5 American ETFs That Are Seeing Fireworks Post-Pandemic

Image: Shutterstock

The U.S. stock market staged a strong comeback from the pandemic lows thanks to vaccine rollouts, expanded stimulus, healing job market and earnings growth. The combination of factors has resulted in speedy economic recovery and powered activities across all sectors and categories. This has led to increase in consumer spending and confidence.

Americans are now spending on big-ticket items such as vacations and weddings, companies are going on hiring sprees, and the transition to new technologies such as electric vehicles is accelerating. Notably, the S&P 500 saw the second-best start to a year since 1998. It had recovered all of its losses by August 2020 and climbed to new highs. The index is up 38% over the one-year time frame. Though technology powered the rally in the second half of 2020, cyclical sectors have been at the forefront this year.

The solid gains came defying the bouts of woes and uncertainty over the rise in coronavirus cases, elections, Biden tax hike plan and inflation fears.

Below, we discuss a few sector ETFs that have more than doubled in a year. These funds focus exclusively on U.S. equities and deserve the attention of investors seeking a domestic tilt to their portfolio going into the Fourth of July holiday:

Invesco S&P SmallCap Energy ETF (PSCE - Free Report) – Up 150.2%

Energy prices are on a tear on bullish demand and tightening supply. A swift global economic recovery and reopening of economies have spurred energy demand. This fund provides exposure to the U.S. small-cap segment of the energy sector by tracking the S&P Small Cap 600 Capped Energy Index. It holds 33 stocks in its basket with AUM of $213.6 million. The fund trades in an average daily volume of 826,000 shares and charges 29 basis points (bps) in fees per year. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Amplify Seymour Cannabis ETF (CNBS - Free Report) – Up 133.2%

Cannabis stocks are soaring on a wave of wider legalization as well as the growing adoption of marijuana in more states. The Biden government has the friendliest political environment for the cannabis industries in U.S. history, as it will expedite the legalization of marijuana at the federal level. With AUM of $148.2 million, CNBS is actively managed and invests 80% of its assets in securities of companies with 50% or more of their revenues from the cannabis and hemp ecosystem. The fund holds 33 securities and charges 75 bps in annual fees. It trades in an average daily volume of 98,000 shares.

1 2
View single page >> |

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.