5 Best-Performing ETFs Halfway Through Q2

cargo ships docked at the pier during day

Global stocks kicked off the second quarter on a strong note thanks to improving economic growth backed by rapid vaccinations, progress on more vaccines and an expanded stimulus. The stronger-than-expected Q1 earnings and solid outlook for the upcoming quarters added to the strength.

However, inflation fears gripped the market in recent weeks leading to a broad sell-off in growth stocks like technology. Rising commodity prices for almost everything from raw materials to food prices to shipping costs have made investors concerned that price pressures will force the central bank to tighten the policies earlier than expected. The latest Fed minutes for the first time revealed the possibility of tapering the asset purchase program if the economy continues to show rapid progress. The central bank is currently buying $80 billion worth of Treasury securities and $40 billion worth of mortgage-backed securities per month (read: Taper Talks to Start Soon? ETFs to Win).

Meanwhile, commodities are on an unstoppable rally on reflation trade and a weaker greenback. China, the world’s largest consumer of raw materials, has been driving commodity prices higher on improving conditions. The world’s second-biggest economy saw a record 18.3% growth in the first quarter of 2021.

Given this, we have highlighted the five best-performing zones and their ETFs halfway through second-quarter 2021:

Shipping

Breakwave Dry Bulk Shipping ETF BDRY has gained the most, surging 58.7% so far this quarter on rising dry bulk shipping rates. As global economies are recovering from the pandemic lows, demand for consumer goods is resulting in a spike in shipping rates. The fund provides exposure to the dry bulk shipping market through a portfolio of near-dated freight futures’ contracts on dry bulk indices. The fund has accumulated about $129.1 million in AUM and trades in a moderate volume of about 1490,000 shares per day on average. It charges a higher annual fee of 3.32% (read: A Deep Dive into the Top Performing ETF).

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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