5 Niche ETFs Dominating The Current Market Rally

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Wall Street has been enjoying continued ascent with the S&P 500 and Dow Jones hitting a series of record highs. The rally strengthened last week on a strong start to the Q1 earnings season and rounds of upbeat economic data, pointing to a rebound in consumer spending, sentiment, and the jobs market.

This is especially true as total earnings for the 44 S&P 500 companies (or 8.8% of the index’s total membership) that have reported Q1 results are up 93.3% on 7.7% higher revenues, with 81.8% beating EPS and revenue estimates. This is much higher than the 12-quarter average earnings decline of 1.1% and revenue growth of 4.7%.

Meanwhile, retail sales jumped 9.8% in March as cheap money, rapid COVID-19 vaccination and business re-openings spurred consumer spending. Industrial production — a measure of factory, mining, and utility output — also rebounded in March while housing starts surged to a nearly 15-year high in March. U.S. consumer sentiment increased to a one-year high in early April while homebuilder sentiment, as per the National Association of Home Builders, also saw an increase for this month.

Further, the return of momentum into the big technology names lately following a pullback in Treasury yields have also bolstered investors’ sentiment.

While there have been winners in many corners of the space, we have highlighted five ETFs from different zones that were at the heart of the latest market rally over the past week and will likely do so if the current trends prevail:

Copper: Global X Copper Miners ETF (COPX Quick Quote COPX - Free Report) – Up 9.6%

Strong prospects over global economic growth along with a decline in Treasury yields have been pushing the red metal towards 9-year highs. COPX offers global access to a broad range of copper mining companies. It tracks the Solactive Global Copper Miners Total Return Index and holds 29 stocks in its basket. Canadian firms take the largest share at 32.6% while Britain and the United States round off the next two spots. The product has managed $815.6 million in its asset base while charging 65 bps in fees per year. It trades in a good volume of 631,000 shares a day on average.

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