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5 Best-Performing Stocks of the Top ETF of February

Amplify Transformational Data Sharing ETF BLOK topped the list of the best-performing ETFs in February with impressive returns of about 31.8%.

Most of the rally was driven by the crazy run for cryptocurrency - bitcoin. The digital currency rose over $58,000 buoyed by investors’ enthusiasm that it will become a mainstream investment and payments vehicle before retreating in the final days of the month. Big companies are also stepping up in support of cryptocurrencies of late. The crypto is not a blockchain but an application running on the blockchain technology (read: More Good News for Bitcoin: ETFs in Focus).

Bill Belden, President of Amplify ETFs, projects the global blockchain market to grow from $3 billion in 2020 to $39.7 billion by 2025, at a compound annual growth rate of 67.3%. This growth will be driven by three main sources, venture funding, enterprise investment in blockchain technology, and the rise of blockchain solutions for supply chain management. Belden sees greater geographic expansion into emerging markets and the potential growth of private blockchains that will continue to maintain the popularity of BLOK.

Additionally, blockchain technology has a wide range of applications that could benefit from the transparent distribution ledger, which includes central bank digital currencies, digital identity, supply chain management, health care, life sciences, food safety, voting, charitable donations, and real estate. Further, the COVID-19 crisis has accelerated the trend toward a cashless society with digital currency solutions. Worldwide spending on blockchain solutions will increase post the pandemic.

Let’s take a closer look at the fundamentals of BLOK.

BLOK in Focus

This fund is actively managed, providing investors global exposure to a basket of the leading companies engaged in the development and utilization of blockchain technologies. It holds a basket of 55 stocks with none accounting for more than 6% of the portfolio. American firms dominate about 56.8% of the portfolio, followed by Asia Pacific (36.8%). From an industrial look, software & services takes the largest share at 41.3% while diversified financials, and media & entertainment round off the next two spots with double-digit exposure each.

The ETF recently hit the billion-dollar AUM mark. It now has $1.2 billion in its asset base and trades in average daily volume of 952,000 shares. The fund has an expense ratio of 0.71%.

Though most of the stocks in the fund’s portfolio delivered strong returns, a few have gained more than 30% in February. This is because BLOK portfolio includes many new small and midcap companies that are directly involved with blockchain technology having gone public in the past few years and thus has strong growth potential (read: All About Bitcoin's Mainstream Acceptance & Blockchain ETF).

Below we have highlighted the five best-performing stocks in the ETF with their respective positions in the fund’s basket:

Best-Performing Stocks of BLOK

Canaan Inc. Sponsored ADR CAN: This Canada-based company provides specialty software. The company develops supercomputing chips for digital blockchain computing equipment, as well as supplies computer software and hardware products. The stock occupies the fifth position in the fund’s basket with 4.6% allocation. It has gained about 194.4% in a month (read: Why Blockchain ETFs Are Soaring).

Riot Blockchain Inc. RIOT: This Colorado-based company is focused on building, supporting, and operating Blockchain technologies ecosystem. It is involved in digital currency mining operation, which utilizes specialized computers that generate digital currency primarily bitcoin. It has gained 103.6% in a month. The stock takes the seventh spot in BLOK at 3.7% share. It has a Zacks Rank #2 (Buy) and a Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Opera Limited Sponsored ADR OPRA: This Norway-based company provides mobile and PC web browsers. It makes up for 1.3% allocation in the fund basket. Opera has also delivered incredible returns of about 44% in a month. The stock has a Zacks Rank #3 (Hold) and a Momentum Score of B.

Marathon Patent Group Inc. MARA: This is a patent and patent rights acquisition and licensing company based in Virginia. The stock takes the eighth spot in the fund’s basket with 3.4% of the assets. It has gained 32.6% in a month. HEXO has a Zacks Rank #3 and a Momentum Score of A.

Ebang International Holdings Inc. EBON: This application-specific integrated circuit ASIC chip design company as well as manufacturer of Bitcoin mining machines is based in China. The stock is up about 31% in a month and accounts for 2.2% of the total assets.

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Marathon Patent Group, Inc. (MARA) : Free Stock Analysis Report
Canaan Inc. Sponsored ADR (CAN) : Free Stock Analysis Report
Riot Blockchain, Inc. (RIOT) : Free Stock Analysis Report
Opera Limited Sponsored ADR (OPRA) : Free Stock Analysis Report
Ebang International Holdings Inc. (EBON) : Free Stock Analysis Report
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