4 Sector ETFs That Beat The Market In August

ETFMG Alternative Harvest ETF (MJ - Free Report)

This cannabis-related ETF was on a tear last month driven by the surge in deal-making by marijuana stocks ahead of the legalization of the nationwide recreational use of cannabis in Canada on Oct 17. A number of alcoholic beverage companies are showing interest in partnering with cannabis producers, with the latest being Diageo (DEO), which is in talks with three Canadian pot producers for buying a stake or forming a partnership to produce cannabis-infused beverages.

As such, MJ emerged as the biggest winner in August, gaining 25.1%. This is the first and only ETF targeting the cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. The fund holds 40 securities in its basket with a higher concentration on the top firms. Canadian firms make up 61% of the portfolio, while American firms comprise just 21%. The ETF has AUM of $468.1 million and trades in a good volume of around 264,000 shares. It charges 75 bps in annual fees.

ETRACS Alerian MLP Infrastructure Index ETN Series B (AMLP Free Report)

Master limited partnerships (MLPs) are rising on robust drilling activity, strong earnings, and the new FERC (Federal Energy Regulatory Commission) ruling related to the treatment of income taxes for interstate natural gas pipeline operators that has offered them some relaxation. While most of the MLP products surged, MLPB led the way higher, climbing 13.9%. It is an ETN option and tracks the performance of the Alerian MLP Infrastructure Index, which comprises 22 liquid, midstream energy infrastructure MLPs.

The note is extremely illiquid and unpopular with AUM of just $9.8 million and average daily volume of 100 shares. It charges 85 in bps in annual fees.

ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report)

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