5 ETF Areas Up At Least 45% In 2019
Zacks Investment Research | Dec 20, 2019 02:00AM ET
We are fast approaching the end of 2019 and it’s been a stellar year so far for the Wall Street. The S&P 500 hit a record high of 3,200 for the first time when just two weeks are left in the calendar year. The index is up now 27.7% (read: Wall Street to See Best Year Since 2013: Will ETF Rally Last? ).
Key events of this year that drove the markets were three Fed rate cuts, massive global policy easing in the second half, announcement of the phase-one U.S.-China trade deal after almost two-years of wrangling, a deal on USMCA and the easing of Brexit uncertainty.
Against this backdrop, below we highlight a few ETF areas that have been the winners in 2019.
Clean Energy
Invesco Solar ETF (LON:TAN) , Invesco WilderHill Clean Energy ETF (NYSE:XLE) Is TAN ETF a Solid Pick for 2020? ).
A transition toward touch their 2020 renewable energy targets . All these explain a rally in clean energy ETFs.
Semiconductor
The phase-one U.S.-China trade deal, a 5G boom and rising consumer spending on technology have propelled the sector. Expectations of higher smartphone sales have given an added boost. IDC expects the smartphone market to record best year since 2009 .
VanEck Vectors Semiconductor ETF FTXL (up 59.2%) have proven to be the clear winners.
Biotech
The Santa rally for the biotech space started long before December, thanks to loads of mergers and acquisitions, positive drug data and FDA approvals. Trade tensions are not likely to have a major impact on biotech. Investors can thus buy Virtus LifeSci Biotech Clinical Trials ETF (ASX:BBC) (up 58.5%) and ALPS Medical Breakthroughs ETF (SI:SBIO) (up 50.8%) deserve special mention.
Palladium
Palladium prices have been on a tear for two years. Pure-play Palladium ETF Aberdeen Standard Physical Palladium Shares ETF eighth consecutive year of deficit in 2019 , according to specialty-chemicals company Johnson Matthey (LON:JMAT), as quoted MarketWatch.
Amid muted supplies, demand has been on the rise on increased consumption of gasoline engines. Stringent emission control norms have been fueling demand for Palladium-using petrol-fueled cars as governments around the world look to fight climate change (read: Will Palladium ETF's 2019 Rally Continue Next Year? ).
Home Building
Low mortgage rates have worked wonders for housing stocks this year. With the Fed being dovish, this rate-sensitive sector has every reason to outperform. Plus, solid corporate earnings and lack of direct correlation with the U.S.-China trade scenario have benefited the sector. iShares U.S. Home Construction ETF (WA:ITB) has added about 48.5% this year(read: After a Stellar 2019, Housing ETFs Set for a Sturdy 2020 ).
Get The News You Want
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Zacks Investment Research
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.