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The month of March has been good for the U.S. stock market, with the three major bourses on track for the fifth consecutive month of gain. The S&P 500 Index crossed the 5,200 milestone last week, rising more than 3% in March. The Dow Jones and the Nasdaq Composite Index are up about 2% each.
The rally has been broad-based. Some of the top performers in the ETF space from different sectors of the market are Amplify Alternative Harvest ETF (MJ - Free Report) , First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) , iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report) , US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) and Sprott Junior Copper Miners ETF (COPJ - Free Report) .
Most of the rally came from the Fed rate cut speculations. Low rates are generally favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Fed Chair Jerome Powell, in the latest meeting, maintained interest rates steady in the range of 5.25%-5.50% and signaled three rate cuts this year, citing expanding economic activity and easing but elevated inflation. This will mark the end of the most aggressive Fed hiking cycle and fuel corporate profits (read: ETFs in Focus With Fed Rate Cuts in the Cards).
Additionally, the continued expansion in AI applications will continue to fuel the stocks higher. Many experts believe that the AI journey for market leaders has just begun, and more innovations in this field will unfold.
ETFs in Focus
Let’s dig into the details of the abovementioned ETFs:
Amplify Alternative Harvest ETF (MJ - Free Report) – Up 26%
Cannabis stocks and ETFs have been on a surge on speculation over the potential reclassification of marijuana as a less dangerous drug. A reclassification could potentially expand the market for marijuana, which is a multi-billion-dollar industry in the United States and a cash crop in many states where cannabis has been newly legalized (read: Cannabis ETFs Jump on Imminent Rescheduling News).
Amplify Alternative Harvest ETF is the first ETF focused on the global cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, which is designed to measure the performance of companies within the cannabis ecosystem, and benefits from global medicinal and recreational cannabis legalization initiatives. Amplify Alternative Harvest ETF holds 30 securities in its basket with an AUM of $261.2 million and charges 75 bps in annual fees. It trades in an average daily volume of 3.3 million shares.
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) – Up 23.4%
The world's largest cryptocurrency has been on an unstoppable rally amid surging optimism. Demand for the token is widening beyond committed digital-asset enthusiasts. A looming reduction in the digital token’s supply growth (halving event) is also contributing to its huge rally. First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economy-related innovation. SkyBridge identifies securities primarily via “bottom-up” research focused on finding companies leading in the crypto industry ecosystem.
First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $56.1 million in its asset base and trades in an average daily volume of 80,000 shares.
iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report) – Up 21.1%
Silver has risen in recent weeks in tandem with gold price. A growing economy, coupled with easing inflation, is spurring manufacturing and industrial activities, thereby providing a boost to the price of silver. Notably, silver is used in a wide range of industrial applications.
iShares MSCI Global Silver and Metals Miners ETF follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors’ exposure to companies that derive the majority of revenues from silver exploration or metals mining. It holds 34 stocks in its basket, with Canadian firms making up the lion’s share at 67% while the United States rounds off the next spot with a double-digit exposure. iShares MSCI Global Silver and Metals Miners ETF has AUM of $163.2 million and an average daily volume of about 100,000 shares. It charges 39 bps in annual fees.
US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) – Up 20.6%
The allure of gold returned in March on expectations of U.S. interest rate cuts in June. Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity costs of holding non-yielding bullion and weaken the U.S. dollar (read: 5 Popular ETFs to Play the Rally in Gold Price).
US Global GO GOLD and Precious Metal Miners ETF provides investors access to companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means. It tracks the U.S. Global Go Gold and Precious Metal Miners Index, holding 30 stocks in its basket. Canada takes the lion’s share at 50.6%, followed by Australia (18.1%), the United States (12.9%) and South Africa (12.7%). GOAU has amassed $86.1 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 23,000 shares per day on average.
Copper prices surged following an agreement by Chinese smelters to cut production as these smelters are responsible for processing half of the global copper supply. The copper market is tightening, with Chinese smelter maintenance set to peak in April and May, which could hurt refined copper production, thereby pushing the price higher (read: ETFs to Play the Potential Strength in Copper Prices).
Sprott Junior Copper Miners ETF is the only pure-play ETF focused on small copper miners, selected for their potential for significant revenue and asset growth by tracking the Nasdaq Sprott Junior Copper Miners Index. It holds 40 stocks in its basket, with Canadian firms taking the largest share at 54.4%. Australia and Peru round off the next two spots. Sprott Junior Copper Miners ETF has AUM of $6.8 million and trades in a lower average daily volume of 5,000 shares. It charges 75 bps in annual fees and expenses.
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5 Sector ETFs That Beat the Market in March
The month of March has been good for the U.S. stock market, with the three major bourses on track for the fifth consecutive month of gain. The S&P 500 Index crossed the 5,200 milestone last week, rising more than 3% in March. The Dow Jones and the Nasdaq Composite Index are up about 2% each.
The rally has been broad-based. Some of the top performers in the ETF space from different sectors of the market are Amplify Alternative Harvest ETF (MJ - Free Report) , First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) , iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report) , US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) and Sprott Junior Copper Miners ETF (COPJ - Free Report) .
Most of the rally came from the Fed rate cut speculations. Low rates are generally favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Fed Chair Jerome Powell, in the latest meeting, maintained interest rates steady in the range of 5.25%-5.50% and signaled three rate cuts this year, citing expanding economic activity and easing but elevated inflation. This will mark the end of the most aggressive Fed hiking cycle and fuel corporate profits (read: ETFs in Focus With Fed Rate Cuts in the Cards).
Additionally, the continued expansion in AI applications will continue to fuel the stocks higher. Many experts believe that the AI journey for market leaders has just begun, and more innovations in this field will unfold.
ETFs in Focus
Let’s dig into the details of the abovementioned ETFs:
Amplify Alternative Harvest ETF (MJ - Free Report) – Up 26%
Cannabis stocks and ETFs have been on a surge on speculation over the potential reclassification of marijuana as a less dangerous drug. A reclassification could potentially expand the market for marijuana, which is a multi-billion-dollar industry in the United States and a cash crop in many states where cannabis has been newly legalized (read: Cannabis ETFs Jump on Imminent Rescheduling News).
Amplify Alternative Harvest ETF is the first ETF focused on the global cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, which is designed to measure the performance of companies within the cannabis ecosystem, and benefits from global medicinal and recreational cannabis legalization initiatives. Amplify Alternative Harvest ETF holds 30 securities in its basket with an AUM of $261.2 million and charges 75 bps in annual fees. It trades in an average daily volume of 3.3 million shares.
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) – Up 23.4%
The world's largest cryptocurrency has been on an unstoppable rally amid surging optimism. Demand for the token is widening beyond committed digital-asset enthusiasts. A looming reduction in the digital token’s supply growth (halving event) is also contributing to its huge rally. First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economy-related innovation. SkyBridge identifies securities primarily via “bottom-up” research focused on finding companies leading in the crypto industry ecosystem.
First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $56.1 million in its asset base and trades in an average daily volume of 80,000 shares.
iShares MSCI Global Silver and Metals Miners ETF (SLVP - Free Report) – Up 21.1%
Silver has risen in recent weeks in tandem with gold price. A growing economy, coupled with easing inflation, is spurring manufacturing and industrial activities, thereby providing a boost to the price of silver. Notably, silver is used in a wide range of industrial applications.
iShares MSCI Global Silver and Metals Miners ETF follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors’ exposure to companies that derive the majority of revenues from silver exploration or metals mining. It holds 34 stocks in its basket, with Canadian firms making up the lion’s share at 67% while the United States rounds off the next spot with a double-digit exposure. iShares MSCI Global Silver and Metals Miners ETF has AUM of $163.2 million and an average daily volume of about 100,000 shares. It charges 39 bps in annual fees.
US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) – Up 20.6%
The allure of gold returned in March on expectations of U.S. interest rate cuts in June. Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity costs of holding non-yielding bullion and weaken the U.S. dollar (read: 5 Popular ETFs to Play the Rally in Gold Price).
US Global GO GOLD and Precious Metal Miners ETF provides investors access to companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means. It tracks the U.S. Global Go Gold and Precious Metal Miners Index, holding 30 stocks in its basket. Canada takes the lion’s share at 50.6%, followed by Australia (18.1%), the United States (12.9%) and South Africa (12.7%). GOAU has amassed $86.1 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 23,000 shares per day on average.
Sprott Junior Copper Miners ETF (COPJ - Free Report) – Up 16.6%
Copper prices surged following an agreement by Chinese smelters to cut production as these smelters are responsible for processing half of the global copper supply. The copper market is tightening, with Chinese smelter maintenance set to peak in April and May, which could hurt refined copper production, thereby pushing the price higher (read: ETFs to Play the Potential Strength in Copper Prices).
Sprott Junior Copper Miners ETF is the only pure-play ETF focused on small copper miners, selected for their potential for significant revenue and asset growth by tracking the Nasdaq Sprott Junior Copper Miners Index. It holds 40 stocks in its basket, with Canadian firms taking the largest share at 54.4%. Australia and Peru round off the next two spots. Sprott Junior Copper Miners ETF has AUM of $6.8 million and trades in a lower average daily volume of 5,000 shares. It charges 75 bps in annual fees and expenses.