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5 Sector ETFs at the Forefront of Wall Street Rally

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The deadly disease, COVID -19, which has led to a bloodbath in the broader stock market in recent weeks seems to be stabilizing with a slowdown in the number of daily coronavirus cases. Per the latest data from Johns Hopkins, there were about 30,000 new cases in the United States on Thursday, 32,100 cases on Friday, and 33,260 cases on Saturday. It then slowed down to just 28,200 new cases on Sunday.

In particular, virus-related deaths declined slightly in New York, the country's biggest coronavirus hot spot. New York State reported 594 new coronavirus deaths on Sunday, fewer than 630 on Saturday, marking the first daily decline in coronavirus-related deaths. The death tolls across Italy, Spain, and France have also started to reduce (read: Healthcare Stocks & ETFs to Gain on Coronavirus Test Progress).

The news has brought much-needed relief to the markets. Additionally, the comments from New York Governor Andrew Cuomo that hospitalizations of coronavirus patients are down and the rate of the rise in deaths has leveled off in the hardest-hit state also added to the strength.

The major U.S. bourses climbed at least 7% with the S&P 500 recovering about $1 trillion in market value in yesterday’s trading session. The gains marked the biggest daily percentage rise for each index since Mar 24. The strength is likely to be maintained in today’s trading session, given a series of positive coronavirus developments in Asia. South Korea reported less than 50 new cases of infection for the second day on a trot. China also posted no new deaths as of Apr 6 for the first time since January when it started publishing daily updates (read: These China ETFs Hardly Felt Any Coronavirus Pain in Q1).

Given the signs of stabilization in the deaths and infections caused by COVID-19, many corners of the stock market rallied. Below, we have highlighted five ETFs from various industries that were at the forefront of the rally and gained in double digits in yesterday’s trading session.

iShares U.S. Home Construction ETF (ITB - Free Report) – Up 13.9%

This ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. It holds a basket of 44 stocks and charges 42 bps in annual fees. Homebuilding takes the top spot at 65.8%, followed by 13% in building products and 10.9% in home improvement retail. The product has amassed $691.6 million in its asset base and trades in heavy volume of around 2.9 million shares a day on average. It charges 42 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Is it Wise to Buy Housing ETFs Right Now?).

Invesco Dynamic Semiconductors ETF (PSI - Free Report) – Up 11.4%

This fund tracks the Dynamic Semiconductor Intellidex Index and offers exposure to companies that are principally engaged in the manufacture of semiconductors. It holds 30 securities in its basket with AUM of $212.5 million and average daily volume of 42,000 shares. Expense ratio is 0.58%. PSI has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.

First Trust Consumer Discretionary AlphaDEX Fund (FXD - Free Report) – Up 11.2%

This follows an AlphaDEX methodology and ranks stocks in the space by various growth and value factors, eliminating the bottom-ranked 25% of the stocks. This approach results in a basket of 119 stocks with specialty retail, hotels & entertainment services, media & publishing, and automobiles & auto parts taking double-digit exposure each. FXD has AUM of $143.5 million and trades in volume of 80,000 shares per day on average. It charges a higher 64 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: ETFs at Risk as US Consumer Sentiment Hits Near 3.5-Year Low).

VanEck Vectors Mortgage REIT Income ETF (MORT - Free Report) – Up 11.1%

This ETF follows the MVIS US Mortgage REITs Index, which measures the performance of U.S. mortgage real estate investment trusts. It holds 26 stocks in its basket with AUM of $77.6 million and average daily volume of 109,000 shares. The product charges 42 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.

ETFMG Prime Mobile Payments ETF (IPAY - Free Report) – Up 10.6%

This ETF targets the mobile payments industry and tracks the Prime Mobile Payments Index. It capitalizes on the transition from cash/physical credit card payments to a mobile/digital system, charging investors 75 bps in annual fees. The fund holds 38 stocks in its basket with AUM of $476.6 million and average daily volume of 245,000 shares.

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