5 Sector ETFs That Beat The Market In 2020
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With historic twists and turns, 2020 has turned out to be a banner year. After a solid rally in February, the pandemic wreaked havoc on the economy and sent the markets into the bear territory in late March in the fastest-ever move.
Then, Wall Street made an astounding rebound with the major indices soaring to historic highs on super-easy monetary policies coupled with COVID-19 vaccine optimism. A potentially divided Congress added to the strength.
America has started immunizing people by giving Pfizer (PFE - Free Report) shots, developed in collaboration with the German biotechnology company BioNTech (BNTX - Free Report). The second vaccine from Moderna (MRNA - Free Report) is also being given to Americans, starting last week. The start of vaccination has strengthened investors’ confidence in the economy, as it will end the worst-ever pandemic, leading to a faster-than-expected recovery.
Meanwhile, the Fed has pledged to hold rates near zero and will continue the asset purchase program at the current rate until “substantial further progress” has been made toward reaching maximum employment and healthy inflation. Trump had also approved a fresh $2.3 trillion COVID-19 relief and government funding package.
While there have been winners in many corners of the space, we highlight five sector ETFs that have been outperforming this year:
Invesco Solar ETF (TAN - Free Report) – Up 234.1%
This ETF has been on fire in 2020 primarily driven by President-elect Joe Biden’s push for going greener. Biden plans to pump $2 trillion into green energy over four years to build solar panels, charging stations, and more; vows to rejoin the Paris climate in “exactly 77 days,” and aims for net-zero emissions by 2050. Additionally, interest in environmental, social and governance investing has been rising rapidly with firms across the globe investing in clean tech business.
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