5 ETFs Up More Than 20% in Three Months

·4 min read

Wall Street has been performing impressively with the major indices climbing to a 12-week high. The rally was mainly powered by optimism over a potential coronavirus vaccine as well as an uptick in the economic activities as lockdown measures loosen. Notably, the S&P 500 is up 38.2% from the March lows while the Dow Jones has gained 28.3%.

In addition, 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.

Consumer confidence stabilized in May as depicted by the Conference Board’s index. Another survey by the University of Michigan’s consumer sentiment index shows that consumer sentiment rose to 73.7 in early May from 71.8 in April as fiscal stimulus measures improved consumers’ finances and widespread price discounting boosted their buying attitude. Homebuilder confidence, as depicted by the National Association of Home Builders/Wells Fargo Housing Market Index rose this month after a record plunge in April (read: Don't "Bet Against the American Economy:" ETF Areas to Win).

Further, a raft of central bank and government stimulus has been fueling growth. The central bank has plenty of ammunition to rescue the economy from a deep slowdown, indicating potential recovery in the second half of the year. The Fed would expand existing lending programs or start new ones if required. However, trade tensions between China and the United States have resurfaced lately and could create some obstacles to the new bull run.

That said, we highlight five ETFs from different corners of the broad market that have outperformed and gained at least 20% over the past three months.

ARK Genomic Revolution Multi-Sector ETF ARKG — Up 32.1%

This is an actively managed ETF, focusing on companies likely to benefit from the extension and enhancement of the quality of human and other life by incorporating technological and scientific developments plus improvements and advancements in genomics into their business. With AUM of $1 billion, the fund holds 36 stocks in its basket and has 0.75% in expense ratio. It trades in average daily volume of 310,000 shares (read: Race for Coronavirus Vaccine Heats Up: Biotech ETFs to Gain).

Amplify Online Retail ETF IBUY – Up 26.8%

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 $367.8 million in its asset base. It charges 65 bps in fees per year and trades in average daily volume of 64,000 shares.

North Shore Global Uranium Mining ETF URNM – Up 25.1%

This fund offers exposure to 25 companies that are involved in mining, exploration, development and production of uranium, as well as companies that hold physical uranium or other non-mining assets. It follows the North Shore Global Uranium Mining Index, charging investors 85 bps in annual fee. The ETF has accumulated $5.6 million in its asset base and trades in paltry volume of 5,000 shares per day on average.

Sprott Gold Miners ETF SGDM – Up 24.5%

This fund follows the Solactive Gold Miners Custom Factors Index, providing exposure to large-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. It holds 30 stocks in its basket with Canadian firm taking the lion’s share at 70.7% followed by 26.8% in the United States. The fund has amassed $225.5 million in its asset base and trades in moderate volume of around 61,000 shares a day. It charges 50 bps in annual fees from investors.

WisdomTree Cloud Computing Fund WCLD – Up 20.7%

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 $143.1 million in its asset base and trades in average daily volume of 73,000 shares (read: Tech Sector Outperforming This Year: Best ETFs, Stocks).

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Sprott Gold Miners ETF (SGDM): ETF Research Reports
Amplify Online Retail ETF (IBUY): ETF Research Reports
ARK Genomic Revolution ETF (ARKG): ETF Research Reports
WisdomTree Cloud Computing ETF (WCLD): ETF Research Reports
North Shore Global Uranium Mining ETF (URNM): ETF Research Reports
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