5 ETFs to Be Thankful for This Year-to-Date
This article was originally published on ETFTrends.com.
Thanksgiving week didn't get started with much to be thankful for on Monday as volatility decided to crash the pre-Turkey Day festivities, but with still three market sessions left in this short week, a rally could be brewing.
The Dow Jones Industrial Average fell 395 points Monday as technology names like Nvidia and Salesforce.com weighed heavily on the sector. The S&P 500 and Nasdaq Composite didn't fare much better with both falling 45 points and over 200 points, respectively.
Apple and semiconductors dragged down the Nasdaq as it shed 3% on Monday, dipping the index deeper into correction territory.
“People put a lot of faith in tech companies to drive the markets higher, and to the extent that’s not happening, that’s very disappointing,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance. “We’d need to see bullish company specific news from one of the tech megacaps for investors to drive the prices higher, or we’d need the Fed to take a pause, or fear of a global growth slowdown to ease. We’re not seeing that.”
All in all, the doom and gloom inundating the markets is akin to seeing family members reconvene on Thanksgiving--amidst all the bickering, you also remember the good times and as such, here are some exchange-traded funds (ETFs) from various sectors to be thankful for thus far this year.
1. ProShares Ultra Bloomberg Natural Gas (BOIL)
After years of a supply glut, natural gas has fallen back into investors' favor, punishing short sellers in the process as natural gas prices have spiked on reduced supply this winter season. This, of course, has been a boon to BOIL, whichh as gained 68.89% year-to-date.
BOIL seeks results for a single day that match two times the daily performance of the Bloomberg Natural Gas SubindexSM. The fund seeks to meet their investment objectives by investing under normal market conditions in Natural Gas futures contracts.
BOIL may also invest in swaps if the market for a specific futures contract experiences emergencies or disruptions that would prevent or make it impractical for such fund to obtain the appropriate amount of investment exposure to the affected Natural Gas futures contracts directly.
2. Direxion Daily Jr Gold Miners Bear 3X ETF (JDST)
Rising rates have contributed to a rising dollar, dulling the luster of gold thus far in 2018. Not a problem for JDST, which has returned 43.43% YTD.
JDST seeks daily investment results equal to 300% of the inverse of the daily performance of the MVIS Global Junior Gold Miners Index. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80% of the fund's net assets. The index tracks the performance of foreign and domestic micro-, small- and mid-capitalization companies.
3. ProShares UltraShort Silver (ZSL)
Of course, a rising dollar will also benefit a silver bear just as much a gold bear. ZSL, for example, has returned investors 35.89% YTD.
ZSL seeks results for a single day that match two times the inverse (-2x) of the daily performance of silver bullion as measured by the London Silver Price. The fund seeks to meet its investment objective by investing under normal market conditions in any one of, or combinations of, Financial Instruments based on the fund’s benchmark. In addition, ZSL may invest up to 100% of its assets in any of these types of cash or cash equivalent securities.
4. Invesco S&P SmallCap Health Care ETF (PSCH)
The technology sector may get a lot of the credit for the decade-long bull run, but in 2018, healthcare was as steady as she goes. PSCH returned investors 26.97% YTD.
PSCH seeks to track the investment results of the S&P SmallCap 600® Capped Health Care Index. The fund generally will invest at least 90% of its total assets in common stocks of small capitalization U.S. healthcare companies that comprise the underlying index. These companies are principally engaged in the business of providing healthcare-related products, facilities and services, including biotechnology, pharmaceuticals, medical technology and supplies.
5. Direxion Daily MSCI Emerging Markets Bear 3X ETF (EDZ)
The trade wars have taken a toll on emerging markets and bearish plays like EDZ have benefitted. EDZ, in particular, has returned 23.98% YTD and until emerging markets can stage a comeback in 2019, this trend is likely to continue.
EDZ seeks daily investment result of 300% of the inverse of the daily performance of the MSCI Emerging Markets IndexSM. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80% of the fund's net assets.
The index is a free float-adjusted market capitalization weighted index that is designed to represent the performance of large- and mid-capitalizations securities across the 24 emerging market countries.
Related: SSGA Continues to Adapt in Ever Evolving ETF Industry
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