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Beyond Biotech, 5 ETFs Up At Least 10% in Q4

Sanghamitra Saha

Biotech stocks and ETFs have been going through the roof in the fourth quarter. Mergers and acquisitions, especially in the hot cancer treatment space, positive drug data, FDA approvals, upbeat financials and decent valuations are making the space a clear winner. As a result, Virtus LifeSci Biotech Clinical Trials ETF BBC is up as much as 51% this quarter, thus being the the best ETF of the quarter so far (read: Why Biotech ETFs are Surging to New Highs).

Other biotech ETFs have also joined the rally with ALPS Medical Breakthroughs ETF SBIO adding 34.5% and Global X Genomics & Biotechnology ETF GNOM gaining 28.7% and so on. But the ongoing quarter is not just about biotech. There are other ETFs that are seeing solid momentum. Below we highlight a few:

iPath Series B Bloomberg Coffee Subindex Total Return ETN JO – Up 29.3%

Coffee futures in the March contract is hovering around a two-year high thanks to concerns over a drought developing in Brazil— a key coffee producer in the world. Also, a decline in Brazilian currency  (due to emerging market weakness, a host of interest rate cuts and disappointing results from a much-hyped oil auction at the start of November) boosted the prices of the commodity. Commodities are often priced in the U.S. dollar, so a decline in the exchange rate means higher prices in terms of local currency (read: Top & Flop ETFs of November).

Global X MSCI Pakistan ETF PAK – Up 26.9%

The Pakistan Stock Exchange has been riding high of late. “Positive economic indicators, possible monetary easing and a thaw in border tensions with India” are probably driving the rally. Financial markets are expected to be more regulated as Pakistan intends to start a circuit breaker at the beginning of next year to soothe sudden swings in the equity index. A move of 4% will initiate a breaker or trading halt. The stock exchange is also upgrading its trading platform and launching new products to boost liquidity, per Blomberg. Pakistan has successfully cleared the first quarterly review with the IMF, important for the disbursement of the Extended Fund Facility worth $6 billion.

Global X MSCI China Real Estate ETF CHIR – Up 16.7%

China has been witnessing a red hot real-estate market with property prices surging in big cities. In any case, Chinese shares have been benefiting in recent trading on trade deal hopes by mid-December. Affordable home loans are another positive.

ETFMG Prime Junior Silver ETF SILJ – Up 15.3%

With the Fed remaining dovish, the U.S. dollar remained subdued. Invesco DB US Dollar Index Bullish Fund UUP has lost 0.5% in the past three months (as of Dec 11, 2019). This boosted metal prices as these are mostly priced in the greenback. Also, silver acts as a safe-haven asset and gets a boost from geopolitical tensions. SILJ provides direct global exposure to small-cap securities in the silver mining exploration and production industry by tracking the Prime Junior Silver Miners & Explorers Index.

Claymore/Delta Global Shipping SEA – Up 14.3%

Very large crude carriers’ (VLCC) rates spiked to all-time highs in October. The reasons were the Trump administration’s imposition of sanctions on certain Chinese tanker companies, including Cosco (Dalian), on Sep 25. Notably, these sanctions were levied for carrying crude to China from Iran.

Plus, Platts Analytics expects about 60 VLCCs to move to dry docks in the fourth quarter ahead of the implementation of IMO 2020 regulations. Each scrubber installation requires around one month. As a result, SEA gained about 10% in the past month (read: Top and Flop ETFs of October).

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Virtus LifeSci Biotech Clinical Trials ETF (BBC): ETF Research Reports
 
Global X MSCI Pakistan ETF (PAK): ETF Research Reports
 
ALPS Medical Breakthroughs ETF (SBIO): ETF Research Reports
 
iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO): ETF Research Reports
 
Invesco Shipping ETF (SEA): ETF Research Reports
 
Invesco DB US Dollar Index Bullish Fund (UUP): ETF Research Reports
 
Global X Genomics & Biotechnology ETF (GNOM): ETF Research Reports
 
ETFMG Prime Junior Silver Miners ETF (SILJ): ETF Research Reports
 
Global X MSCI China Real Estate ETF (CHIR): ETF Research Reports
 
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