10 ETFs Crushing The Market To Start 2020

Wall Street extended its decade-long bull run to start the New Year with the major indices hitting new all-time highs. In fact, the Dow Jones crossed the 29,000 milestone while the S&P 500 breached the 3,300 level.

The latest rally was powered by signing of the U.S.-China phase 1 trade deal and Q4 earnings optimism. Additionally, the Fed’s accommodative interest rate policy and a resilient domestic economy have been driving stocks higher. Lower interest rates will keep borrowing costs down, thereby resulting in higher consumer spending and an upswing in economic activities. The U.S. economy has been witnessing steady growth backed by a strong job market, a recovering housing market and higher consumer confidence.

Further, a technology surge is adding to the strength. Though Middle East tensions resulted in some volatility in early 2020, it has abated for now.

While there have been winners in many corners of the space, several ETFs have easily crushed the market by wide margins this year. Below, we have presented a bunch of top-performing ETFs to start 2020 that are likely to continue outperforming, should the trends prevail.

Global X Cannabis ETF (POTX - Free Report) – Up 12%

This ETF seeks to invest in companies across the cannabis industry and tracks the Cannabis Index. It holds 26 stocks in its basket with Canadian firms accounting for 81.7% of assets while the United States takes 10.3% share. The product has accumulated $8.3 million in its asset base within four months of debut and has expense ratio of 0.50%.

Invesco WilderHill Clean Energy ETF (PBW - Free Report) – Up 10.1%

This product provides exposure to 39 U.S. companies engaged in the business of advancement of cleaner energy and conservation. It has AUM of $258.1 million and charges 70 bps in fees per year from investors.

Global X Cybersecurity ETF (BUG - Free Report) – Up 9.8%

This ETF seeks to invest in companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is development and management of security protocol, preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. This can be easily done by the Indxx Cybersecurity Index. Holding 31 securities in its basket, BUG has amassed $2.7 million in its asset base and charges 50 bps in annual fees.

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