4 ETF Areas Hovering Around 52-Week Highs

Wall Street has been hovering around a record high and witnessing remarkable growth across various sectors, with several growth ETFs reaching or nearing their 52-week highs. This trend indicates a broad-based recovery and investor confidence in specific market segments.

In this article, we'll explore four key ETF areas that are currently shining: Semiconductor, Shipping, Nordic Region and Taiwan. These ETFs not only reflect robust market performance but also present intriguing opportunities for investors looking to capitalize on prevailing market trends.

Let's delve a little deeper.

Semiconductor

Strive U.S. Semiconductor ETF SHOC – Up 3.1% on May 28

VanEck Semiconductor ETF SMH – Up 2.3%

Invesco PHLX Semiconductor ETF SOXQ – Up 2.1%

On Tuesday, chipmaker NVIDIA’s NVDA stock surged above $1,100 for the first time, reaching a new milestone. Elon Musk's artificial intelligence startup, xAI, announced on Sunday that it had successfully raised $6 billion in a Series B funding round. Reports suggest that Elon Musk intends to deploy NVIDIA chips for a new "supercomputer" aimed at powering xAI's chatbot named Grok. This news sent the NVIDIA stock and NVIDIA ETFs like SHOC, SMH and SOXQ soaring.

Shipping

U.S. Global Sea to Sky Cargo ETF SEA – Up 2.9%

SonicShares Global Shipping ETF BOAT – Up 2.4%

Shipping stocks have recently surged to new highs, but their long-term performance is even more remarkable. Over the past five years, larger-cap shipping stocks have outperformed the S&P 500 by a factor of two to 10.

As a result, insider wealth from shipping ownership has increased by hundreds of millions of dollars. Geopolitical tensions in the Red Sea, a crucial area for international trade, have sparked a significant shift in the shipping industry, which offered a bullish case for global shipping stocks.

Nordic Region

Norway iShares MSCI ETF ENOR – Up 1.7%

Global X FTSE Nordic Region ETF NORW – Up 1.4%

Energy stocks take about 30% of both funds and hence depend largely on oil price movements. On May 28, 2024, crude oil prices increased by more than $1 per barrel. This rise was driven by expectations that OPEC and its allies (OPEC+) will continue their current crude supply restrictions, along with a weaker U.S. dollar, which made oil more appealing to investors holding other currencies. United States Brent Oil Fund LP BNO has added 16.7% so far this year (as of May 28, 2024).

Taiwan

Taiwan Franklin FTSE ETF FLTW – Up 1.4%

Taiwan iShares MSCI ETF EWT – Up 1.2%

In both the above-mentioned ETFs, information technology takes more than 60% exposure. The top companies of these two ETFs are Taiwan Semiconductor (a key beneficiary of the latest AI boom), Hon Hai Precision and Mediatek. Understandably, the flurry of AI investment has continued to boost optimism over Taiwanese Chip companies’ growth rates.

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NVIDIA Corporation (NVDA) : Free Stock Analysis Report

VanEck Semiconductor ETF (SMH): ETF Research Reports

United States Brent Oil ETF (BNO): ETF Research Reports

iShares MSCI Taiwan ETF (EWT): ETF Research Reports

Global X MSCI Norway ETF (NORW): ETF Research Reports

U.S. Global Sea to Sky Cargo ETF (SEA): ETF Research Reports

iShares MSCI Norway ETF (ENOR): ETF Research Reports

Franklin FTSE Taiwan ETF (FLTW): ETF Research Reports

Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports

SonicShares Global Shipping ETF (BOAT): ETF Research Reports

Strive U.S. Semiconductor ETF (SHOC): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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