Update in progress / In this post we will review the Best performing US Growth ETFs in the North America! We have selected only ETFs that had the highest return in the past 52 weeks. Also, we limited ourselves to ETFs that have asset under management (AUM) above 100 millions dollars. ETFs with low AUM tend to be less liquid and cost more when trading because of the spread (the difference between the bid and ask price) is often high.
The list is dominated by ETFs that either invest in New technologies, Cannabis/hemp sector, Metals or Small caps .
Here’s below some of the reasons these ETFs have skyrocketed:
Potential growth in global demand is pushing Uranium Stocks and ETFs higher. China unveiled plans to build 50 new nuclear plants. The new US administration is also keen on reducing its dependence on Coal and oil. There is a push for clean electricity via energy sources like nuclear power. Nuclear energy provides a low-carbon source of power that is not intermittent, unlike wind and solar.
Copper prices have gone up recently due to (Supply concern from Chile and the US administration new $2 trillion infrastructure proposal which is expected to give a boost of demand for industrial metals).
Most of the ETFs below share the risk factors below:
- Sector risk: they all have 100% exposure to a specific sector. To reduce this risk, investors should hold investments in various sectors;
- Index risk: most of the ETFs below seek to replicate an index. This makes them a passive investment. Even if within the index the manager identifies underperforming companies, he will still have to acquire them. It’s important to keep in mind that when investing in an index fund, the manager has the obligation to replicate the index in its entirety;
- All ETFs below are in a very rewarding but risky industries. These industries pave the way to either a new technology or new products. They are not mature industries, thus they are prone to setbacks.
- Commodity ETFs are very risky because most of the time they are led by market sentiment.
Table 1: Asset under management in Millions and the Management fee.
| URNM -Northshore |
Global Uranium Mining
|FCG -Natural Gas FT||518||0.60%|
| PXE -Dynamic Energy |
Exploration & Production Invesco
|UNG -US Natural Gas Fund||499||1.35%|
| PXI -DWA Energy |
|URA -Global X Uranium||1,397||0.69%|
| PSCE -S&P Smallcap |
| XOP -S&P Oil & Gas |
Expl & Prod SPDR
| IEO -US Oil & Gas |
Explor & Prod Ishares
| REMX -Vaneck Rare |
Earth Strategic Metals
Table 2: Best performing ETFs in North America in the past 52 weeks
1– URNM – Northshore Global Uranium Mining ETF
The North Shore Global Uranium Mining ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the North Shore Global Uranium Mining Index (the “Index”). The Index is designed to track the performance of companies that are involved in the mining, exploration, development, and production of uranium, as well as companies that hold physical uranium or other non-mining assets.
2- FCG -Natural Gas FT
The investment objective of the Fund is to replicate the performance of an equity index called the ISE-Revere Natural Gas™ Index.
The index itself is comprised of exchange-listed companies that derive a substantial portion of their revenues from the exploration and production of natural gas. Several criteria’s are applied in the selection process:
- proven reserves minimum
- Market capitalization
- Weighting concentration
3- PXE -Dynamic Energy Exploration & Production Invesco
The Invesco Dynamic Energy Exploration & Production ETF is based on the Dynamic Energy Exploration & Production Intellidex℠ Index (Index).
The Index is composed of securities of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy. The index will include stocks that meet several criteria’s:
- price momentum,
- earnings momentum,
- management action,
4- UNG -US Natural Gas Fund
The United States Natural Gas Fund® LP (UNG) is an exchange-traded security that is designed to track in percentage terms the movements of natural gas prices. The fund does not hold Natural Gaz stocks but rather invests in futures contract.
Transformational Data Sharing Amplify ETF (BLOK)
With all the hype surrounding cryptocurrencies, it’s no surprise that a blockchain technology ETF tops the list of the best performing ETFs in the US. This ETF is BLOK and it’s offered by AmplifyETFs. The fund invests primarily in companies involved in the development and utilization of blockchain technologies. One of the most known application of these technologies is Bitcoin and other similar cryptocurrencies. This being said, it’s not the only application. It applied in various other ways:
– Financial services: blockchain will revolutionize the way banks settle financial transactions or sell you financial products such insurances..etc.;
– Smart property: think of it as making everything that belong to you connected to each other such as you car, your home, your fridge…etc.;
– Smart contract: any service that contractual: music, health, financial products will be soon impacted by blockchain technologies!
– Blockchain identity: Governments are quite interested in investing in blockchain technology. They will be soon able to produce digital passports or provide you with Birth, wedding or death certificates all online with guarantee of very low risk of error in them. !
BLOK is very popular ETF and has 1.3 Billion dollars in asset under management.
Amplify Seymour Cannabis ETF (CNBS)
CNBS is an actively managed ETF that invests in companies that drive 50% or more of their revenue from the Cannabis and Hemp ecosystem. These companies can be small, medium or large cap. The fund’s selection of stock includes also companies that supports the industry such agricultural technology, Real Estate and Commercial Services, or Ancillary (Consumption Devices/Mechanisms, Investing & Finance, Technology & Media and Other Ancillary).
Advisorshares Pure Cannabis ETF (YOLO)
YOLO is another play in the Cannabis field. This fund is actively managed and screens the market (domestically and internationally) for companies that drive at least 50% of their net revenue from marijuana and hemp industries. 25% of the assets of the fund are in the pharmaceuticals, biotechnology and life sciences.
COPX – G-X Copper Miners ETF
The Global X Copper Miners ETF (COPX) provides investors access to a broad range of international companies active in exploration, mining and/or refining of copper. Number of holdings can range from 20 to 40. Adjustments are carried out semi-annually.
Online Retail Amplify ETF (IBUY)
This ETF tracks an index of global stocks issued by firms with revenues dominated by online retail sales. These firms must have at least 70% of their revenues from online sales. The geographic allocation of this ETF is 75% US stocks and 25% International.
XRT – S&P Retail SPDR
The SPDR® S&P® Retail ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Retail Select Industry® Index. The retail segment of the S&P TMI comprises the following sub-industries: Apparel Retail, Automotive Retail, Computer & Electronic Retail, Department Stores, Drug Retail, Food Retailers, General Merchandise Stores, Hypermarkets & Super Centers, Internet & Direct Marketing Retail, and Specialty Stores.
S&P Smallcap Consumer Discretionary Invesco – PSCD
In 7th position, we have a small cap ETF. The Invesco S&P SmallCap Consumer Discretionary ETF (Fund) is based on the S&P SmallCap 600® Capped Consumer Discretionary Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index.
Companies part of the index are engaged in consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and real estate. PSCD is balanced in a quarterly basis.
SPDR S&P Kenso Smart Mobility – HAIL
HAIL invests in companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems.
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REMX – Rare Earth/Strategic Metals Vaneck ETF
VanEck Vectors® Rare Earth/Strategic Metals ETF (REMX®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Global Rare Earth/Strategic Metals Index (MVREMXTR), which is intended to track the overall performance of companies involved in producing, refining, and recycling of rare earth and strategic metals and minerals.
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