Top And Flop ETFs To Start 2020

Cannabis

After being beaten badly last year, cannabis stocks staged a nice comeback, given a greater legislative push to legalize recreational marijuana. The latest report shows that up to a dozen states could legalize adult-use or medical marijuana in 2020 through their legislatures or ballot measures. As a result, Global X Cannabis ETF (POTX - Free Report), which seeks to invest in companies across the cannabis industry, has been outperforming with 12.5% gains so far this year. The product has accumulated $8.4 million in its asset base within four months of debut and trades in average daily volume of 16,000 shares. Expense ratio comes in at 0.50%.

Worst Zones

Shipping

Shipping stocks saw rough trading as dry bulk freight rates skidded to its lowest in nine months, weighed down by shrinking demand across all vessel categories. As such, Breakwave Dry Bulk Shipping ETF (BDRY - Free Reportfell 21.6% in the first few weeks of 2020. It provides exposure to the daily price movements of the near-dated dry bulk freight futures. The fund has accumulated about $1.2 million in AUM. It trades in a paltry volume of about 5,000 shares per day on average and charges a higher annual fee of 1.85%.

Coffee

iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO - Free Reportdeclined 12.8% in the same time frame. It tracks the Bloomberg Coffee Subindex Total Return, which reflects the returns that are potentially available through unleveraged investment in futures contracts on coffee. The ETN has AUM of $75.6 million and average daily volume of 81,000 shares. It charges 45 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Volatility

Though the stock market witnessed bouts of volatility this year, volatility products were the biggest losers. In particular, VelocityShares Daily Long VIX Short-Term ETN (VIIX - Free Reporthas dropped 12.04%. It seeks to deliver the daily performance of the S&P 500 VIX Short-Term Futures Index, which provides investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve. This ETN is unpopular and illiquid with AUM of $18.4 million and average daily volume of 22,000 shares. The note charges 89 bps in annual fees.

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