this year. The artificial intelligence boom and optimism that the Fed will steer the economy to a soft landing led the astounding rally in these stocks (read: Guide to the Magnificent Seven Stocks & ETFs Investing).
Bitcoin is also among the biggest winners. The world's largest cryptocurrency hit $38,000 for the first time since May 2022, amid anticipation of approval for spot Bitcoin ETF.
Let’s discuss the abovementioned ETFs in detail that have rewarded investors this year:
Invesco Alerian Galaxy Crypto Economy ETF (SATO - Free Report) – Up 125.9%
Invesco Alerian Galaxy Crypto Economy ETF provides exposure to the companies that are materially engaged in cryptocurrency, cryptocurrency mining, cryptocurrency buying, or enabling technologies and exchange-traded products (“ETPs”) and private investment trusts traded over-the-counter that are linked to cryptocurrencies. It follows the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts and ETPs Index, holding 37 stocks in its basket with a higher concentration on the top firm.
Invesco Alerian Galaxy Crypto Economy ETF has accumulated $4.6 million shares and charges 61 bps in annual fees. It trades in a volume of 3,000 shares a day on average.
MicroSectors FANG+ ETN (FNGS - Free Report) – Up 85.5%
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: Tech Turns Hot, ETFs Touch New 52-Week Highs).
MicroSectors FANG+ ETN has accumulated $159.6 million in its asset base and charges 58 bps in annual fees. FNGS trades in an average daily volume of 173,000 shares and has a Zacks ETF Rank #3 (Hold).
Sprott Uranium Miners ETF (URNM - Free Report) – Up 55.6%
Sprott Uranium Miners ETF provides exposure to companies involved in the mining, exploration, development and production of uranium, as well as companies that hold physical uranium or other non-mining assets. It follows the North Shore Global Uranium Mining Index and charges investors 83 bps in annual fee.
Sprott Uranium Miners ETF holds 37 stocks in its basket and has AUM of $1.6 billion in its asset base. It trades in a good volume of 1 million shares per day on average.
Fidelity Blue Chip Growth ETF (FBCG - Free Report) – Up 49.5%
Fidelity Blue Chip Growth ETF invests in blue-chip companies (well-known, well-established and well-capitalized), which generally have large or medium market capitalizations. These companies have above-average growth potential (stocks of these companies are often called "growth" stocks). Fidelity Blue Chip Growth ETF holds 162 securities in its basket with double-digit concentration on the top four firms.
Fidelity Blue Chip Growth ETF charges 59 bps in annual fees and trades in an average daily volume of 176,000 shares. It has AUM of $897.7 million.
Communication Services Select Sector SPDR Fund (XLC - Free Report) – Up 48.2%
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services, and has accumulated $14.6 billion in its asset base. It follows the Communication Services Select Sector Index and holds 22 stocks in its basket. About 50% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two.
Communication Services Select Sector SPDR Fund charges 10 bps in annual fees and trades in an average daily volume of 6.6 million shares. It has a Zacks ETF Rank #2.