Wall Street extended its best quarterly gains in decades last week despite the increase in coronavirus cases. The United States registered the largest single-day increase in new COVID-19 infections globally for the second day in a row on Jul 9. About 41 of the 50 U.S. states reported an increase in cases over the last two weeks, forcing Americans to take new precautions, with several states backing down on reopening plans.
Notably, the Dow Jones rose 1% and the S&P 500 gained 1.8%. The Nasdaq outperformed with gains of 4%. The technology surge has supported the rally with four of the five tech titans topping a trillion dollar each in market capitalization.
The gains came even with weak earnings expectation for the second quarter. The S&P 500 earnings are expected to decline 44.4% on 10.9% lower revenues. This would be the biggest quarterly profit decline since the financial crisis.
Against such a backdrop, a few ETFs gained handsomely last week. Here are five of them:
Global X Lithium & Battery Tech ETF LIT – Up 12.4%
Tesla’s TSLA strong surge helped this fund emerge the biggest winner last week. The product provides global exposure to a broad range of firms engaged in lithium mining, refining and battery production by tracking the Solactive Global Lithium Index. It holds 44 securities in its basket with each accounting for single-digit share. The fund has amassed $657.1 million in AUM and charges 75 bps in annual fees (read: 5 ETFs to Drive High on Tesla’s Solid Q2 Deliveries).
MicroSectors FANG+ ETN FNGS – Up 12%
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next generation technology and tech-enabled companies. It holds 10 stocks in equal weights of 10% each in its basket and charges 58 bps in annual fees. The product has accumulated $50.5 million in its asset base and trades in average daily volume of 9,000 shares.
First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN – Up 11.3%
Growing consumer electric vehicle adoption, state expansions of charging infrastructure, falling battery prices and increased solar panel installations are acting as a tailwind for the U.S. clean energy sector. This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $294.7 million. It charges 60 bps in fees per year while trading in volume of around 111,000 shares per day. In total, the product holds 44 securities and has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Clean Energy Sector Shines Last Week: Top-Performing ETFs).
iShares MSCI Global Silver Miners ETF SLVP – Up 10.5%
Silver price is being driven by optimism over the pickup in industrial demand as the economy has reopened after several months of coronavirus-driven shutdowns. This fund follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors exposure to companies that derive the majority of revenues from silver exploration or metals mining. It holds 29 stocks in its basket with Canadian firms making up the lion’s share at 66.4%. SLVP has AUM of $163.8 million and average daily volume of about 161,000 shares. It charges 39 bps in annual fees (read: 2 Top Sectors of Q2 & Their Top ETFs).
ARK Next Generation Internet ETF ARKW – Up 9.5%
The fund’s strong performance has been driven by the e-commerce boom and the shift in consumer habits to a purely digital world with work, entertainment and shopping from home during the COVID-19 pandemic. This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to cloud, enabling mobile, new and local services. The fund holds 47 stocks in its basket with AUM of $1.8 billion. It trades in average daily volume of 347,000 shares and charges 76 bps in annual fees from investors.
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