3 Thriving ETFs With 500 Fold Increase In 2014
Zacks Investment Research | Dec 24, 2014 11:58PM ET
The global ETF industry has grown rapidly this year hitting a record of $2.76 trillion at the end of November with 1,659 products from 68 providers on three exchanges, as per the data from 3 Promising MLP ETFs Now on Sale ).
VelocityShares Volatility Hedged Large Cap ETF (NYSE:SPXH)
While 2014 is turning out as another banner year for the U.S. stock market, volatility has also been on the rise thanks to global economic slowdown concerns, geopolitical tensions, and lower oil prices. As a result, many investors have taken advantage of the rising volatility while protecting their long equity positions simultaneously by investing in volatility hedged equity ETFs.
Investors should note that the space is not much crowded and most of the products gained greater traction this year. Out of these, SPXH has pulled in over $73 million in capital, propelling its total asset base to $83.3 million. The ETF tracks the VelocityShares Volatility Hedged Large Cap Index and looks to hedge "volatility risk" in the S&P 500, offering investors’ exposure to not only the S&P 500 but also both long and inverse exposure in short-term VIX futures (read: Guide to Dividend Aristocrat ETFs ).
This fund has accumulated about 87% of the AUM as $428 million inflows this year shot up its total asset base to $490.3 million. Expense ratio is 0.35% while average daily volume is moderate at 78,000 shares. The product provides exposure to the companies that raised dividend payments annually for at least 25 years by tracking the S&P 500 Dividend Aristocrats.
Holding 54 stocks in its basket, the fund is widely diversified across securities as each accounts for less than 2.2% share. Consumer staples dominates about one-fourth of the portfolio while industrials, consumer discretionary, and health care round off the next threes pots with double-digit exposure. NOBL surged about 16% on the year and has 30-day SEC yield of 1.84%. It has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a Medium risk outlook.
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