4 Top Ranked Growth ETFs Springing Solid Returns
Zacks Investment Research | Apr 21, 2015 12:41AM ET
Spring is in full swing and economic activity across all the sectors will get a fresh lease of life, driving up overall demand and consumer confidence. The housing market in particular gain momentum with demand building up over the frigid winter for new homes and transportation – a barometer of broad economic health.
This spring brings more promises given solid job growth, rising wages, improving business conditions and of course a higher spending power buoyed by cheap fuel. Notably, consumer spending accounts for more than two-thirds of U.S. economic growth. After a lackluster first quarter, consumer spending will likely pick up in the second quarter.
This is especially true as the U.S. consumer confidence, as measured by the Thomson Reuters/University of Michigan index, climbed to the second highest level in eight years to 95.9 in April from 93 in March. This suggests a strong start to the spring selling season and that consumers are upbeat about economic growth.
Further, the Fed delayed the prospect of the first interest rate hike since 2006, suggesting cheap money flow for another quarter and the potential for further upside in stocks. Oil prices, which were endangering global growth and deflationary pressures, have rebounded strongly in recent weeks while U.S. dollar weakened slightly (read: Can These Top-Ranked Small Cap Growth ETFs Win in 2015? ).
The product has AUM of $4.6 billion and trades in good volume of less than 141,000 shares. VBK is one of the low cost choices, charging just 9 bps in fees per year from investors. The ETF was up nearly 7.7% in the trailing three months and has a Zacks ETF Rank of 1 with a High risk outlook.
Bottom Line
With spring in the air and economic activities stepping up, these top ranked ETFs should continue their upward journey in the coming month beating the broad market index.
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