In fact, 2013 was the banner year for the U.S. stock market with the biggest annual gain for the S&P 500 in 16
years and for Dow in 18 years.
Additionally, the U.S. economy is growing at the fastest pace in nearly two years with falling jobless claims, housing market recovery, robust retail sales, narrowing budget deficit and increasing consumer confidence.
Overall, the first year of Obama’s second term was positive for the market and the economy but some corners of the market have flourished more than other sectors. Below, we have highlighted three best performing sectors and the related ETFs that have benefitted hugely during President Obama’s first year of the second term.
The clean energy world has been the biggest winner from Obama’s second term thanks to the new ‘Climate Change Action Plan’ and the favorable green energy trends. Additionally, the depletion of fossil fuel reserves, higher oil and gas prices as well as efficient alternative energy applications have made clean power more viable, injecting optimism into the sector.
First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN)
This fund tracks the Nasdaq Clean Edge Green Energy Index and managed assets worth $117.8 million. It charges 60 bps in fees per year while volume is light suggesting a wide bid/ask spread (read: Will the Clean Energy ETF Surge Continue in 2014?).
In total, the product holds 43 securities in its basket with largest allocations to Tesla Motors (TSLA), Cree (CREE) and Linear Technology (LLTC). These firms together make up for 25.41% of total assets. The ETF provides a nice mix to mid and small caps with at least 40% share each. From a sector look, technology firms dominate this ETF, accounting for nearly two-fifths of the assets while oil & gas, and industrials round off to the next two spots.
QCLN surged nearly 94% in the trailing one-year period and is expected to outperform this year as well given that it has a Zacks ETF Rank of 1 or ‘Strong Buy’ rating with a ‘High’ risk outlook.