Best & Worst ETF Zones Of 2019

This has been a banner year for the global stock market, with more than $10 trillion piled up in equities. Notably, U.S. stocks registered most impressive performances with all the three major U.S. indices climbing to record highs. Notably, the S&P 500 is on track for the strongest year since 2013.

Trade and Fed are the two major forces that drove the stock market this year. This is especially true as trade fears abated after the phase one deal was agreed upon by the world’s two largest economic powers. Additionally, the central bank across the globe went on an easing spree with the Fed slashing the interest rates three times this year. 

Given this, a few corners of ETF investing have performed exceptionally well while some areas are lagging. Below we have highlighted the best and worst zones of 2019 and their ETFs in detail:

Best Zones

Currency

The overlooked Market Vectors-Indian Rupee/USD ETN (INR - Free Reporthas emerged as the biggest winner, skyrocketing nearly 80% this year. The surge came as it is structured as an exchange-traded note (ETN) and was traded at a very high price above its net asset value. However, the easing measures adopted by the Reserve Bank of India have erased some gains in recent months made by the ETN. The product tracks the performance of the S&P Indian Rupee Total Return Index and has accumulated $1 million in its asset base. The ETN charges 55 bps in annual fees and trades in average daily volume of 3,000 shares. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Semiconductor

Semiconductors are shining and leading the broader technology sector on trade optimism as chip stocks have a lot of exposure to China. They derive a large portion of their revenues from China since it is the world’s biggest chip market and have supply chains in the country. While all the semiconductor ETFs have risen, VanEck Vectors Semiconductor ETF (SMH - Free Reportis the biggest winner having gained 68%. This fund provides exposure to 25 semiconductor companies by tracking the MVIS US Listed Semiconductor 25 Index. It has managed assets worth $1.5 billion and charges 35 bps in annual fees and expenses. The ETF trades in average daily volume of 4.4 million shares and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

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