We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The ongoing Q4 may be all about Dow Jones Industrial Average and its journey toward the 20,000 mark, but there are several corners which are way ahead of the Dow. So far this quarter (as of December 19, 2016), SPDR Dow Jones Industrial Average ETF (DIA - Free Report) is up 8.7%.
Trump’s pledges of higher fiscal spending and tax cuts mainly acted as tailwinds to Dow’s flight. Specially, the industrial sector has enjoyed special privileges on the President-elect’s plans of increased infrastructure spending (read: DOW ETFs: More Rally Ahead or Have You Missed the Boat?).
But investors should note that there are plenty of other products that have offered about three times or more returns than DIA so far this quarter (as of December 19, 2016). Below we highlight such ETFs in detail:
Barclays Inverse U.S. Treasury Aggregate ETN – Up 60.3%
As widely expected, the Fed raised the benchmark interest rates by a modest 25 bps to the 0.50–0.75% band in mid-December. The Fed also expressed its confidence in the U.S. economy and forecast three rate hikes in 2017, up from two guided in September.
In any case, investors started to position themselves for this hike much before the movement. Also, U.S. Treasury bond yields were on a rise after Trump’s win on hopes of fiscal reflation. All these happenings have pushed up TAPR so far this quarter (as of December 19, 2016) (read: 9 Winning ETF Ways for Those Who Fears Rising Yields).
WisdomTree Japan Hedged Financials Fund – Up 32.2%
The Bank of Japan (BoJ) overhauled its stimulus policy in late September, under which the bank decided to control the bond yield curve. BoJ also indicated then to issue a zero interest-rate target for 10-year government bonds to counter deflationary threats and accordingly buy bonds. No more pushing of rates into the negative territory came as a welcome relief for bank stocks and boosted DXJF. So, the recent dollar strength helped this currency-hedged ETF to a large extent (read: BoJ Stirs Stimulus: Japan ETFs to Win & Lose).
With the U.S. economy growing at an annual clip of 3.2% in Q3, inflation expectations gaining traction and the Fed likely to act faster, long-term rates have higher chances of advancement. And the steepening of the yield curve bolsters profits for banks.
Also, Trump intends to separate the big banks’ commercial and investment banking arms and so smaller-scale regional banks probably notched more gains. If this was not enough, Trump views the Dodd-Frank regulatory revamp as needlessly strict on smaller banks. In anticipation of a lenient regulatory environment, smaller banks soared in Q4 (read: Play Banking Bonanza with These ETFs in Trump World).
Investors should note that several other banking and financial ETFs like SPDR S&P Bank ETF (KBE - Free Report) , PowerShares KBW Bank Portfolio (KBWB - Free Report) , iShares U.S. Regional Banks ETF (IAT - Free Report) First Trust Nasdaq Bank ETF (FTXO - Free Report) and many more have managed to beat the Dow by a wide margin so far this quarter (as of December 19, 2016).
The reassuring November traffic report unveiled by Dallas-based Southwest Airlines, the overall earnings picture and most of the airlines’ efforts to restrain capacity growth must have spurred hopes of improving unit revenues. Probably this is why, the fund has gained about 24.5% so far this quarter (as of December 19, 2016), though it is up a little less by 16.3% from the year-to-date look (read: Brexit or Earnings: What Will Decide the Route Map for Airline ETF?)
Trump’s pledge to invest in infrastructure activities and upgrade the nation’s crumbling roads, bridges and waterways went in favor of steel prices. Also, the implementation of tariffs on steel imports in the U.S. in order to safeguard domestic companies from the adverse impact of cheap supplies from China helped the sector. If these were not enough, bets on tighter supply from China with the country taking measures to ‘cut excess steel capacity’ also pushed up prices in recent sessions (read: 5 ETFs Up Over 100% This Year).
First Trust Dow Jones Select MicroCap Index Fund (FDM - Free Report) – Up 24.5%
The small-cap ETF space is another area that has seen more success than Dow. The small-cap benchmark ETF iShares Russell 2000 (IWM - Free Report) has added about 10.1% so far this quarter (as of December 19, 2016). Trump’s ‘America First’ slogan did a lot to boost small-cap stocks and the related ETFs. Also, as small-cap stocks are less exposed to foreign markets, these were less scathed by a stronger greenback. All these made FDM a winner lately (read: Confident About Trump Rally? Play These Small-Cap Blend ETFs).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
6 ETFs Breezing Past Dow Jones This Quarter
The ongoing Q4 may be all about Dow Jones Industrial Average and its journey toward the 20,000 mark, but there are several corners which are way ahead of the Dow. So far this quarter (as of December 19, 2016), SPDR Dow Jones Industrial Average ETF (DIA - Free Report) is up 8.7%.
Trump’s pledges of higher fiscal spending and tax cuts mainly acted as tailwinds to Dow’s flight. Specially, the industrial sector has enjoyed special privileges on the President-elect’s plans of increased infrastructure spending (read: DOW ETFs: More Rally Ahead or Have You Missed the Boat?).
But investors should note that there are plenty of other products that have offered about three times or more returns than DIA so far this quarter (as of December 19, 2016). Below we highlight such ETFs in detail:
Barclays Inverse U.S. Treasury Aggregate ETN – Up 60.3%
As widely expected, the Fed raised the benchmark interest rates by a modest 25 bps to the 0.50–0.75% band in mid-December. The Fed also expressed its confidence in the U.S. economy and forecast three rate hikes in 2017, up from two guided in September.
In any case, investors started to position themselves for this hike much before the movement. Also, U.S. Treasury bond yields were on a rise after Trump’s win on hopes of fiscal reflation. All these happenings have pushed up TAPR so far this quarter (as of December 19, 2016) (read: 9 Winning ETF Ways for Those Who Fears Rising Yields).
WisdomTree Japan Hedged Financials Fund – Up 32.2%
The Bank of Japan (BoJ) overhauled its stimulus policy in late September, under which the bank decided to control the bond yield curve. BoJ also indicated then to issue a zero interest-rate target for 10-year government bonds to counter deflationary threats and accordingly buy bonds. No more pushing of rates into the negative territory came as a welcome relief for bank stocks and boosted DXJF. So, the recent dollar strength helped this currency-hedged ETF to a large extent (read: BoJ Stirs Stimulus: Japan ETFs to Win & Lose).
SPDR S&P Regional Banking ETF (KRE - Free Report) – Up 30.8%
With the U.S. economy growing at an annual clip of 3.2% in Q3, inflation expectations gaining traction and the Fed likely to act faster, long-term rates have higher chances of advancement. And the steepening of the yield curve bolsters profits for banks.
Also, Trump intends to separate the big banks’ commercial and investment banking arms and so smaller-scale regional banks probably notched more gains. If this was not enough, Trump views the Dodd-Frank regulatory revamp as needlessly strict on smaller banks. In anticipation of a lenient regulatory environment, smaller banks soared in Q4 (read: Play Banking Bonanza with These ETFs in Trump World).
Investors should note that several other banking and financial ETFs like SPDR S&P Bank ETF (KBE - Free Report) , PowerShares KBW Bank Portfolio (KBWB - Free Report) , iShares U.S. Regional Banks ETF (IAT - Free Report) First Trust Nasdaq Bank ETF (FTXO - Free Report) and many more have managed to beat the Dow by a wide margin so far this quarter (as of December 19, 2016).
U.S. Global Jets ETF (JETS - Free Report) – Up 24.5%
The reassuring November traffic report unveiled by Dallas-based Southwest Airlines, the overall earnings picture and most of the airlines’ efforts to restrain capacity growth must have spurred hopes of improving unit revenues. Probably this is why, the fund has gained about 24.5% so far this quarter (as of December 19, 2016), though it is up a little less by 16.3% from the year-to-date look (read: Brexit or Earnings: What Will Decide the Route Map for Airline ETF?)
VanEck Vectors Steel ETF (SLX - Free Report) – Up 24.5%
Trump’s pledge to invest in infrastructure activities and upgrade the nation’s crumbling roads, bridges and waterways went in favor of steel prices. Also, the implementation of tariffs on steel imports in the U.S. in order to safeguard domestic companies from the adverse impact of cheap supplies from China helped the sector. If these were not enough, bets on tighter supply from China with the country taking measures to ‘cut excess steel capacity’ also pushed up prices in recent sessions (read: 5 ETFs Up Over 100% This Year).
First Trust Dow Jones Select MicroCap Index Fund (FDM - Free Report) – Up 24.5%
The small-cap ETF space is another area that has seen more success than Dow. The small-cap benchmark ETF iShares Russell 2000 (IWM - Free Report) has added about 10.1% so far this quarter (as of December 19, 2016). Trump’s ‘America First’ slogan did a lot to boost small-cap stocks and the related ETFs. Also, as small-cap stocks are less exposed to foreign markets, these were less scathed by a stronger greenback. All these made FDM a winner lately (read: Confident About Trump Rally? Play These Small-Cap Blend ETFs).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>