5 ETFs That More Than Doubled S&P 500 This Year
After a sluggish 2018, the Wall Street staged an impressive comeback so far this year, overcoming myriad woes including government shutdown, U.S. recession threats, worsening U.S.-China trade dispute and global growth worries.
The rally was driven by better-than-expected earnings, trade talks and a slew of upbeat economic data. The Federal Reserve played an important role in driving market sentiments. The central bank initially suspended the three-year monetary policy tightening program this year and has now signaled rate cuts if needed. The latest weak job data has stirred speculation on interest rate cuts (read: ETFs Set to Soar on Rate Cuts Signal).
Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Additionally, recovery in U.S. housing market, rising oil price and wave of mergers and acquisitions added to the strength.
While there have been winners in many corners of the space, several ETFs have easily crushed the S&P 500 by wide margins this year. Below, we have presented a bunch of top performing ETFs of 2019 so far that more than doubled the index.
Invesco DWA Technology Momentum ETF PTF – Up 37.9%
This fund follows the Dorsey Wright Technology Technical Leaders Index and provides exposure to technology companies that are showing relative strength (momentum). Holding 39 stocks in the basket, it is well diversified with each constituting less than 7.1% share. The product is illiquid and relatively unpopular with AUM of $190 million and average daily volume of 20,000 shares. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Technology ETF Hits New 52-Week High).
Renaissance IPO ETF IPO – Up 34.1%
This fund provides exposure to the largest and most-liquid newly listed companies by tracking the Renaissance IPO Index. It currently holds 74 stocks in its basket, with each accounting for less than 7% exposure. Technology is the top sector accounting for 36% share while communication services and real estate round off the next two spots with double-digit allocations each. The fund has amassed $46.5 million in its asset base while trading in light volume of about 29,000 shares, probably implying additional cost beyond the expense ratio of 0.60% (read: Blockbuster Beyond Meat IPO Puts These ETFs in Focus).
Invesco WilderHill Clean Energy ETF PBW – Up 32.3%
This product provides exposure to U.S. companies engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds about 38 stocks in its basket with none holding more than 5.5% of the total assets. The fund has AUM of $161.3 million in its asset base and sees a good volume of nearly 37,000 shares a day. Expense ratio comes in at 0.70%.
Global X FinTech ETF FINX – Up 32%
This product invests in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions. It follows the Indxx Global FinTech Thematic Index, holding 36 stocks with each making up for no more than 7.2% share. The fund has AUM of $384.2 million and trades in moderate volume of 151,000 shares a day on average. It charges 68 bps in annual fees (read: 5 Tech ETFs Braving Trade Tensions in May).
ETFMG Prime Mobile Payments ETF IPAY – Up 31.8%
This ETF targets the mobile payments industry and tracks the Prime Mobile Payments Index. It capitalizes on the transition taking place from cash/physical credit card payments to a mobile/digital system, charging investors 75 bps in annual fees. The fund holds 40 stocks in its basket with each accounting for less than 6.4% of the assets. It has amassed $595 million in its asset base and trades in average daily volume of 134,000 shares (read: 5 Top Smart-Beta ETF Charts Amid Trade Tensions).
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ETFMG Prime Mobile Payments ETF (IPAY): ETF Research Reports
Renaissance IPO ETF (IPO): ETF Research Reports
Global X FinTech ETF (FINX): ETF Research Reports
Invesco DWA Technology Momentum ETF (PTF): ETF Research Reports
Invesco WilderHill Clean Energy ETF (PBW): ETF Research Reports
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