9 High-Flying ETFs Of 2019

Since the start of the fourth quarter, Wall Street is witnessing new highs on the back of a better-than-expected earnings season, easing policies and trade deal optimism.

Total earnings for 403 S&P members that reported Q3 results are down 1.7% on 4% higher revenues, with 73% beating EPS estimates and 58.1% beating on revenues. While earnings growth is less than what this group of companies witnessed in recent periods, revenue growth is only modestly tracking lower. The proportion of these companies beating EPS and revenue estimates is in the historical range.

Major central banks across the globe are taking steps to prop up slowing economic growth that have eased global recession concerns and in turn lifted investors’ confidence. The Fed has slashed interest rates three times so far this year and the European Central Bank also cut interest rates in a package of easing measures.

In the latest trade development, the United States agreed to remove tariffs in phases and Beijing is also considering removing restrictions on poultry imports. Per Bloomberg News, the first agreement between the superpowers will be signed in the next few weeks.

While there have been winners in many corners of the space, we highlight nine ETFs from different zones that have outperformed so far this year. These are expected to continue outperforming, provided the fundamentals remain intact.

SPDR S&P Semiconductor ETF (XSD - Free Report) – Up 52.7%

This ETF, which offers exposure to the semiconductor corner of the broad tech sector, has emerged as an undisputed winner this year on trade deal optimism. It tracks the S&P Semiconductor Select Industry Index, holding 35 stocks in its portfolio. The fund has AUM of $407.4 million and charges 35 bps in fees per year. It trades in average daily volume of 116,000 shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Invesco Solar ETF (TAN - Free Report) – Up 49.9%

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