Top And Flop ETFs To Start Third Quarter

Stock markets across the globe were off to a strong start in the third quarter buoyed by hopes of coronavirus vaccines and a slew of stimuli by central banks. Additionally, pickup in activities after the reopening of economy lent supported.

In particular, the United States created 4.8 million jobs in June, the highest since the Labor Department began keeping record in 1939, as more restaurants and bars resumed operations. Manufacturing activity rebounded in June, hitting its highest level in more than a year while consumer confidence logged in the biggest gain since 2011. The Federal Reserve’s Beige Book survey showed that the United States saw an uptick in business activity in the beginning of July as states eased restrictions to contain the novel coronavirus pandemic.

The rally came despite surging new coronavirus cases that raised questions over continued recovery as well as weak earnings expectations.

Given this, many corners of the market have seen smooth trading while a few lag. Below, we have highlighted ETFs from the best and worst zones to start the third quarter.

Best Zones


The second wave of coronavirus crisis has compelled investors to shift toward safer havens like bonds. iPath US Treasury 5-year Bull ETN (DFVL - Free Reportwas the biggest winner, having soared 41%. It offers exposure to the Barclays 5Y US Treasury Futures Targeted Exposure Index, charging investors 75 bps in annual fees. The note has amassed $6.1 million in its asset base and trades in average daily volume of under 1,000 shares. It has a Zacks ETF Rank #3 (Hold).

Clean Energy

The clean energy space has been showing strength on the presumptive Democratic presidential candidate Joe Biden’s push for clean energy and infrastructure plans. Additionally, the merger between Sunrun Inc. (RUN - Free Report) and Vivint Solar (VSLR - Free Report) added to investors’ enthusiasm. While many clean energy ETFs has been surging, Invesco Solar ETF (TAN - Free Reportled the way gaining 21.6%. This ETF offers global exposure to 28 solar stocks by tracking the MAC Global Solar Energy Index. U.S. firms dominate the fund’s portfolio with nearly 49.6% share, followed by China (21.8%) and Spain (7.6%). The product has amassed $612.5 million in its asset base and charges investors 71 bps in fees per year. It trades in volume of 466,000 shares and has a Zacks ETF Rank #2 (Buy).

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