6 Secret Santa ETFs To Add Cheer To Your Portfolio

Image: Bigstock

Wall Street has been sizzling hot post-election. The COVID-19 vaccine development and hopes of their availability have pushed the stocks to new highs. This is especially true, as a vaccine will end the pandemic, leading to a faster-than-expected economic recovery.

America has started immunizing people by giving Pfizer (PFE - Free Report) shots, developed in collaboration with the German biotechnology company BioNTech (BNTX - Free Report). This represents a historic development to counter the worst pandemic in over 100 years.

The uptrend has also been powered by super-easy monetary and fiscal policies adopted by the central bank and government. Fed Chairman Jerome Powell has pledged to keep rates at lower levels until the end of 2023. A lower interest rate has provided consumers extra spending power, which in turn will push up economic activities. Notably, U.S. consumers grew more confident about the economy in early December on prospects of a vaccine. A gauge of U.S. consumer sentiment, as measured by the University of Michigan, climbed to the second-highest level since March to 81.4 from 76.9 in the prior month.

Holiday fervor is also adding to the strength even though consumers have flocked to e-commerce this year. Moreover, a Santa rally is coming up and would provide a further boost to the 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 have been surging over the past 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 six ETFs that been lagging the gain of 2.5% for the broad market fund (SPY - Free Report) over the past month and have a Zacks ETF Rank # 2 (Buy) or 3 (Hold), suggesting room for upside in the final weeks of 2020.

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.