5 ETFs to Fall in Love With This Valentine's Day
It seems stock market bulls are showering all their love on the Wall Street this Valentine’s Day. This is especially true as the major bourses are hovering near new all-time highs buoyed by stronger-than-expected earnings, positive development in U.S.-China trade relationship, China stimulus measures, easing policies and slew of upbeat economic data.
In fact, the bulls bravely escaped the Middle East tensions in January and the recent coronavirus threats, which could lead to global slowdown. The solid trend is likely to continue at least in the near term given the resurgence of investors’ confidence in the economy (read: Market Scales New High: Top-Ranked Growth ETFs to Buy).
This is because the labor market was off to a strong start in 2020, creating 225,000 new jobs in January. The manufacturing sector, which had languished in contraction territory for five months, rebounded strongly in January while services sector activity also picked up, with industries reporting increases in new orders. The solid data suggests that the economy could continue to grow moderately this year.
Against this backdrop, several ETFs have been trending higher building up a solid relationship with investors, gaining in double digits. As such, we have highlighted five ETFs that continue to receive investors’ affection in the month of love even amid volatility.
Aberdeen Standard Physical Palladium Shares ETF PALL – Up 25.5%
Palladium continued its last year’s bullish run on growing global demand and stagnating supply. The fund seeks to match the price of palladium. It owns palladium bullion in plate or ingots kept in Zurich or London under the custody of JPMorgan Chase Bank. The product has amassed $374.8 million in its asset base and trades in lower volume of about 39,000 shares a day. It charges 60 basis points (bps) in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Palladium ETF Continues to Surge in 2020: What Lies Ahead?).
Invesco Solar ETF TAN – Up 22.3%
Increased focus on climate change is boosting solar ETF. The fund offers global exposure to 22 solar stocks by tracking the MAC Global Solar Energy Index. U.S. firms dominate the fund’s portfolio with 47.3% share, followed by China (23.2%) and Spain (7.4%). The product has amassed $611.3 million in its asset base and trades in average daily volume of 238,000 shares. It charges investors 71 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
ARK Next Generation Internet ETF ARKW – Up 21.4%
The technology sector has been on a tear on the initial phase of the U.S.-China trade given its huge exposure to China. Additionally, the rapid emergence of cutting-edge technology and the growing adoption of 5G technology are providing further impetus to the space. ARKW is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. It holds 44 stocks in its basket. The ETF has amassed $548.1 million in its asset base and trades in a good average daily volume of around 124,000 shares. The expense ratio comes in at 0.76% (read: TTech ETFs & Stocks Outperforming in 2020).
MicroSectors FANG+ ETN FNGS – Up 19.8%
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly-traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 stocks in its basket in equal proportion. The product has accumulated $39.2 million in its asset base within four months of debut and charges 58 bps in annual fees. It trades in a meager volume of 5,000 shares a day on average.
Global X Lithium & Battery Tech ETF LIT – Up 17.8%
Tesla’s astounding surge has been powering the lithium ETF given its large exposure to the stock. The product provides global exposure to a broad range of firms engaged in lithium mining, refining, and battery production by tracking the Solactive Global Lithium Index. It holds 40 securities in its basket and charges 75 bps in annual fees. U.S. firms dominate the portfolio with 36.5% of assets while Chile, Japan, and South Korea have a double-digit allocation each. From a sector look, the ETF is heavy on materials with 51.2% share, closely followed by industrials (20.5%), consumer discretionary (16.1%), and information technology (12.2%). The fund has amassed $613.4 million in AUM and trades in good volume of nearly 171,000 shares per day (read: 5 ETFs Riding on Tesla's Incredible Surge).
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Invesco Solar ETF (TAN): ETF Research Reports
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
Global X Lithium & Battery Tech ETF (LIT): ETF Research Reports
Aberdeen Standard Physical Palladium Shares ETF (PALL): ETF Research Reports
MICRS-FANG+ (FNGS): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.