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A Spread of Top-Ranked ETFs That Crushed the Market in Q1

Sweta Killa

The global stock market has impressed investors’ with the stunning performances in the first quarter. The MSCI All-Country World Index, which tracks shares in 47 countries, recorded its best quarter since 2010. The enthusiasm mostly emanated from optimism surrounding the US-China trade deal and the Chinese government’s stimuli to revitalize economic growth. Rebound in oil price added to the strength.

Additionally, raft of soft economic data worldwide fueled expectations that the world's most powerful central banks are likely to continue their stimulus plans, in turn providing a boost to investors’ sentiment despite Brexit and fears of a recession weighing on the stocks (read: ETFs That Topped & Flopped in Q1).

Notably, Wall Street hogged the limelight with the best quarter of broad-based gains in a decade. The S&P 500 index climbed 13.1% in the first quarter, marking the biggest quarterly gain since the third quarter of 2009 and its best first quarter since 1998. The Dow Jones Industrial Average rose 11.2% in the first quarter while the Nasdaq advanced 16.5%. Meanwhile, small caps stocks, as represented by the Russell 2000 index, outperformed the S&P 500 with growth of 14.2%.

While there have been winners in many corners of the space, several ETFs have easily crushed the market by wide margins. Below, we are presenting a bunch of top performing ETFs of the first quarter with a solid Zacks ETF Rank #1 (Strong Buy) or 2 (Buy) which are expected to outperform in the quarter ahead.

Xtrackers Harvest CSI 300 China A-Shares Fund ASHR – Up 31%

This fund offers exposure to the China A-share market by tracking the CSI 300 Index and holds a basket of 303 stocks with each accounting for less than 7% of assets. The fund has amassed $2.2 billion in its asset base and charges 66 bps per year. It has a Zacks ETF Rank #2 (read: China A-Shares ETFs to Roar Higher on MSCI Move).

KraneShares Bosera MSCI China A Share ETF KBA – Up 30.4%

This fund follows the MSCI China A Inclusion Index, which tracks the progressive partial inclusion of A shares in the MSCI Emerging Markets Index over time. Holding 318 securities in its basket, it is widely diversified across components with each accounting for less than 3.3% share. It has accumulated $560.9 million in its asset base and charges 0.60% in expense ratio. KBA has a Zacks ETF Rank #2.

Xtrackers MSCI China A Inclusion Equity ETF ASHX – Up 29.8%

With $140.7 million in AUM, this fund follows the MSCI China A Inclusion Index and holds 240 securities in its basket with none accounting for more than 5.31% of assets. It charges 60 bps in annual fees and a Zacks ETF Rank #2.

Invesco DWA Technology Momentum ETF PTF – Up 28.7%

This fund follows the Dorsey Wright Technology Technical Leaders Index and provides exposure to companies that exhibit relative strength (momentum). Holding 36 stocks in the basket, it is well spread across components with each accounting for less than 5% share. PTF is illiquid and relatively unpopular with AUM of $142.9 million. It has a Zacks ETF Rank #2 (read: 4 Market-Beating Sector ETFs of the First Quarter).
    
Virtus LifeSci Biotech Products ETF BBP – Up 28.4%

The ETF follows the LifeSci Biotechnology Products Index, which measures the performance of biotechnology companies with at least one drug therapy approved by the FDA. Holding 36 stocks, the product has moderate concentration across components with each holding less than 6% share. The product has accumulated AUM of about $38.1 million and charges 79 bps in fees per year. BBP has a Zacks ETF Rank #2.

Invesco Golden Dragon China ETF PGJ – Up 28.3%

This fund follows the NASDAQ Golden Dragon China Index, which offers exposure to the US exchange-listed companies that are headquartered or incorporated in the People’s Republic of China. It holds a basket of 64 stocks with each accounting for less than 10% share. The product has AUM of $206.4 million and charges 70 bps in annual fees. It has a Zacks ETF Rank #2.

SPDR S&P Software & Services ETF XSW – Up 26.7%

This fund targets the software and services segment and follows the S&P Software & Services Select Industry Index. It holds 157 stocks in its basket with each accounting for less than 1% share, charging 35 bps in annual fees. XSW has accumulated $212.3 million. It has a Zacks ETF Rank #1.

SPDR S&P Biotech ETF XBI – Up 26.2%

With AUM of $4.4 billion, XBI offers exposure to the biotechnology segment of the healthcare space. It tracks the S&P Biotechnology Select Industry Index, providing exposure to 119 stocks. It charges an annual fee of 35 bps and has a Zacks ETF Rank #2 (read: 4 Sector ETFs That Crushed S&P 500 in Decade-Old Bull Run).

Principal Healthcare Innovators Index ETF BTEC – Up 26.1%

This fund offers access to early-phase companies developing treatments for conditions like migraines, Crohn’s disease, multiple Sclerosis, diabetes, and other illnesses by tracking the Nasdaq Healthcare Innovators Index. It holds 194 stocks in its basket with none making up for more than 4.2% of assets. BTEC charges 42 bps in annual fees. The product has accumulated $57.3 million in its asset base. It has a Zacks ETF Rank #2.

Invesco Russell MidCap Pure Growth ETF PXMG – Up 25.8%

This fund tracks the Russell Midcap Pure Growth Index, which is composed of securities with strong growth characteristics selected from the Russell Midcap Index. It holds 95 securities in its portfolio, charging 39 bps in annual fees. The fund has AUM of $554 million and a Zacks ETF Rank #1 (read: Top-Ranked ETF Winners in Dow's Longest Rally in 24 Years).