Braving all evils of emerging market and trade war fears, the S&P 500 index is on track to record the longest bull run in history. The benchmark is now up for 3,452 days and Aug 22 will mark 3,453 days since the S&P 500 hit its low of 666 on Mar 9, 2009. Since then, the index has risen more than 300% and is up more than 7% so far this year.
The latest rally was driven by strong earnings, booming economic growth and optimism over trade talks between the United States and China. Per Trump, “the United States is on track to hit the highest annual growth rate in over 13 years.”
The U.S. economy has been witnessing the fastest pace of growth in nearly four years thanks to the historic tax cuts, infrastructure investment, higher government spending, deregulation, rising wages, record unemployment, rising consumer confidence and higher spending. A rising rate scenario also signals strengthening economy, which is spurring growth in the stock market.
The wave of mergers and acquisitions also added to the strength. Additionally, the global economy continues to expand at a steady pace despite turmoil in some emerging markets like Turkey and Venezuela.
While there have been winners in many corners of the space, we highlight eight ETFs that have outperformed and gained more than 25% in the year-to-date time frame. These are also expected to continue outperforming, provided the fundamentals remain intact.
ETFs Up More Than 25% YTD: Invesco S&P SmallCap Health Care ETF (PSCH)
Up 41.2%
The Invesco S&P SmallCap Health Care ETF (NASDAQ:PSCH) got a dual boost from its sector’s non-cyclical nature and its small-cap focus. Small-cap stocks are well insulated from international headwinds and are considered safe and better plays if any political issue or economic turmoil creeps into the picture.
Additionally, encouraging sector fundamentals, tax reform, rising M&A activities and positive regulatory backdrop added to the strength. PSCH provides exposure to the health care sector of the U.S. small-cap segment, charging 29 bps in annual fees and has amassed $1 billion in its asset base.
It is home to 70 stocks and sports a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
ETFs Up More Than 25% YTD: SPDR S&P Internet ETF (XWEB)
Up 37.8%
This year gains have been fueled by broad-based technology surge. As such, the SPDR S&P Internet ETF (NYSEARCA:XWEB) has emerged as the winner in the tech space.
It targets the Internet corner, charging 35 bps in annual fees. With AUM of $51.1 million, the fund holds 71 stocks in its basket and carries a Zacks ETF Rank #3 (Hold).
ETFs Up More Than 25% YTD: Invesco Dynamic Software ETF (PSJ)
Up 29.7%
The Invesco Dynamic Software ETF (NYSEARCA:PSJ) provides exposure to 30 software segment of the broader U.S. technology space and holds a small basket of 30 stocks.
It charges 63 bps in annual fees and has AUM of $249.1 million. The product has a Zacks ETF Rank #2 with a High risk outlook.
ETFs Up More Than 25% YTD: ARK Genomic Revolution Multi-Sector ETF (ARKG)
Up 29.4%
The ARK Genomic Revolution Multi-Sector ETF (NYSEARCA:ARKG) is an actively managed ETF focusing on companies that are expected to benefit from extension and enhancement of the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business.
The fund holds 37 stocks in its basket and has accumulated $252.8 million in its asset base. It has 0.75% in expense ratio.
ETFs Up More Than 25% YTD: SPDR S&P Health Care Equipment ETF (XHE)
Up 28.8%
Investors flocking to defensive investment amid trade fears gave a boost to the SPDR S&P Health Care Equipment ETF (NYSEARCA:XHE). This fund offers exposure to the health care equipment segment and holds 71 stocks in its basket.
With AUM of $617.3 million, it charges 35 bps in fees and expenses, and carries a Zacks ETF Rank #3.
ETFs Up More Than 25% YTD: Amplify Online Retail ETF (IBUY)
Up 28.2%
Retail ETFs are benefiting as rounds of upbeat data underscore the economy’s strong fundamentals and consumers’ enthusiasm to spend more.
The massive $1.5-trillion tax cut and deregulation are also boosting confidence among consumers. The twin effects are creating a wealth effect, making the consumer segment a great place to stay invested in.
The Amplify Online Retail ETF (NASDAQ:IBUY) 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 39 stocks and has attracted $527.4 million in its asset base. It charges 65 bps in fees per year.
ETFs Up More Than 25% YTD: ARK Innovation ETF (ARKK)
Up 27.7%
The ARK Innovation ETF (NYSEARCA:ARKK) is an actively managed fund focusing on companies that are expected to benefit from the development of new products or services, technological improvement and advancements in genomic revolution, Web x.0 and industrial innovation.
It holds 45 stocks in its basket and has amassed $1.3 billion in its asset base. The expense ratio comes in at 0.75%.
ETFs Up More Than 25% YTD: SPDR FactSet Innovative Technology ETF (XITK)
Up 27.5%
With AUM of $54.3 million, the SPDR FactSet Innovative Technology ETF (NYSEARCA:XITK) seeks to provide exposure to the most innovative companies with high revenue growth across the technology sector and other industries that deal with technology, such as electronic media.
It holds 97 stocks in its basket and has expense ratio of 0.45%.
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