5 Sector ETFs That Beat The Market In The First Half

The U.S. stock market made a spectacular reversal this year from the meltdown seen late last year. This is primarily owing to hopes of a trade deal between the two largest economies (the United States and China), a dovish Fed and a rebound in oil price. However, increased tit-for-tat tariff threats, rise in the Middle East tension, Brexit, geopolitical disturbance and global growth woes persistently made investors’ jittery.

With just a trading session left to end the first half, the Dow Jones is up about 13.7% while the S&P 500 and Nasdaq have gained 16.7% and 20.1%, respectively.

While many corners of the equity world witnessed a solid run, a few sector ETFs performed incredibly, thereby comfortably crushing the broader markets. Below, we have highlighted four such funds that have been the first half’s star performers and could also be winners in the second half if the current trends continue.

Invesco Solar ETF (TAN - Free Report) — Up 51.7%

This ETF, which offers global exposure to 22 solar stocks, has emerged as an undisputed leader this year so far, driven by a rebound in global solar demand, California’s push to make solar panels, competitive pricing and the potential Chinese subsidies. The strongest-ever solar installation and the exemption of tariff on one type of solar panels also added to this strength. American firms dominate the fund’s portfolio with nearly 47.6% share, followed by China (20.3%) and Spain (7.3%). The product has amassed $349.7 million in its asset base and trades in average daily volume of 158,000 shares. It charges investors 70 bps in fees per year and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report) — Up 37.7%

The biotech sector has been on the path of progress amid the ongoing industry consolidation and attractive valuations. Particularly, the surge in demand for artificial intelligence in the advancement of diagnoses and treatment across the health care spectrum has been perking up this ETF higher. This is an actively managed ETF, focusing on the companies, likely to benefit from the extension and enhancement of the quality of human and other life by incorporating technological and scientific developments plus improvements and advancements in genomics into their business. The fund holds 37 stocks in its basket and has 0.75% in expense ratio. It has accumulated $418 million in its asset base and trades in average daily volume of 149,000 shares.

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