S&P 500 To Celebrate One Year Of New High: Top ETFs & Stocks

Though the U.S. bourses staged a strong comeback from January’s market meltdown, the rally fizzled out recently and the stocks are again far from their all-time highs reached a year ago. Notably, the S&P 500 is down 4.4% from its record high set on May 21, 2015.

This is because a number of headwinds have plagued the stock market in the past one-year period, leading to bouts of volatility and heightened uncertainty. It all started with the relentless slide in crude oil, the political turmoil in Greece, a strong dollar, weak corporate earnings, lofty valuation, Fed uncertainty, and then extended to geopolitical tensions and China-led global growth concerns. Additionally, easing policies of the central banks across the globe have not yet started to pay off, thereby lowering investor’s confidence in the economies.

Further, the growth momentum in the U.S. has slowed down with the economy growing at the slowest pace in two years in the first quarter of this year. The economy expanded at a rate of 0.5% in the first quarter of 2016, down from 1.4% in the fourth quarter, 2% in the third, 3.9% in the second and 0.6% in the first quarter of 2015. Weak consumer spending, sluggish business investments, and reduced exports have taken a toll on the economy (read: Volatility ETFs: Buy or Sell Now?).

Given the choppy markets, there still have been winners in many corners of the stock world as well as ETF space. Most of them have generated incredible returns over the past one-year period and have easily crushed the broader market. As a result, we have highlighted the five best performing ETFs and stocks that are poised to perform well for the rest of the year, especially if the same trend persists.

Best ETFs

All these funds have a favorable Zacks Rank of 1 (Strong Buy), 2 (Buy) or 3 (Hold), suggesting more room for upside.

PowerShares S&P SmallCap Utilities Portfolio (PSCU - ETF report)

This ETF targets the utility sector and follows the S&P SmallCap 600 Capped Utilities & Telecom Services Index.

Zacks ETF Rank: #3
AUM: $136.4 million
Expense Ratio: 0.29%
1-Year Return: 18.5%

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Disclosure: None.

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