Best ETF Areas Of Q1

The rollout of the $1.9 trillion of fiscal support from the Biden administration, growing distribution of vaccines and the starting of the economic reopening were the key highlights of the first quarter of 2021. However, the quarter also faced some concerns whole closing out as COVID-cases started rising globally.

There were some disbalances in the financial markets too in the quarter in the form of Reddit Frenzy (that made stocks like GameStop a star overnight) and Archegos’ default on margin call and the resultant selling of its holdings by some renowned banks.

Rising rate worries and fears of tax rate hike in the United States also dampened investors sentiments in March. The benchmark U.S. treasury yield went up to 1.73% on Mar 29, 2021 from 0.93% at the start of the year. Overall, S&P 500 Index, the Dow Jones, the Nasdaq and the Russell 2000 gained about 6.2%, 9%, 1.5% and 12.1% respectively, in the quarter (as of Mar 30, 2021).

Against this backdrop, below we highlight a few winning ETF areas of the first quarter

Shipping

The shipping ETF that tracks the Capesize 5TC Index, Panamax 4TC Index & Supramax 6TC Index measure rates for shipping dry bulk freight was crowned the best ETF of Q1. The pickup in global economic growth has supported the dry bulk shipping rates. Gradually rising demand across all vessel categories have mainly aided the area and the related fund.

Plus, Suez Canal blockage by a massive ship lately worked wonder for shipping rates in late March as the incident has caused disruptions in shipping and tends to push shipping rates higher (read: ETFs to Win/Lose on Suez Canal Blockage).

Breakwave Dry Bulk Shipping ETF BDRY – Up 116.1%

Blockchain

The first quarter was great for the price of Bitcoin. It crossed the $60,000-mark for the first time this quarter. Bitcoin has soared about 100% this year driven by institutional interest (read: Bitcoin at Record $60K: Which Way ETFs are Headed?). 

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