Top & Flop Zones Of 2020 And Their ETFs

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This has been the banner year for global stocks with most of the indices enjoying a boom. In fact, most of the indices have been on a historic ride buoyed by an unprecedented fiscal and monetary stimulus across the globe. The wide reach of the COVID-19 vaccine is expected to fuel faster-than-expected economic recovery. Further, an additional coronavirus relief package worth $900 billion has bolstered investors’ sentiment in the economy.

However, surging coronavirus cases are weighing on the economy. This has compelled investors’ flight to safety, especially in gold. Silver also got a boost from rebounding industrial and manufacturing demand and will likely to do so given the speculation for a stronger economy.

Given this, we have highlighted the best and worst-performing zones and their ETFs in 2020:

Best Zones

Solar

The solar industry has been on fire primarily driven by President-elect Joe Biden’s push for going greener. Biden plans to pump $2 trillion into green energy over four years to build solar panels, charging stations, and more; vows to rejoin the Paris climate in “exactly 77 days,” and aims for net-zero emissions by 2050.

Invesco Solar ETF (TAN - Free Reportsurged 233.5%. It offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index, holding 30 stocks in the basket. U.S. firms dominate the fund’s portfolio with nearly 48% share, followed by China (23.6%) and Spain (7.1%). The product has amassed $3.7 billion in its asset base and trades in a solid volume of around 1.8 million shares a day. It charges investors 69 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Disruptive Innovation

Innovation has been changing consumer habit and the economy. ARK defines ‘‘disruptive innovation’’ as the introduction of a technologically enabled new product or service that potentially changes the way the world works.

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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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