8 ETFs Up More Than 25% YTD

Braving all evils of emerging market and trade war fears, the S&P 500 index is on track to record the longest bull run in history. The benchmark is now up for 3,452 days and Aug 22 will mark 3,453 days since the S&P 500 hit its low of 666 on Mar 9, 2009. Since then, the index has risen more than 300% and is up more than 7% so far this year.

The latest rally was driven by strong earnings, booming economic growth and optimism over trade talks between the United States and China. Per Trump, “the United States is on track to hit the highest annual growth rate in over 13 years.” The U.S. economy has been witnessing the fastest pace of growth in nearly four years thanks to the historic tax cuts, infrastructure investment, higher government spending, deregulation, rising wages, record unemployment, rising consumer confidence and higher spending. A rising rate scenario also signals strengthening the economy, which is spurring growth in the stock market.

The wave of mergers and acquisitions also added to the strength. Additionally, the global economy continues to expand at a steady pace despite turmoil in some emerging markets like Turkey and Venezuela.

While there have been winners in many corners of the space, we highlight eight ETFs that have outperformed and gained more than 25% in the year-to-date time frame. These are also expected to continue outperforming, provided the fundamentals remain intact.

Invesco S&P SmallCap Health Care ETF (PSCH - Free Report) – Up 41.2%

This ETF got a dual boost from its sector’s non-cyclical nature and its small-cap focus. Small-cap stocks are well insulated from international headwinds and are considered safe and better plays if any political issue or economic turmoil creeps into the picture. Additionally, encouraging sector fundamentals, tax reform, rising M&A activities and positive regulatory backdrop added to the strength. PSCH provides exposure to the healthcare sector of the U.S. small-cap segment, charging 29 bps in annual fees and has amassed $1 billion in its asset base. It is home to 70 stocks and sports a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook.

SPDR S&P Internet ETF (XWEB - Free Report) – Up 37.8%

This year gains have been fueled by broad-based technology surge. As such, XWEB has emerged as the winner in the tech space. It targets the Internet corner, charging 35 bps in annual fees. With AUM of $51.1 million, the fund holds 71 stocks in its basket and carries a Zacks ETF Rank #3 (Hold).

Invesco Dynamic Software ETF (PSJ - Free Report) – Up 29.7%

This ETF provides exposure to 30 software segment of the broader U.S. technology space and holds a small basket of 30 stocks. It charges 63 bps in annual fees and has AUM of $249.1 million. The product has a Zacks ETF Rank #2 with a High-risk outlook.

ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report) – Up 29.4%

This is an actively managed ETF focusing on companies that are expected to benefit from extension and enhancement of the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business. The fund holds 37 stocks in its basket and has accumulated $252.8 million in its asset base. It has 0.75% in expense ratio.

SPDR S&P Health Care Equipment ETF (XHE - Free Report) – Up 28.8%

Investors flocking to defensive investment amid trade fears gave a boost to this ETF. This fund offers exposure to the healthcare equipment segment and holds 71 stocks in its basket. With AUM of $617.3 million, it charges 35 bps in fees and expenses and carries a Zacks ETF Rank #3.

Amplify Online Retail ETF (IBUY - Free Report) – Up 28.2%

Retail ETFs are benefiting as rounds of upbeat data underscore the economy's strong fundamentals and consumers’ enthusiasm to spend more. The massive $1.5-trillion tax cut and deregulation are also boosting confidence among consumers. The twin effects are creating a wealth effect, making the consumer segment a great place to stay invested in. IBUY offers global exposure to companies that derive 70% or more revenues from online and virtual retail by tracking the EQM Online Retail Index. The fund comprises 39 stocks and has attracted $527.4 million in its asset base. It charges 65 bps in fees per year.

ARK Innovation ETF (ARKK - Free Report) – Up 27.7%

This is an actively managed fund focusing on companies that are expected to benefit from the development of new products or services, technological improvement, and advancements in the genomic revolution, Web x.0, and industrial innovation. It holds 45 stocks in its basket and has amassed $1.3 billion in its asset base. The expense ratio comes in at 0.75%.

SPDR FactSet Innovative Technology ETF (XITK - Free Report) – Up 27.5%

With AUM of $54.3 million, this fund seeks to provide exposure to the most innovative companies with high revenue growth across the technology sector and other industries that deal with technology, such as electronic media. It holds 97 stocks in its basket and has an expense ratio of 0.45%.  

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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