5 Secret Santa ETFs & Stocks This Christmas

Stock markets are sizzling this holiday season with all the three major U.S. bourses hitting new all-time highs. This is especially thanks to U.S.-Sino trade deal optimism and rounds of upbeat economic data, which point to a healthier economy.

In particular, the phase one trade deal reached between Washington and Beijing has erased fears of global slowdown and bolstered confidence in the market. Meanwhile, the U.S. economy is on a strong growth path with job additions at the fastest pace this year, unemployment dropping to the lowest level since 1969 and third-quarter GDP growth being revised upward from 1.9% to 2.1%.

The housing market is also showing signs of a strong recovery as lower mortgage rates and slower home price growth are acting as catalysts. Easing of Brexit tensions have also added to the strength.

Internationally, things are looking in a better shape. The latest data from China shows acceleration in industrial output and retail sales growth in November while Japan's economy expanded more rapidly than initially reported in the third quarter.

The uptrend has also been powered by the Fed’s accommodative interest-rate policy and the holiday fervor. The central bank has slashed interest rates three times this year, providing consumers extra spending power. Further, Santa rally is coming up and would provide further boost to stocks. A Santa rally refers to the increase in stock prices in the final week of the calendar year (i.e. between Christmas and New Year’s Day) that extends into the first two days of the New Year.

Against such a backdrop, while most of the ETFs and stocks have been surging over the past one month, there are some hidden gems or Secret Santa as we call them that could surprise investors with big returns this Christmas based on the current trends. We have highlighted some of these in detail below:


Here, we have chosen five ETFs that have underperformed the broad market fund (SPY) in a month but have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy), suggesting their outperformance in the final weeks of 2019.

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Danny Straus 9 months ago Member's comment

What about Hanukah Harry ETFs?