5 Best Performing Stocks Of The Top ETF Of 2018

Invesco Dynamic Software ETF (PSJ - Free Report) topped the list of the best-performing ETFs of 2018, with impressive returns of about 16.4%.

Though the broad technology sector has witnessed bumpy ride throughout the year, marked by sharp sell-offs on several occasions, software corner remained the hot spot. This is especially true as the rapid adoption of cutting-edge technology such as cloud, Internet of Things, gaming, wearables, drones, virtual reality devices, artificial intelligence, machine learning, and other advanced information technologies is boosting growth for the software industry.

The software industry is driving most of the global IT spending, which is projected to grow by 4.5% in 2018 and 3.2% in 2019, per Gartner. Enterprise software spending will likely grow 9.9% in 2018 and 8.3% in 2019, buoyed by software as a service.

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

PSJ in Focus

This ETF offers exposure to 30 companies that are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services. It tracks the Intellidex Index, which is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value.

The product has amassed $229.3 million in its asset base and trades in solid volume of around 49,000 shares a day. It charges investors 63 basis points (bps) in fees per year and has a Zacks ETF Rank #2 (Buy) with a High-risk outlook.

Though most of the stocks in the fund’s portfolio delivered strong returns, a few were the real stars, having more than doubled or nearly doubled in 2018. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund’s basket:

Best Performing Stocks of PSJ

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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