Tezcan Gecgil/Investing.com | Apr 06, 2021 05:22AM ET
The first quarter of 2021 brought new highs to major indices. Meanwhile, as a result of inflationary expectations, the U.S. 10-year Treasury yield recently hit a 52-week high, prompting market jitters as a result of higher inflation expectations.
Today, we review ETFs that were either clear winners or losers in the first three months of the year. However, we have excluded leveraged and inverse ETFs from this list. They are better suited as short-term trades as opposed to long-term investments.
Several of the ETFs mentioned here could possibly inspire readers to put together long-term diversified portfolios within their risk/return parameters. The article should also remind investors of the importance of diversification as part of their personal investment objectives.
Before we move on to the winners and losers, let’s take a look at funds that give exposure to the three most followed US indices. Three ETFs deserve our attention:
SPDR® Dow Jones Industrial Average ETF Trust (NYSE:DIA), which tracks the Dow Jones Industrial Average—up 8.4% YTD (covered here)
SPDR® S&P 500 (NYSE:SPY), which tracks the S&P 500 Index—up 7.1% YTD (covered here)
Invesco QQQ Trust (NASDAQ:QQQ), which tracks the NASDAQ 100 index—up 3.4% YTD (covered here)
Compared to the second half of 2020, especially, the first quarter of the year has seen a decrease in appetite for tech shares and thus the tech-heavy ETF QQQ.
As for the best performers, we’d like to highlight 30 ETFs that have had positive returns so far in 2021. Understandably, it is not a comprehensive list. Given the upcoming earnings season, there could be volatility and profit-taking in some of these funds as investors take money off the table.
Below, 20 ETFs that have recently given up some of their returns from 2020. Those investors who are interested in buying the dips could possibly put them on their radar.
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