- ETFs are considered a safer way to invest in the stock market for new investors.
- They charge a fee for managing the ETFs, called the expense ratio.
- ETFs are available for almost all the market segments.
Exchange-Traded Funds (ETF) are usually safer for investors to invest in the market. Though direct stock investment may give investors good returns, it is risky at the same time due to being exposed to single stocks. So, until the investors have in-depth knowledge of the sector and the company, they may opt for the ETF route to get acquainted with the stock market.
ETFs come in varieties ranging from growth ETFs, Gold ETFs, inflation ETFs, etc. ETFs are an easy and cost-effective way for investing in stocks. A growth ETF invests in the shares of hundreds of companies with high growth in their earnings.
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Here, we discuss seven ETFs that gave more than 55% in returns year-to-date.
ProShares UltraPro QQQ (TQQQ)
The ETF is a leveraged fund that provides times the exposure of the Nasdaq 100 Index over only a one-day holding period. The underlying index includes Nasdaq-listed companies based on market capitalization, excluding financial stocks.
Its issuer is ProShares. The Proshares UltraPro QQQ ETF tracks the Nasdaq 100 Index. It was started in 2010. It is an open-ended fund with an expense ratio of 0.95%.
It has nearly US$20.63 billion in assets under management (AUM). TQQQ’s average daily dollar volume is US$6.53 billion, and the average daily share volume is 41,678,587. The ETF consists of 107 securities.
The ETF generated a 84.24% return YTD and over 100% in one year. The closing price on December 14 was US$155.5.
The ETF traded in the range of US$183.36 to US$75.03 in the last 52 weeks.
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ProShares UltraPro S&P500 (UPRO)
The UPRO is a leveraged fund aimed as a short-term tactical instrument. It also delivers three times the exposure for a single day holding period. The fund provides daily exposure to the market-cap-weighted index consisting of large and midcap companies in the US, selected by the S&P 500 committee under a selection methodology.
ProShares-issued UPRO tracks the S&P 500. It was started in June 2009. The ETF is an open-ended fund and has an expense ratio of 0.93%. The fund currently has US$3.58 billion worth of assets under management.
It holds around 508 securities. Its average daily share volume is 4,839,861, and the average daily dollar volume is US$654.98 million.
The ETF recorded 87.21% return YTD and 100.17% in one year. The net asset value (NAV) on December 14, 2021, was US$141.02.
The ETF traded in the range of US$151.69 to US$69.86 in the last 52 weeks.
Direxion Daily S&P 500 Bull 3X Shares (SPXL)
SPXL is a leveraged product for use as a short-term investment instrument to get three times the exposure to the S&P 500. The ETF has exposure to futures and other derivatives too.
Its issuer is Direxion, and the fund tracks the S&P 500 Index. SPXL’s inception date is November 2008. The open-ended fund has an expense ratio of 1.01%. It consists of six holdings currently.
It has currently US$3.52 billion of assets under management. The fund has an average daily share volume of 6,436,059 and an average daily dollar volume of US$820.81 million.
The ETF recorded 87.30% return YTD and 100.37% in one year. The closing price on December 14, 2021, was US$132.57.
The ETF traded in the range of US$142.60 to US$65.71 in the last 52 weeks.
SPDR S&P Oil & Gas Exploration & Production (XOP)
XOP provides exposure to the US oil and gas exploration and production companies in the S&P Total Market Index. The equal weightage approach of the ETF to select securities offer exposure to all the companies in the segment, including small and midcaps.
State Street Global Advisors issued the ETF. It was started in 2006. The fund tracks the S&P Oil & Gas Exploration & Production Select Industry index.
XOP is an open-ended fund and has an expense ratio of US$0.35%. The fund has US$3.48 billion of assets under management, and its weighted average market cap is US$22.18 billion. The ETF has 56 securities under current holdings.
Its next dividend date is December 20, 2021. Its P/B ratio is 1.58.
XOP recorded a 75.72% return YTD and 62.21% in one year. The closing price on December 14, 2021, was US$95.27.
The ETF traded in the range of US$112.85 to US$55.94 in the last 52 weeks.
Global X Uranium ETF (URA)
The URA ETF offers exposure to companies engaged in uranium mining and production. The fund tracks the market cap-weighted index of companies in the nuclear component segment. The index is rebalanced semi-annually.
Its issuer is Mirae Asset Global Investments Co., Ltd. The fund was started in 2010 and has an expense ratio of 0.69%. The fund is open-ended and has US$1.26 billion assets under management, and the weighted average market cap is US$9.03 billion. Its average daily share volume is 2,155,618.
It tracks the Solactive Global Uranium & Nuclear Components index. The ETF consists of 45 holdings. URA generated a 57.92% return YTD and 74.33% in one year. The closing price on December 14, 2021, was US$23.02.
The ETF traded in the range of US$31.60 to US$14.40 in the last 52 weeks.
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ProShares Ultra Technology (ROM)
ROM is a leveraged product offering two times the exposure to the market-cap weighted index of the Dow Jones US Technology Index. The fund is suitable for short-term investment like other levered funds.
The ETF was started in 2007. Its expense ratio is 0.95%, and AUM is US$1.19 billion. It tracks DJ Global United States (All) / Technology index. The fund has 173 holdings in the portfolio.
Its average daily share volume is 65,486, and the average daily dollar volume is US$7.66 million.
It generated 76.58% return YTD and 90.2% in one year. The closing price on December 14, 2021, was US$122.13.
The ETF traded in the range of US$135.00 and US$66.35 in the last 52 weeks.
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VanEck Rare Earth/Strategic Metals ETF (REMX)
The REMX ETF takes exposure in rare earth metals. It invests in the large and the most liquid stocks of companies that generate around 50% of revenue from the rare earth and strategic metals segment.
VanEck is the issuer of the fund started in 2010. The ETF has an expense ratio of 0.59% and an AUM of US$1.11 billion. The open-ended fund’s weighted average market capitalization is US$11.71 billion.
It tracks the MVIS Global Rare Earth/Strategic Metals Index. Its average daily share volume is 193,370. The fund consists of 21 securities in its portfolio.
It generated 80.51% return YTD and 109.50% in one year. The closing price on December 14, 2021, was US$113.89.
The ETF traded in the range of US$126.01 and US$56.74 in the last 52 weeks.
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Investors have to be well-informed about ongoing developments for investing directly in stocks. At the same time, they may be more comfortable if they invest in ETFs because the vast and diversified portfolios reduce risk and optimize returns. These are perhaps best suitable for people with no time and knowledge to manage their portfolio directly.