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.
Continuing the Trump rally, the month of February ushered in strong gains. Especially, hopes of fat spending on the U.S. infrastructure and defense sectors, tax cuts and deregulations sent the stocks rallying. Several U.S. indices hit all-time highs. The S&P 500-based ETF (SPY - Free Report) , Dow Jones-based ETF (DIA - Free Report) and Nasdaq 100-based QQQ added in the range of 3.7% to 4.7% in February.
Also, a slew of upbeat earnings this reporting cycle spurred market movement. Further, things are looking up in Europe and Japan which renewed confidence in global economic growth.
However, slight overvaluation concerns prevailed, keeping some safe haven assets and low-volatility products alive. That said, we have highlighted the three best and worst performing ETFs of February. The data are as per xtf.com (read: February ETF Asset Report: EM Gains, U.S. Loses).
Best ETFs
iPath Dow Jones-UBS Nickel ETN
Nickel prices rose in February as the Philippines launched an environmental clampdown on the mining industry. As part of this crackdown, 21 mines were closed while six pits were suspended. The country is the world’s most significant producer of unprocessed nickel ore and a huge supplier to China, per the source.
If this was not enough, the long-struggling manufacturing sector of China is finally turning around. This gave a boost to the demand outlook of this industrial metal and pushed up prices. Also, Trump’s focus on increasing infrastructure in America has charged up industrial metals somewhat in recent times. As a result, nickel ETN JJN added 18.9% while iPath Pure Beta Nickel ETNNINI advanced about 12.7% in the last one month (as of February 28, 2017).
After some initial glitches, thanks to the price-gouging issue and uncertainty regarding the repealing of Obamacare, healthcare stocks have seen a turnaround. Compelling valuation after the recent sell-off and a somewhat positive meeting between Trump and drug makers did the trick. Trump also indicated that regulatory approvals to pharmaceutical companies would be made easy.
Probably this is why BBC was up 15.1% in the month followed by ALPS Medical Breakthroughs ETF (SBIO - Free Report) (up 14.9%) and SPDR S&P Pharmaceuticals ETF (XPH - Free Report) (up 12.4%).
ELEMENTS DJ High Yield Select 10 ETN
Now who doesn’t know about the sweeping Dow rally? The index scaled its 12th successive high in the month, almost similar to the 1987’s streak of thirteen sessions of record closes. While all the indexes benefited from the Trump bump, Dow Jones emerged as the best-positioned (read: Dow Jones Hits 12th Session of Record High: ETFs in Focus).
As a result, the ETN gained about 14.2% in the month. This ETN provides investors pure play to the 10 highest dividend-yielding securities in Dow Jones Industrial Average in equal proportions.
Last month, natural gas prices plummeted to their lowest level since November on warmer weather in the U.S. As a result, storage levels shrank at a slower-than-expected clip. The fund UNG thus lost about 22.6% in February. The index looks to reflect the daily changes of the price of natural gas delivered at the Henry Hub, Louisiana.
Another natural gas fund, United States 12 Month Natural Gas (UNL - Free Report) shed about 15.9% followed by iPath Bloomberg Natural Gas SubTR ETN (down 14.6%).
Global X MSCI Nigeria ETF
The economy recorded its first yearly reduction in growth in 25 years as Africa’s top oil producer saw economic contraction for the fourth successive quarter of 2016 on oil price issues. So, NGE was down about 9.4% in February.
The energy sector underperformed in the month despite stable oil prices. Several energy funds including (PXI - Free Report) , PowerShares S&P SmallCap Energy ETF (PSCE - Free Report) and iPath Bloomberg Energy SubTR ETNJJE retreated about 8.7%, 8.2% and 7.7%, respectively, in the month (read: Can Oil ETFs Rebound on Possibility of More OPEC Cuts?).
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
Best & Worst ETFs of February 2017
Continuing the Trump rally, the month of February ushered in strong gains. Especially, hopes of fat spending on the U.S. infrastructure and defense sectors, tax cuts and deregulations sent the stocks rallying. Several U.S. indices hit all-time highs. The S&P 500-based ETF (SPY - Free Report) , Dow Jones-based ETF (DIA - Free Report) and Nasdaq 100-based QQQ added in the range of 3.7% to 4.7% in February.
Also, a slew of upbeat earnings this reporting cycle spurred market movement. Further, things are looking up in Europe and Japan which renewed confidence in global economic growth.
However, slight overvaluation concerns prevailed, keeping some safe haven assets and low-volatility products alive. That said, we have highlighted the three best and worst performing ETFs of February. The data are as per xtf.com (read: February ETF Asset Report: EM Gains, U.S. Loses).
Best ETFs
iPath Dow Jones-UBS Nickel ETN
Nickel prices rose in February as the Philippines launched an environmental clampdown on the mining industry. As part of this crackdown, 21 mines were closed while six pits were suspended. The country is the world’s most significant producer of unprocessed nickel ore and a huge supplier to China, per the source.
If this was not enough, the long-struggling manufacturing sector of China is finally turning around. This gave a boost to the demand outlook of this industrial metal and pushed up prices. Also, Trump’s focus on increasing infrastructure in America has charged up industrial metals somewhat in recent times. As a result, nickel ETN JJN added 18.9% while iPath Pure Beta Nickel ETN NINI advanced about 12.7% in the last one month (as of February 28, 2017).
BioShares Biotechnology Clinical Trials (BBC - Free Report)
After some initial glitches, thanks to the price-gouging issue and uncertainty regarding the repealing of Obamacare, healthcare stocks have seen a turnaround. Compelling valuation after the recent sell-off and a somewhat positive meeting between Trump and drug makers did the trick. Trump also indicated that regulatory approvals to pharmaceutical companies would be made easy.
Probably this is why BBC was up 15.1% in the month followed by ALPS Medical Breakthroughs ETF (SBIO - Free Report) (up 14.9%) and SPDR S&P Pharmaceuticals ETF (XPH - Free Report) (up 12.4%).
ELEMENTS DJ High Yield Select 10 ETN
Now who doesn’t know about the sweeping Dow rally? The index scaled its 12th successive high in the month, almost similar to the 1987’s streak of thirteen sessions of record closes. While all the indexes benefited from the Trump bump, Dow Jones emerged as the best-positioned (read: Dow Jones Hits 12th Session of Record High: ETFs in Focus).
As a result, the ETN gained about 14.2% in the month. This ETN provides investors pure play to the 10 highest dividend-yielding securities in Dow Jones Industrial Average in equal proportions.
Worst ETFs
United States Natural Gas Fund UNG
Last month, natural gas prices plummeted to their lowest level since November on warmer weather in the U.S. As a result, storage levels shrank at a slower-than-expected clip. The fund UNG thus lost about 22.6% in February. The index looks to reflect the daily changes of the price of natural gas delivered at the Henry Hub, Louisiana.
Another natural gas fund, United States 12 Month Natural Gas (UNL - Free Report) shed about 15.9% followed by iPath Bloomberg Natural Gas SubTR ETN (down 14.6%).
Global X MSCI Nigeria ETF
The economy recorded its first yearly reduction in growth in 25 years as Africa’s top oil producer saw economic contraction for the fourth successive quarter of 2016 on oil price issues. So, NGE was down about 9.4% in February.
PowerShares DWA Energy Momentum ETF (PXI - Free Report)
The energy sector underperformed in the month despite stable oil prices. Several energy funds including (PXI - Free Report) , PowerShares S&P SmallCap Energy ETF (PSCE - Free Report) and iPath Bloomberg Energy SubTR ETN JJE retreated about 8.7%, 8.2% and 7.7%, respectively, in the month (read: Can Oil ETFs Rebound on Possibility of More OPEC Cuts?).
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 >>