Top-Ranked ETFs That Crushed The Market In 1H

The first half of 2020 was marked by huge volatility mainly triggered by the COVID-19 outbreak, which had pushed the U.S. stock market into bear territory in late March. However, the stocks staged an impressive comeback from the lows. A booming technology sector, an unprecedented stimulus from the central bank and the government, and hopes of a potential coronavirus vaccine were the biggest catalysts in driving the stocks higher. Additionally, the rounds of data indicate that the economy has been recovering faster than expected from the COVID-19 pandemic.

However, renewed concerns over a second wave of coronavirus disease charged up the bears lately, bringing volatility back in the market. New coronavirus infections soared to alarming new levels across the United States. Per a State Health Department report, 39,327 new infections were reported nationally, surpassing the single-day record of 38,115, set just a day earlier. Texas alone reported a record 5,996 new cases on Thursday, and the state’s rolling average has jumped by 340% since Memorial Day. The rise in new infections has sparked off worries that reopening of businesses and economies could be curtailed again, slowing down the current recovery, which is faster than expected. Further, reemergence of trade tension and International Monetary Fund’s downgrade to economic growth outlook added to the chaos.

Given the recent challenges, the S&P 500 and the Dow Jones are in red from a year-to-date look while the Nasdaq has outperformed, gaining nearly 9%.

As such, several ETFs crushed the market by wide margins on a year-to-date timeframe and carry a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy). Below, we have presented a bunch of top-performing ETFs from various corners of the market that are likely to continue outperforming, should the trends prevail.

WisdomTree Cloud Computing Fund (WCLD - Free Report) – Up 52.2%

This fund offers exposure to emerging, fast-growing U.S.-listed companies (including ADRs) primarily focused on cloud software and services and follows the BVP Nasdaq Emerging Cloud Index. It holds 52 stocks in its basket and charges investors 45 bps in fees per year. The product has amassed $402 million in its asset base and trades in average daily volume of 182,000 shares. It has a Zacks ETF Rank #2.

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