5 Best-Performing Stocks Of The Best ETF Of January

In a coronavirus infected economy, the technology sector has been on a tear on the initial phase of the U.S.-China trade deal. In particular, technology companies have huge exposure to China. ARK Next Generation Internet ETF (ARKW - Free Reporthas topped the list of the best-performing ETFs of January, with impressive returns of about 9.7%.

The impressive rally was mainly driven by the rapid emergence of cutting-edge technology, including cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, and machine learning. The growing adoption of 5G technology — the next wireless revolution — is creating further opportunities. The wave of mergers and acquisitions is also providing further impetus to the space.

Let’s take a closer look at the fundamentals of ARKW.

ARKW in Focus

This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. These include companies that rely on or benefit from the increased use of shared technology, infrastructure and services, Internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media.

The fund holds 43 stocks in its basket with none holding more than 10.8% share. From a sector look, ecommerce makes up for 24% of the portfolio while big data & machine learning, cloud computing & cybersecurity, Internet of Things and digital media round off the next four spots with double-digit exposure each. The ETF has amassed $454.7 million in its asset base and trades in a good average daily volume of around 110,000 shares. The expense ratio comes in at 0.75%.

Though most of the stocks in the fund’s portfolio delivered strong returns, a few were the real stars, having gained more than 20%. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund’s basket:

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