5 Global ETFs Riding On Best Winning Streak In 17 Years

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Global stocks are on track for their longest winning streak in 17 years on reflation trade. This is especially true as the MSCI World Index, which includes a range of equities in 23 developed market countries, rallied for the 12 consecutive days for the first time since January 2004.

The wider rollout of COVID-19 vaccines and the likelihood of another U.S. stimulus will expedite the pandemic-hit global economy, boosting investors’ confidence. Continued monetary stimulus, better-than-expected earnings as well as easing of lockdowns and stricter measures around the world added to the strength.

The spike in commodity prices, especially oil, is also driving the global stocks higher. Notably, oil price jumped to a 13-month high as the cold blast raised concerns over supply disruption, shutting oil refineries and forcing restrictions from natural gas pipeline operators. Oil production in Texas, the largest crude-producing state in the country, dropped as much as one million barrels a day. The industrial metals are also surging on optimism over the economic recovery. Copper climbed to the highest since 2012, platinum jumped to six-year high and tin extended a dramatic surge.

Further, the 10-year Treasury yields topped 1.27% for the first time in 11 months. Rising yields indicate strong appetite for riskier assets that would continue to drive the stock rally.

While many global ETFs have been soaring, we highlight five ETFs that are leading the space so far this year. These are also expected to continue outperforming, provided the fundamentals remain intact.

Global X Thematic Growth ETF (GXTG - Free Report) – Up 34%

This ETF seeks to provide broad exposure to disruptive macro trends arising from technological advancements, changing demographics and consumer preferences, or evolving needs for infrastructure and other finite resources through a portfolio of ETFs selected from the Global X Thematic Growth family. It tracks the Solactive Thematic Growth Index and holds 7 ETFs in its basket with Cannabis ETF (POTX - Free Report) taking the largest share at 30.7%. The fund has amassed $72.8 million in its asset base while trades in an average daily volume of 36,000 shares. It charges 50 bps in annual fees.

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