5 ETFs That Gained More Than 20% In Second Year Of Pandemic

Image: Bigstock

It’s been two years since the World Health Organization declared COVID-19 a pandemic, which has had global impacts leading to more than six million deaths, supply chain disruptions, and red-hot inflation. Additionally, a war between Russia and Ukraine raged up in recent weeks, making the stock market extremely wild and pushing the S&P 500 into correction territory from a year-to-date look. However, the S&P 500 is up 6.6% over the past year.

While most corners of the market have rallied during the second year of the pandemic, overcoming the recent geopolitics, we have highlighted five ETFs from different zones that have easily outperformed the market. First Trust Natural Gas ETF (FCG - Free Report), North Shore Global Uranium Mining ETF (URNM - Free Report), SPDR S&P Metals & Mining ETF (XME - Free Report), Pacer US Cash Cows 100 ETF (COWZ - Free Report) and Fidelity Real Estate Investment ETF (FPRO - Free Report) have gained more than 20% in a year.

There have been shortages on the supply side of the U.S. economy given the lack of commodities, labor shortages, and other inputs to produce the totality of all the goods and services demanded by other businesses and American consumers. On the other hand, consumer demand has increased as the economy is recovering from the pandemic, pushing up the prices for a wide range of commodities.

As such, inflation skyrocketed to a 40-year high and 10-year yields are heading toward 2%. Crude oil spiked to hit a 13-year high of $130 per barrel while gold topped the key level of $2,000 per ounce. Meanwhile, the U.S. economy expanded 5.7% annually in 2021, marking the fastest pace of growth since 1984 and a sharp reversal from the GDP contraction of 3.4% recorded in 2020.

Given the improving economy and high inflation, the central bank is expected to tighten monetary policy in its FOMC meeting slated to held this week. Fed Chair Jerome Powell proposed a quarter-point hike instead of a half-point indicating uncertainty related to the ongoing war. But he could move “more aggressively” if the four-decade inflation does not abate substantially. Powell called the labor market “extremely tight” and said inflation has risen well above the Fed’s 2% target.

ETFs That Gained Most

First Trust Natural Gas ETF (FCG) – Up 64.2%

First Trust ISE-Revere Natural Gas Index Fund offers exposure to U.S. companies involved in the exploration and production of natural gas. It follows the ISE-REVERE Natural Gas Index and holds 43 stocks in its basket.

First Trust ISE-Revere Natural Gas Index Fund has amassed $658.7 million in its asset base while charging 60 bps in annual fees. Volume is good, with 1.9 million shares exchanged per day, on average. The product has a Zacks ETF Rank #3 (Hold).

North Shore Global Uranium Mining ETF (URNM) – Up 60%

North Shore Global Uranium Mining ETF provides exposure to companies involved in the mining, exploration, development, and production of uranium, as well as companies that hold physical uranium or other non-mining assets. It follows the North Shore Global Uranium Mining Index and charges investors 85 bps in annual fee.

North Shore Global Uranium Mining ETF holds 35 stocks in its basket and has accumulated $1 billion in its asset base. It trades in a good volume of 315,000 shares per day on average.

SPDR S&P Metals & Mining ETF (XME) – Up 41.4%

SPDR S&P Metals & Mining ETF offers a broad exposure to the U.S. metal and mining industry by tracking the S&P Metals and Mining Select Industry. It holds 32 stocks in its basket with steel firms accounting for 39.5% of the portfolio while coal & consumable fuels, aluminum and gold round off the next two spots with double-digit exposure each.

SPDR S&P Metals & Mining ETF has 0.35% in expense ratio and has AUM of $3.3 billion. It trades in an average daily volume around 5.5 million shares.

Pacer US Cash Cows 100 ETF (COWZ) – Up 24.8%

With AUM of $3 billion, Pacer US Cash Cows 100 ETF is a strategy-driven fund that aims to provide capital appreciation over time by screening the Russell 1000 for the top 100 companies based on free cash flow yield. It holds 101 stocks in its basket with a well-diversified portfolio. Healthcare takes the largest share at 23.1% while consumer discretionary, materials, information technology, and energy round off the next spots with double-digit exposure each.

Pacer US Cash Cows 100 ETF charges 49 bps in annual fees and trades in an average daily volume of 922,000 shares.

Fidelity Real Estate Investment ETF (FPRO) – Up 22.4%

Fidelity Real Estate Investment ETF is an actively managed ETF that seeks above-average income and long-term capital growth, consistent with reasonable investment risk by investing at least 80% of assets in securities of companies principally engaged in the real estate industry and other real estate-related investments. It holds 41 stocks in its basket with none accounting for more than 8.3% share.

Fidelity Real Estate Investment ETF has been able to manage $21.6 million in its asset base and charges 59 bps in annual fees. IT trades in an average daily volume of 10,000 shares.

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.