Here Are The Hottest ETFs In The Markets Right Now

May 17, 2017 7:06am NASDAQ:QQQ

Image of statue of a bull

From Zacks: The bulls raged past the latest rounds of threats including a global cyberattack and tensions in North Korea.


The global stock market scaled new highs once again with iShares MSCI ACWI ETF (ACWIFree Report) having logged in gains of 10.5% in the year-to-date timeframe.

This is especially true given a pickup in economic activity in many parts of the world, robust corporate earnings, Trump pro-growth policies, a rebound in oil price and improving global sentiments, especially after the French election. Notably, Saudi Arabia and Russia, the world’s top two oil producers, agreed to extend their production cuts for nine more months until March 2018. This news has renewed optimism in the energy sector, which was under pressure from higher U.S. output and increased inventories weighing on the equity market.

Weakness in dollar is providing additional strength to commodity producers, leading to the rally in these stocks while WannaCry virus increased demand for technology stocks in the latest trading session (read: Cybersecurity ETFs Set to Rally After a Global Cyberattack).

As the rally was broad based, winners are spread across many corners of the space. Below we have highlighted a few ETFs and stocks that surged to fresh highs in recent session and could be compelling choices for investors seeking to ride out the current trends in the equity markets. All these have a top Zacks Rank #1 (Strong Buy) or #2 (Buy), suggesting that their lead will continue in the months ahead.

Further, we have plotted each of them in the chart to envision a clear view of their outperformance.

Best Performing ETFs

iShares MSCI India Small-Cap ETF (SMINFree Report)

This product provides exposure to the small cap segment of the broad Indian stock market by tracking the MSCI India Small Cap Index. It is unpopular and illiquid with AUM of $185.9 million and average daily volume of 47,000 shares. The fund charges 80 bps in annual fees and has climbed about 40.8% in the year-to-date timeframe, having hit a fresh high of $46.07. It has a Zacks Rank #1 (read: 5 Reasons to Buy India ETFs Now).

PowerShares Dynamic Semiconductors Fund (PSIFree Report)

This fund targets the semiconductor industry of the broad technology sector. It follows the Dynamic Semiconductor Intellidex Index, charging 63 bps in annual fees. PSI has decent AUM of $255.4 million and sees a modest average daily volume of about 64,000 shares. It has hit a fresh high of $44.50, and moved higher by about 23.1% in the year-to-date timeframe. PSI has a Zacks Rank #1 (read: Trump Nearing 100 Days in Office: ETF Winners & Losers).

PowerShares QQQ (QQQFree Report)

This ETF provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq. It is one of the largest and the most popular ETFs in the large cap space with AUM of $50.5 billion and average daily volume of 20 million shares. It charges investors 20 bps in annual fees and has surged to a new high of $139.12, having gained 17.6% so far this year. The fund has a Zacks Rank #1.


iShares Russell 1000 Growth ETF (IWFFree Report)

This ETF provides exposure to the large-cap growth segment of the broad U.S. equity market by tracking the Russell 1000 Growth Index. With AUM of $35.3 billion, it charges 20 bps in annual fees and sees solid trading volume of around 1.9 million shares a day on average. The ETF hit a record high of $117.92, representing a gain of about 12.7% in the year-to-date time frame. It has a Zacks Rank #2.

The PowerShares QQQ ETF (NASDAQ:QQQ) fell $0.52 (-0.37%) in premarket trading Wednesday. Year-to-date, QQQ has gained 17.84%, versus a 7.40% rise in the benchmark S&P 500 index during the same period.

QQQ currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 33 ETFs in the Large Cap Growth ETFs category.


This article is brought to you courtesy of Zacks Research.


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