Top & Flop Zones At Half-Way Q1 & Their ETFs

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Global stocks kicked off 2021 on a solid note with the longest winning streak in 17 years. Most of the rally came from the roaring U.S. stock market, which has been hitting record highs with new milestones.

The wider rollout of COVID-19 vaccines and the likelihood of another U.S. stimulus are expected to boost the pandemic-hit global economy, in turn, raising the appeal for riskier assets. Continued monetary stimulus, better-than-expected earnings as well as easing of lockdowns, and stricter measures around the world added to the strength.

In the commodity world, while the shine for gold and silver is waning, the industrial metals and energy have become red-hot lately. The industrial metals are surging on optimism over the economic recovery. Copper has hit the peak since 2012, platinum jumped to a six-year high and tin extended a dramatic surge. Meanwhile, oil price jumped to a 13-month high as the cold blast raised concerns over supply disruption, shutting oil refineries and forcing restrictions from natural gas pipeline operators.

Given this, we have highlighted the best and worst-performing zones and their ETFs halfway through first-quarter 2021:

Best Zones

Shipping

Breakwave Dry Bulk Shipping ETF (BDRY - Free Reporthas gained the most, surging 116.4% so far this year on rising dry bulk shipping rates. The expectation of a speedy global economic recovery has brightened the demand outlook for all vessel categories, leading to spike in the rates. The fund provides exposure to the dry bulk shipping market through a portfolio of near-dated freight futures contracts on dry bulk indices. The fund has accumulated about $21.5 million in AUM and trades in a moderate volume of about 129,000 shares per day on average. It charges a higher annual fee of 3.32%.

Cannabis

Cannabis stocks have been among the biggest winners to start 2021 buoyed by hopes of wider legalization and near-term decriminalization as well as the growing adoption of marijuana in more states. Additionally, the deal activities as well as Reddit frenzy have strengthened the bullish case for these stocks.

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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 ...

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