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5 ETFs That Outshined During 100 Days of Coronavirus Pandemic
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It’s been 100 days since the World Health Organization declared COVID-19 a pandemic on Mar 11. The news led to a historic sell-off in the equity markets, ending the biggest U.S. bull market run in the history. In fact, the three major U.S. indices slipped into a bear market in less than a month, representing the fastest-ever bear market.
However, the stocks made a solid comeback from its lows buoyed by a surging technology sector, an unprecedented stimulus from the central bank and the government, and hopes of a potential coronavirus vaccine.
Additionally, the latest bouts of data indicate that the economy has been recovering faster than expected from the COVID-19 pandemic. This is especially true since U.S. retail sales jumped 17.7% in May as states gradually reopened their economies and consumers spent more. Also, industrial production rose 1.4% with the resumption of operations. The United States added 2.5 million jobs in May — the largest monthly gain since the Bureau of Labor Statistics started tracking the data series in 1939. Additionally, in June, homebuilder confidence posted a record jump while consumer sentiment climbed the most since 2016.
Further, the Fed’s latest move to provide liquidity in the markets and the Trump administration’s $1 trillion infrastructure spending package added to the strength. The central bank announced that it would begin purchasing individual corporate bonds as part of its emergency lending program to inject liquidity into the virus-stricken economy (read: Growth ETFs to Soar Higher: Thanks to Fed & Government).
Most notably, the S&P 500 is up about 40% from the late March lows even though U.S.-China trade tensions, civil war and a second wave of COVID-19 infections weighed on investors’ sentiment. While every sector of the market has rallied, information technology and consumer discretionary has been the clear winner during the pandemic.
Below, we have highlighted five ETFs that have easily crushed the S&P 500 defying the pandemic.
First Trust ISE-Revere Natural Gas Index Fund (FCG - Free Report) – Up 70.3%
This fund offers exposure to U.S. stocks that derive a substantial portion of their revenues from the exploration and production of natural gas. It follows the ISE-REVERE Natural Gas Index and holds 34 stocks in its basket. The fund has amassed $97.6 million in its asset base while charging 60 bps in annual fees. Volume is good with 1.3 million shares exchanged per day on average. The product has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Top & Flop ETFs at Half-Way Q2).
WisdomTree Cloud Computing Fund (WCLD - Free Report) – Up 51.9%
This fund offers exposure to emerging, fast-growing U.S.-listed companies (including ADRs) primarily focused on cloud software and services, and follows the BVP Nasdaq Emerging Cloud Index. It holds 52 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $280.8 million in its asset base and trades in average daily volume of 145,000 shares. It has a Zacks ETF Rank #2 (Buy) (read: 5 Niche Tech ETFs That Have Gained More Than 30% in 1H).
This ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund comprises 47 stocks and has attracted $447.7 million in its asset base. It charges 65 bps in fees per year and trades in average daily volume of 81,000 shares.
Franklin Disruptive Commerce ETF (BUYZ - Free Report) – Up 46.5%
This fund has newly debuted in the space and seeks capital appreciation by investing in innovative companies benefiting from transformation in the e-commerce space. It provides access to companies that are related to new online markets, streamlined procurement systems, and game-changing ways to deliver goods and services. The ETF has attracted $5.1 million in its asset base since its debut on Feb 25 and trades in average daily volume of 6,000 shares. It has 60 stocks in its basket and charges 50 bps in annual fees.
TrueShares Technology, AI and Deep Learning ETF (LRNZ - Free Report) – Up 46%
It is an actively managed fund that targets companies with leading-edge artificial intelligence, machine learning, or deep learning technology platforms, algorithms, or applications that is believed to provide distinct competitive advantages in an industry historically characterized by a winner-take-all consolidation behavior. It holds 22 stocks in its basket and charges 68 bps in fees per year. LRNZ has also newly debuted in the space and has amassed $6.5 million in its asset base within four months. It trades in average daily volume of 5,000 shares.
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5 ETFs That Outshined During 100 Days of Coronavirus Pandemic
It’s been 100 days since the World Health Organization declared COVID-19 a pandemic on Mar 11. The news led to a historic sell-off in the equity markets, ending the biggest U.S. bull market run in the history. In fact, the three major U.S. indices slipped into a bear market in less than a month, representing the fastest-ever bear market.
However, the stocks made a solid comeback from its lows buoyed by a surging technology sector, an unprecedented stimulus from the central bank and the government, and hopes of a potential coronavirus vaccine.
Additionally, the latest bouts of data indicate that the economy has been recovering faster than expected from the COVID-19 pandemic. This is especially true since U.S. retail sales jumped 17.7% in May as states gradually reopened their economies and consumers spent more. Also, industrial production rose 1.4% with the resumption of operations. The United States added 2.5 million jobs in May — the largest monthly gain since the Bureau of Labor Statistics started tracking the data series in 1939. Additionally, in June, homebuilder confidence posted a record jump while consumer sentiment climbed the most since 2016.
Further, the Fed’s latest move to provide liquidity in the markets and the Trump administration’s $1 trillion infrastructure spending package added to the strength. The central bank announced that it would begin purchasing individual corporate bonds as part of its emergency lending program to inject liquidity into the virus-stricken economy (read: Growth ETFs to Soar Higher: Thanks to Fed & Government).
Most notably, the S&P 500 is up about 40% from the late March lows even though U.S.-China trade tensions, civil war and a second wave of COVID-19 infections weighed on investors’ sentiment. While every sector of the market has rallied, information technology and consumer discretionary has been the clear winner during the pandemic.
Below, we have highlighted five ETFs that have easily crushed the S&P 500 defying the pandemic.
First Trust ISE-Revere Natural Gas Index Fund (FCG - Free Report) – Up 70.3%
This fund offers exposure to U.S. stocks that derive a substantial portion of their revenues from the exploration and production of natural gas. It follows the ISE-REVERE Natural Gas Index and holds 34 stocks in its basket. The fund has amassed $97.6 million in its asset base while charging 60 bps in annual fees. Volume is good with 1.3 million shares exchanged per day on average. The product has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Top & Flop ETFs at Half-Way Q2).
WisdomTree Cloud Computing Fund (WCLD - Free Report) – Up 51.9%
This fund offers exposure to emerging, fast-growing U.S.-listed companies (including ADRs) primarily focused on cloud software and services, and follows the BVP Nasdaq Emerging Cloud Index. It holds 52 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $280.8 million in its asset base and trades in average daily volume of 145,000 shares. It has a Zacks ETF Rank #2 (Buy) (read: 5 Niche Tech ETFs That Have Gained More Than 30% in 1H).
Amplify Online Retail ETF (IBUY - Free Report) – Up 51.5%
This ETF offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund comprises 47 stocks and has attracted $447.7 million in its asset base. It charges 65 bps in fees per year and trades in average daily volume of 81,000 shares.
Franklin Disruptive Commerce ETF (BUYZ - Free Report) – Up 46.5%
This fund has newly debuted in the space and seeks capital appreciation by investing in innovative companies benefiting from transformation in the e-commerce space. It provides access to companies that are related to new online markets, streamlined procurement systems, and game-changing ways to deliver goods and services. The ETF has attracted $5.1 million in its asset base since its debut on Feb 25 and trades in average daily volume of 6,000 shares. It has 60 stocks in its basket and charges 50 bps in annual fees.
TrueShares Technology, AI and Deep Learning ETF (LRNZ - Free Report) – Up 46%
It is an actively managed fund that targets companies with leading-edge artificial intelligence, machine learning, or deep learning technology platforms, algorithms, or applications that is believed to provide distinct competitive advantages in an industry historically characterized by a winner-take-all consolidation behavior. It holds 22 stocks in its basket and charges 68 bps in fees per year. LRNZ has also newly debuted in the space and has amassed $6.5 million in its asset base within four months. It trades in average daily volume of 5,000 shares.
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 >>