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7 ETFs Offering 20% Plus Returns Since Election

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Thanks to the combination of factors like Trump trade, strongest Q4 earnings growth in two years, solid economic data, and growing prospects of rate hike, the Wall Street has been on a stellar ride with the Dow Jones being the biggest winner.

This is especially true as the benchmark hit three major milestones – 19,000, 20,000 and now 21,000 – since election though bouts of volatility keep blocking the road. In fact, the journey from 20,000 to 21,000 came in just 24 trading sessions, marking the fastest move of 1,000 points since 1999 (read: Trump Sets Bullish Tone: Grab These Top-Ranked ETFs).

Hopes of Trump’s pro-growth policies including big spending, reduced regulations and tax cuts are continuously instilling investors’ confidence in economic growth and inflation. In fact, stocks in a few sectors like financials and industrials have been roaring higher on his policy implementation.     

Additionally, the U.S. economy is clearly on a solid ground buoyed by an impressive labor market, rising wages, slowly rising inflation and increasing consumer spending. Americans have an optimistic view of the economy with confidence hitting the highest level in more than 15 years. Notably, the Conference Board consumer confidence index jumped to 114.8 in February from a revised 111.6 in January, suggesting growing optimism on pro-growth policies.

Total earnings in the fourth quarter reached an all-time quarterly record. Further, the most recent rally was supported by increased chances of a March rate hike, which doubled to 69% as per the latest data from CME Group (read: Yellen Gives Hawkish Signals: 5 ETF Plays).

While the rally has been broad-based, most of the ETFs have piled up huge gains during this period. Below, we have presented some of these that have returned more than 20% since Election Day:

Global X Uranium ETF (URA - Free Report) – Up 41.3%

This ETF provides pure play to a broad range of uranium mining companies by tracking the Solactive Global Uranium Total Return Index. Holding 23 stocks in its basket, it is highly concentrated on the top two firms with a combined 33% share while other firms hold less than 6.4% share each. The ETF has amassed $126 million in its asset base and charges 70 bps in annual fees. Volume is good exchanging 375,000 shares in hand per day on average (read: What's Behind the Surge in Uranium ETF?).

ELEMENTS DJ High Yield Select 10 ETN – Up 35.9%

This is an ETN option and provides investors pure play to the 10 highest dividend-yielding securities in Dow Jones Industrial Average in equal proportions. It tracks the Dow Jones High Yield Select 10 Total Return Index and charges 75 bps in annual fees. The note has amassed only $36.2 million in its asset base while trades in light volume of around 14,000 shares on average daily basis (read: 4 Best Performing ETFs & Stocks of Last Week).

SPDR S&P Regional Banking ETF (KRE - Free Report) – Up 27.8%

This fund targets the banking corner of the financial sector and follows the S&P Regional Banks Select Industry Index. It holds 101 stocks in its basket with none holding more than 3.83% of assets. KRE is one of the largest and the most popular ETFs in the banking space with AUM of $3.6 billion and average daily volume of 7 million shares. It charges 35 bps a year in fees and has a Zacks ETF Rank 1 or ‘Strong Buy’ rating with a High risk outlook (read: Trump Loving ETFs & Stocks for Valentine's Day).

Global X Copper Miners ETF (COPX - Free Report) – Up 24.4%

The ETF targets the global copper mining industry and follows the Solactive Global Copper Miners Total Return Index. Holding 23 stocks in its basket, it is moderately concentrated across components with each accounting for no more than 7.05% of assets. The product has managed $39.5 million in AUM while charges 65 bps in fees per year. It trades in light volume of 47,000 shares a day on average (read: Top and Flop ETF Areas of January 2017).

LocalShares NASHVILLE AREA ETF – Up 23.5%

The fund seeks to track the performance of the Nashville Index which comprises publicly traded U.S. companies that have corporate headquarters in the Nashville, Tennessee region and meet certain requirements regarding capitalization and trading volume. It holds a small basket of 31 stocks with each holding less than 6.5% share. The ETF is unpopular and illiquid with AUM of just $8 million and average daily volume of 1,000 shares. Expense ratio comes in at 0.49%.

PowerShares Dynamic Semiconductors Fund (PSI - Free Report) – Up 21.2%

This product, with AUM of $130 million and average daily volume of around 50,000 shares, follows the Dynamic Semiconductor Intellidex Index, which selects semiconductor stocks on a variety of investment criteria: price momentum, earnings momentum, quality, management action and value. In total, the fund holds a basket of 33 securities with each holding less than 5.2% share. The product charges a fee of 63 bps a year and has a Zacks ETF Rank of 1 with a High risk outlook (read: Semiconductor ETFs Riding High on Q4 Earnings).

iShares U.S. Home Construction ETF (ITB - Free Report) – Up 20.6%

This fund provides a pure play to home construction stocks by tracking the Dow Jones U.S. Select Home Construction Index. It holds a basket of 44 stocks with double-digit allocation going to the top two firms. Other firms hold no more than 8.3% of assets. The product has amassed $1.1 billion in its asset base and trades in heavy volume of around 2.6 million shares a day on average. The ETF charges 44 bps in annual fees and has a Zacks ETF Rank of 1 with a High risk outlook (read: Will Housing ETFs Gain from a Sales Boon or Suffer on Trump Woes?).

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