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Best-Performing ETFs of Last Week

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U.S. stocks were on a stellar ride last week mainly driven by more encouraging news on the COVID-19 vaccine front. This is especially true as new candidates from Novavax (NVAX - Free Report) and Merck (MRK - Free Report) have joined the race (read: Race for Coronavirus Vaccine Heats Up: Biotech ETFs to Gain).

Additionally, reopening of some states has resulted in a pick-up in economic activities, which were otherwise halted due to coronavirus-led lockdowns. The latest bouts of data indicate that economic damage from the coronavirus pandemic was less severe than anticipated. Jobless claims fell for the first time during the pandemic era in the week ended May 23 while readings on durable goods beat forecast.

Most notably, the Dow Jones Industrial Average topped 25,000 and the S&P 500 breached 3,000 for the first time in more than two months. The strong performance defied the popular adage “Sell in May and Go Away.”

While the rally was broad-based, airline and banking industry led the way higher. Easing of restrictions, reopening of the economy and new safety measures have led to the resumption of flights in many countries, thereby pushing up air stock prices. As the economy is regaining its footing and oil price soared more than 80%, bank stocks also moved high on hopes of increased liquidity.

As such, we highlight the best-performing ETFs of last week.

Principal Sustainable Momentum Index ETF – Up 13.7%

This ETF seeks to invest in companies with the highest momentum scores and uses a modified-equal weighted approach for diversification. It follows the Nasdaq U.S. Sustainable Momentum Index and holds 137 securities in its basket. The product has accumulated $4.1 million in its asset base while trades in average daily volume of 1,000 shares. It charges 29 bps in annual fees.

U.S. Global Jets ETF (JETS - Free Report) – Up 10.1%

This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. In total, the product holds 34 securities and charges investors 60 bps in annual fees. The fund has gathered $936.4 million in its asset base while sees solid trading volume of nearly 1.7 million shares a day. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Should You Buy Airline Stocks & ETF Upon Takeoff?)

Invesco KBW Bank ETF (KBWB - Free Report) – Up 9.5%

This fund provides exposure to 25 companies primarily engaged in U.S. banking activities by tracking the KBW Nasdaq Bank Index. With AUM of $410.6 million, it holds 25 stocks in its basket and trades in solid volume of 480,000 shares per day on average. It charges 35 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

SPDR S&P Aerospace & Defense ETF (XAR - Free Report) – Up 8.9%

XAR offers equal-weight exposure to 34 companies in the aerospace & defense segment. It follows the S&P Aerospace & Defense Select Industry Index, charging 35 bps in annual fees from investors. The fund has been able to manage $1.3 billion in its asset base and trades in average daily volume of 283,000 shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Invesco S&P SmallCap Materials ETF (PSCM - Free Report) – Up 8.2%

This fund offers exposure to companies that are principally engaged in producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals. It follows the S&P SmallCap 600 Capped Materials Index, holding 37 securities in its basket. From an industrial look, chemicals takes the largest share at 58.4% followed by metals & mining (23.5%) and paper & forest products (15.4%). The fund has AUM of $9.4 million and trades in volume of 2,000 shares a day on average. It charges 29 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: 5 Sector ETFs at the Forefront of the Small-Cap Rally).

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