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Top-Ranked ETF Winners in Dow's Longest Rally in 24 Years

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The progress in U.S.-China trade deal has bolstered optimism in Wall Street since the start of the year. Hopes of a deal between the two largest economies have pushed the Dow Jones to above 26,000 for the first time since Nov 9. In fact, the index has moved up for the ninth consecutive week, marking the longest rally since May 1995.

Meanwhile, the tech-heavy Nasdaq also notched its ninth consecutive week of gains, marking its longest winning streak since May 2009. The Dow Jones has climbed more than 11% so far this year and the Nasdaq is up 9%.

In the latest sign of progress in bilateral trade talks, Donald Trump postponed the date for boosting tariffs on Chinese imports. The Federal Reserve also played an important role in driving market sentiments. The central bank said that it will be patient in raising rates, citing mounting risks to the U.S. economy, including slowdown in Chinese and European economies and waning stimulus from the 2018 tax cuts (read: Rate Sensitive ETFs to Explode Higher Post Fed Minutes).

While there are winners in many corners of the space, some ETFs have crushed the Dow Jones by wide margins in three months. Below we have presented a bunch of those ETFs that are likely to continue outperforming in the coming months as these have potentially superior weighting methodologies and a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).

Invesco Dynamic Software ETF – Up 21.8%

With AUM of $343.1 million, this ETF provides exposure to 29 software segments of the broader U.S. technology space with each accounting for less than 6.3% share. It charges 63 basis points (bps) in annual fees and trades in average daily volume of 62,000 shares. The product has a Zacks ETF Rank #2 with a High risk outlook.

SPDR S&P Software & Services ETF (XSW - Free Report) – Up 21.4%

This fund targets the software and services segment and follows the S&P Software & Services Select Industry Index. It holds 153 stocks in its basket, charging 35 bps in annual fees. XSW has accumulated $175.6 million and trades in paltry volume of 21,000 shares a day on average. It has a Zacks ETF Rank #2 with a High risk outlook (read: 5 ETFs You Can't Help Falling in Love With).

First Trust Technology AlphaDEX Fund (FXL - Free Report) – Up 20.9%

This fund offers exposure to the broad technology sector using the AlphaDEX methodology. In total, it holds 91 securities in its basket with AUM of $2.1 billion. The ETF trades in good average daily volume of 319,000 shares and charges 63 bps in fees per year. It has a Zacks ETF Rank #2 with a Medium risk outlook.

Invesco Russell MidCap Pure Growth ETF – Up 20.2%

This fund tracks the Russell Midcap Pure Growth Index, which is composed of securities with strong growth characteristics selected from the Russell Midcap Index. It holds 95 securities in its portfolio, charging 39 bps in annual fees. The fund has AUM of $423.7 million and average daily volume of about 97,000 shares. It has a Zacks ETF Rank #2 with a Medium risk outlook (read: Why Should You Buy Mid-Cap ETFs Now?).

iShares Expanded Tech-Software Sector ETF (IGV - Free Report) – Up 19.3%

This ETF provides exposure to the software segment in the technology and communication services sectors by tracking the S&P North American Expanded Technology Software Index. Holding a basket of 90 securities, the fund charges 47 bps in annual fees and has AUM of $2.6 billion. Volume is good as it exchanges around 479,000 shares a day. IGV has a Zacks ETF Rank #2 with a High risk outlook (read: Follow Loeb's 13-F Disclosure With ETF & Stock Strategies).

iShares North American Tech-Multimedia Networking ETF – Up 16.4%

This ETF provides concentrated exposure to domestic multimedia networking securities by tracking the S&P North American Technology-Multimedia Networking Index. Holding 21 securities in its basket, the product has accumulated $88.6 million in its asset base, while seeing a lower volume of around 22,000 shares a day. Expense ratio comes in at 0.47%. The fund carries a Zacks ETF Rank #2 with a High risk outlook.

SPDR S&P Internet ETF – Up 14.8%

This product targets the Internet corner of the broad tech space and follows the S&P Internet Select Industry Index. It charges 35 bps in annual fees and trades in volume of 14,000 shares. With AUM of $53.7 million, the fund holds 45 stocks in its basket and carries a Zacks ETF Rank #2 (read: Best ETF Ideas for 2019).

First Trust NASDAQ-100-Technology Sector Index Fund (QTEC - Free Report) – Up 14.3%

This ETF offers broad exposure to the technology sector by tracking the NASDAQ-100 Technology Sector Index. It holds 39 stocks in its basket with AUM of $2.3 billion and average daily volume of around 253,000 shares. It charges 58 bps in annual fees and has a Zacks ETF Rank #2 with a High risk outlook.

VanEck Vectors Biotech ETF (BBH - Free Report) - Up 14.1%

This fund offers exposure to 24 large biotechnology corporations by tracking the MVIS US Listed Biotech 25 Index. It has amassed $415.9 million in its asset base and charges 35 bps in fees per year. The product trades in average daily volume of 21,000 shares and has a Zacks ETF Rank #2 with a High risk outlook (read: What's Behind the Biotech ETF Rally to Start 2019?).

SPDR S&P Aerospace & Defense ETF (XAR - Free Report) – Up 12.7%

This ETF offers equal-weight exposure to 32 stocks by tracking the S&P Aerospace & Defense Select Industry Index. It has been able to manage $1.4 billion in its asset base, while trades in average daily volume of around 214,000 shares. The fund charges 35 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook (read: Why Aerospace & Defense ETFs are Soaring in 2019).

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