We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Sector ETFs That Are Up Double-Digits to Start August
Read MoreHide Full Article
The start of August has been solid for the U.S. stock market though uncertainty surrounding fresh government stimulus threatens to crimp the recovery. Notably, the Dow Jones Industrial Average has jumped 3.8% — its biggest percentage gain since Jun 5 — and the S&P 500 has added 2.5% — its biggest percentage gain since July 2. Meanwhile the Nasdaq Composite Index topped the 11,000 milestone, having gained 2.5% last week (read: Nasdaq Hits Record Mark 11,000: Can ETFs Rally Further?).
Better-than-expected earnings releases and rounds of economic data, which indicate that the American economy is recovering, primarily drove the gains. The latest industry gauge indicates that U.S. manufacturing activity expanded in July at the fastest pace in more than a year. The unemployment rate dropped to 10.2% in July, below June's 11.1% mark. Apart from these, the rise in mergers and acquisitions also led to a spike in the stock market.
While the rally seems broad-based, a few sectors outperformed the market at the start of August. Below we have highlighted four such ETFs that raked in double-digits gain last week and could be better plays if the trend prevails.
The solar industry has been on fire buoyed by solid earnings coupled with the presumptive Democratic presidential candidate Joe Biden’s push for clean energy and infrastructure plans. This ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index, holding 27 stocks in the basket with each making up for not more than 9.1% of the assets. American firms dominate with half of the fund’s portfolio, followed by China (23.7%) and Spain (7.2%). The product has amassed $1.1 billion in its asset base and trades in a solid volume of around 466,000 shares a day. It charges investors 71 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Top and Flop ETFs to Start Third Quarter).
ETRACS Alerian Natural Gas MLP Index ETN – Up 12.7%
Most MLPs are engaged in the processing and transportation of energy commodities such as natural gas, crude oil and refined products. As such, they are not directly linked to the price of oil and are likely to be the major beneficiaries of an oil boom in the long term. Acting as toll takers, these MLPs earn revenues on volumes that flow through pipes and not on the commodity price. MLPG is designed to track an investment in the Alerian Natural Gas MLP Index, and pay a variable quarterly coupon linked to the cash distributions associated with the underlying MLP constituents, less investor fees. It charges 85 bps in annual fees and has managed $2.8 million in its asset base. The note trades in an average daily volume of 1,000 shares.
Invesco S&P SmallCap Energy ETF (PSCE - Free Report) – Up 11.7%
Oil price logged in weekly gains on a weakening dollar, which has made dollar-denominated assets cheap for foreign investors. This fund provides exposure to the U.S. small-cap segment of the energy sector by tracking the S&P Small Cap 600 Capped Energy Index. It holds 41 stocks in its basket with AUM of 15.9 million. The fund trades in average daily volume of 72,000 shares and charges 29 bps in fees per year. It has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook (read: 4 ETF Zones Making the Most of a Weakening Dollar).
The digital shift has led to the rapid adoption of esports and increased video game usage. This ETF debuted in early June has already attracted $88.2 million in AUM. It is designed to offer retail and institutional investors exposure to sports betting and iGaming industries by tracking the Roundhill Sports Betting & iGaming Index. The fund holds 37 stocks in its basket with each accounting for less than 5.9% of assets. It charges 75 bps in annual fees and trades in average daily volume of 481,000 shares.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
4 Sector ETFs That Are Up Double-Digits to Start August
The start of August has been solid for the U.S. stock market though uncertainty surrounding fresh government stimulus threatens to crimp the recovery. Notably, the Dow Jones Industrial Average has jumped 3.8% — its biggest percentage gain since Jun 5 — and the S&P 500 has added 2.5% — its biggest percentage gain since July 2. Meanwhile the Nasdaq Composite Index topped the 11,000 milestone, having gained 2.5% last week (read: Nasdaq Hits Record Mark 11,000: Can ETFs Rally Further?).
Better-than-expected earnings releases and rounds of economic data, which indicate that the American economy is recovering, primarily drove the gains. The latest industry gauge indicates that U.S. manufacturing activity expanded in July at the fastest pace in more than a year. The unemployment rate dropped to 10.2% in July, below June's 11.1% mark. Apart from these, the rise in mergers and acquisitions also led to a spike in the stock market.
While the rally seems broad-based, a few sectors outperformed the market at the start of August. Below we have highlighted four such ETFs that raked in double-digits gain last week and could be better plays if the trend prevails.
Invesco Solar ETF (TAN - Free Report) – Up 13.7%
The solar industry has been on fire buoyed by solid earnings coupled with the presumptive Democratic presidential candidate Joe Biden’s push for clean energy and infrastructure plans. This ETF offers global exposure to the solar industry by tracking the MAC Global Solar Energy Index, holding 27 stocks in the basket with each making up for not more than 9.1% of the assets. American firms dominate with half of the fund’s portfolio, followed by China (23.7%) and Spain (7.2%). The product has amassed $1.1 billion in its asset base and trades in a solid volume of around 466,000 shares a day. It charges investors 71 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Top and Flop ETFs to Start Third Quarter).
ETRACS Alerian Natural Gas MLP Index ETN – Up 12.7%
Most MLPs are engaged in the processing and transportation of energy commodities such as natural gas, crude oil and refined products. As such, they are not directly linked to the price of oil and are likely to be the major beneficiaries of an oil boom in the long term. Acting as toll takers, these MLPs earn revenues on volumes that flow through pipes and not on the commodity price. MLPG is designed to track an investment in the Alerian Natural Gas MLP Index, and pay a variable quarterly coupon linked to the cash distributions associated with the underlying MLP constituents, less investor fees. It charges 85 bps in annual fees and has managed $2.8 million in its asset base. The note trades in an average daily volume of 1,000 shares.
Invesco S&P SmallCap Energy ETF (PSCE - Free Report) – Up 11.7%
Oil price logged in weekly gains on a weakening dollar, which has made dollar-denominated assets cheap for foreign investors. This fund provides exposure to the U.S. small-cap segment of the energy sector by tracking the S&P Small Cap 600 Capped Energy Index. It holds 41 stocks in its basket with AUM of 15.9 million. The fund trades in average daily volume of 72,000 shares and charges 29 bps in fees per year. It has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook (read: 4 ETF Zones Making the Most of a Weakening Dollar).
Roundhill Sports Betting & iGaming ETF (BETZ - Free Report) – Up 9.8%
The digital shift has led to the rapid adoption of esports and increased video game usage. This ETF debuted in early June has already attracted $88.2 million in AUM. It is designed to offer retail and institutional investors exposure to sports betting and iGaming industries by tracking the Roundhill Sports Betting & iGaming Index. The fund holds 37 stocks in its basket with each accounting for less than 5.9% of assets. It charges 75 bps in annual fees and trades in average daily volume of 481,000 shares.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>