5 ETFs That More Than Doubled S&P 500 This Year

After a sluggish 2018, the Wall Street staged an impressive comeback so far this year, overcoming myriad woes including the government shutdown, U.S. recession threats, worsening U.S.-China trade dispute and global growth worries.

The rally was driven by better-than-expected earnings, trade talks and a slew of upbeat economic data. The Federal Reserve played an important role in driving market sentiments. The central bank initially suspended the three-year monetary policy tightening program this year and has now signaled rate cuts if needed. The latest weak job data has stirred speculation on interest rate cuts.

Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Additionally, recovery in U.S. housing market, rising oil price and wave of mergers and acquisitions added to the strength.

While there have been winners in many corners of the space, several ETFs have easily crushed the S&P 500 by wide margins this year. Below, we have presented a bunch of top-performing ETFs of 2019 so far that more than doubled the index.

Invesco DWA Technology Momentum ETF (PTF - Free Report) – Up 37.9%

This fund follows the Dorsey Wright Technology Technical Leaders Index and provides exposure to technology companies that are showing relative strength (momentum). Holding 39 stocks in the basket, it is well diversified with each constituting less than 7.1% share. The product is illiquid and relatively unpopular with AUM of $190 million and average daily volume of 20,000 shares. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Renaissance IPO ETF (IPO - Free Report) – Up 34.1%

This fund provides exposure to the largest and most-liquid newly listed companies by tracking the Renaissance IPO Index. It currently holds 74 stocks in its basket, with each accounting for less than 7% exposure. Technology is the top sector accounting for 36% share while communication services and real estate round off the next two spots with double-digit allocations each. The fund has amassed $46.5 million in its asset base while trading in light volume of about 29,000 shares, probably implying additional cost beyond the expense ratio of 0.60%.

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