5 Best Sector ETFs Of October With Double-Digit Returns
Zacks Investment Research | Oct 30, 2019 11:45PM ET
October has been kind to the U.S. stock market thanks to U.S.-China trade progress, better-than-expected corporate earnings and a third Fed rate cut.
U.S. President Trump said that negotiations for the so-called phase one of the trade deal with China were “ahead of schedule.” The Office of the U.S. Trade Representative said that Washington will consider extending certain tariff exclusions on $34 billion worth of imports from China. In fact, the combination of factors pushed the S&P 500 to new all-time highs lately.
That said, a few sector ETFs have outperformed the market. Below we have highlighted five such ETFs that have raked in substantial gains in October and could be better plays if the trend prevails.
Invesco Shipping ETF (TSX:SEA) – Up 13.9%
The shipping ETF has emerged as the winner in October buoyed by a record-high tanker rates amid a spike in geopolitical uncertainty. Notably, the U.S. sanctions on two units of a Chinese shipping company in September, which put part of its fleet of oil carriers off-limits to traders, led to the rally. This ETF follows the Dow Jones Global Shipping Index, which measures the performance of high dividend-paying companies in the global shipping industry. It is home to 25 stocks with heavy concentration on the top firm. The fund has AUM of $48.3 million and charges 66 bps in annual fees. It trades in average daily volume of 28,000 shares.
ALPS Medical Breakthroughs ETF (SI:SBIO) – Up 12.4%
Biotech ETFs surged on a string of positive news flow, including trial results and deal activities. Most notably, Biogen (NASDAQ:BIIB) has spread optimism into the sector following its Alzheimer treatment report. Better-than-expected corporate earnings added to the strength. While most biotech ETFs have gained, SBIO led the way higher. This fund provides exposure to companies with one or more drugs in Phase II or Phase III FDA clinical trials by tracking S-Network Medical Breakthroughs Index. It holds 78 securities in its basket with none accounting for more than 5.1% share. The product charges 50 basis points in fees per year from investors and trades in a moderate average daily volume of about 34,000 shares. It has AUM of $172.1 million in its asset base and has a Zacks ETF Rank #3 with a High risk outlook (read: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.