5 ETFs Leading The Current Market Rally

After recording the best week since 2011, the S&P 500 had its best start to December in eight years. Notably, the index gained 3.5% in a week and marks a sharp reversal from a week earlier when the S&P 500 stumbled into correction territory.

The flurry of positive news has renewed the appeal for riskier assets. In particular, the trade truce between the United States and China at the Group of 20 meeting in Argentina over the weekend has averted an escalation in trade war. This is especially true as Trump agreed to halt new tariff for 90 days while China agreed to boost purchases of U.S. agricultural goods to reduce trade imbalance between the two countries.

The Fed’s dovish view, an accelerating economy and the prospect of addressing the glut in oil supplies added to the strength. Last week, Powell said that interest rates were "just below" the level that would be neutral for the economy — meaning they will neither speed up nor slow down economic growth. This is in contrast to October remarks — the rate was “a long way” from neutral — which led to worries that the rate increases will crimp growth. Additionally, the subsequent minutes from the central bank's latest meeting suggests that the Fed will likely raise rates this month but may stall rate hikes next year.

Additionally, the American economy has been on a solid pace of growth with robust job creation, strong GDP growth, a 50-year low unemployment rate, the fastest pace of wage gains in nearly a decade, and rising consumer and business confidence. Further, Russia and Saudi Arabia agreed to extend their agreement to curtail output resulting in a spike in oil prices.

If these weren’t enough, seasonality is playing an important role. History suggests that December is a good month for the stock market.

Though there have been winners in every corner of the space, several ETFs have easily crushed the broad market fund (SPY) by wide margins. Below, we have highlighted five ETFs that have been star performers over the past week and are expected to continue their outperformance to end the year: 

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