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Top-Ranked ETFs & Stocks That Crushed the Market in 2017

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This has been a banner year for the stock market, with the Dow Jones emerging as the biggest beneficiary of the rotation in leadership in the large-cap domestic space. The index climbed 25%, marking the best annual performance since 2013, and has moved up 5,000-points this year — the biggest annual gain in its history. Additionally, it has logged in the highest-ever number of record closes in 2017.

If a Santa Rally lifts the Dow Jones’ returns to above 26.5% the year, it would be the strongest gain since 1995, when the blue-chip index had spiked 33%. Meanwhile, the S&P 500 and Nasdaq have risen 20% and 30%, respectively, so far this year (read: Tax Reform Fuels Santa Rally: ETFs & Stocks to Bet On).

The euphoria on Wall Street was driven by dual tailwinds of strong corporate earnings and economic growth. This combined with the optimism over the biggest tax overhaul in decades has raised the appeal for riskier assets. Lower tax rates would boost earnings, leading to reflation trade and spark a wave of share buybacks, dividend hikes and mergers & acquisitions. Further, still-low interest rates and a rise in oil prices have added to the strength.

Investors should note that the surge in technology and Internet stocks has led to a rally in the Nasdaq index (read: Best Performing ETFs of 2017.

While there have been winners in every corner of the space, several ETFs & stocks have easily crushed the market this year with a few funds generating more than 50% returns and a few stocks gaining more than 200%. Below, we have presented a bunch of those that will continue to outperform in the New Year given that these have potentially superior weighting methodologies and a solid Zacks Rank #1 (Strong Buy) or 2 (Buy).

iShares U.S. Home Construction ETF (ITB - Free Report) – Up 58.3%  

This fund provides a pure play to home construction stocks by tracking the Dow Jones U.S. Select Home Construction Index. With AUM of $2.5 billion, it holds a basket of 48 stocks while charges 44 bps in annual fees. The product trades in a heavy volume of around 2.4 million shares a day on average and has a Zacks ETF Rank #2.

Virtus LifeSci Biotech Clinical Trials ETF (BBC - Free Report) – Up 55.9%

This fund has a novel approach to biotechnology investing with exposure to companies that are in the clinical trials’ stage. This can easily be done by tracking the LifeSci Biotechnology Clinical Trials Index. BBC has amassed $30.5 million in its asset base and charges 79 bps in fees per year from investors. It holds 74 securities in its basket and trades in a light average daily volume of around 13,000 shares. The product has a Zacks ETF Rank #2 (read: Top Sector ETFs of 2017).

SPDR S&P Biotech ETF (XBI - Free Report) – Up 43.2%

With AUM of $3.9 billion and average daily volume of 3.8 million shares, XBI is extremely liquid and an easily traded fund. It tracks the S&P Biotechnology Select Industry Index, providing exposure to 109 stocks. It charges a relatively low fee of 35 bps a year for the exposure. The fund has a Zacks ETF Rank #2.

iShares North American Tech-Software ETF (IGV - Free Report) – Up 42.5%

This ETF provides exposure to the software segment of the broader U.S. technology space by tracking the S&P North American Technology-Software Index. Holding a basket of 63 securities, the fund charges 48 bps in annual fees and has AUM of $1.1 billion. Volume is good as it exchanges nearly 135,000 shares a day. IGV has a Zacks ETF Rank #2.

PowerShares Dynamic Semiconductors Fund (PSI - Free Report) – Up 42.3%

This product follows the Dynamic Semiconductor Intellidex Index and offers exposure to 30 semiconductor firms. It has amassed $387.6 million in its asset base and trades in moderate average volume of around 88,000 shares a day. The product charges 63 bps in fees a year from investors and has a Zacks ETF Rank #1 (read: 5 Tech ETFs That Crushed FANG ETFs in 2017).

Restoration Hardware Holdings Inc (RH - Free Report) – Up 202.7%

Restoration Hardware is a luxury brand in the home furnishings marketplace, offering product assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, as well as baby and child products. It has seen solid earnings estimate revision of 33 cents for this fiscal year and $1.38 for the next over the past 90 days. The stock has a Zacks Rank #1 and VGM Score of A. It also boasts of belonging to a solid Industry Rank in the top 34%. You can see the complete list of today’s Zacks #1 Rank  stocks here.

Conns Inc (CONN - Free Report) – Up 182.2%

This is a specialty retailer engaged in the selling of home appliances, including refrigerators, freezers, washers, dryers and ranges, and a variety of consumer electronics, including projection, plasma and LCD televisions, camcorders, VCRs, DVD players and home theater products. The company has seen robust earnings estimate revision of 37 cents for this year and 84 cents for the next over the past 90 days. It has a Zacks Rank #1 and VGM Score of A, and belongs to a solid Industry Rank in the top 34%.

GeoPark Ltd (GPRK - Free Report) – Up 124.8%

GeoPark is an explorer, operator and consolidator of oil and gas operating primarily in Chile, Colombia, Brazil and Argentina. The company has seen solid earnings estimate revision of 8 cents for this year and 30 cents for the next over the past 90 days. It has a Zacks Rank #2 and VGM Score of A. The stock falls under an Industry Rank in the top 32%.

Kronos Worldwide Inc (KRO - Free Report) – Up 117.7%

This is a global producer and marketer of value-added titanium dioxide pigments. The stock has seen solid earnings estimate revision of 22 cents for this year and 53 cents for the next over the past 90 days. It has a Zacks Rank #1 and VGM Score of B. It belongs to an Industry Rank in the top 21% (read: 5 Secret Santa ETFs & Stocks Ahead of Christmas).

Fiat Chrysler Automobiles NV – Up 102.2%

Fiat Chrysler operates as an international automotive company engaged in designing, engineering, manufacturing, distributing and selling vehicles and components and production systems. It saw solid earnings estimate revision of 23 cents for this fiscal year and 11 cents for the next over the past 90 days. The stock has a Zacks Rank #2 and VGM Score of A. It belongs to an Industry Rank in the top 46%.  

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