The Best Performing ETFs of 2020
The performance of stocks in 2020 may have seen some volatility due to the pandemic, but overall, the show has been grand. The S&P 500 has bounced back with new vitality, shrugging off the downturn caused by COVID-19.
The performance of stocks in 2020 may have seen some volatility due to the pandemic, but overall, the show has been grand. The S&P 500 has bounced back with new vitality, shrugging off the downturn caused by COVID-19. It has claimed a 15% return in 2020. In specific niches of the stock market, the way some companies have performed is even better. The ascent of these has been largely due to frenzied buying behavior of these stocks. Certain ETFs have seen astronomical growth, with a minimum of 110% gains among the best performing ones (in the top 10 categories). Among the top 20 ETFs, the lower rung hasn't done too shabbily either, posting gains of 94%. 10 Best-Performing ETFs of 2020 (yahoo.com) In this article, the best performing ETFs that are the talk of the town are explored.
ARK ETFs are Top-notch
The year 2020 has been generous to the ETF called ARK Invest. The company has, in its docket of successes, some top-of-the-line funds of the current year. At No.1, it is proud to boast of one of the best ETFs of the year, the ARK Revolution in Genomics. The gains of this ETF stand at approximately 180%. The ARK Revolution in Genomics is an ETF that focuses on thematic healthcare genomics. Basically, it is the study of an organism's complete set of genes. The field of genomics has achieved great importance as DNA sequencing has tumbled because of the high costs involved. New research in the genomics field is a welcome cost-effective change. Innovation ETFs by ARK Invest | Innovation is Key to Growth (ark-funds.com)
A lot of the portfolios of ARK include biotech companies that delve into research on cancer cures and treatments, as well as other rare diseases. Gene evaluation and gene editing companies can be found in their range of portfolios too. With an exclusive focus on genomics, the investment firm has gained from being the only ETF with links to healthcare.
Other ARK ETFs
ARK has other ETFs under its spectrum of ETFs that have seen substantial gains in 2020. With next-gen internet ETFs as well as Fintech Innovation, many ETFs under ARK's umbrella are set to see highs in the near future. Each of these ETFs is involved with IoT and next-gen technology, such as in the fields of robotics and cloud computing. With the pandemic taking over the global atmosphere, these technologies have garnered importance as remote work has become the norm. ARK has placed itself in a strategically positive position.
Besides ARK, leading from the top, there have been ETF gains in other sectors. One of the most swiftly growing of these is e-commerce. Again, due to the incumbent pandemic, online shopping has increased ten-fold. Physical retailers are no longer the trend. A couple of e-commerce ETFs that target online portals have done well, and taken advantage of pandemic-accelerated online shopping activity. One online retail ETF, Amplify has seen triple-digit gains this year. ProShares has performed in a somewhat similar way. O'Shares, holding a variety of blue-chip stocks like Amazon, Facebook and Alibaba doubled its profits in 2020.
KNOWLEDGE CENTER - Amplify ETFs
Cloud Computing Wins
With most of the world working remotely in 2020, cloud computing fields have rocketed skyward in terms of share prices and profitability. Wisdom Tree, a cloud computing fund that saw 101% in its growth, is all set to go further and farther. A fund that rules other ETFs as it focuses on cloud computing resources of storage via the internet, Wisdom Tree is touted to be the leader in this growing technology domain. WisdomTree - ETFs (Exchange Traded Funds) & ETF Investments.
Clean Energy ETFs
The reign of the technology sector in the top-performing ETFs of 2020 is quite evident. Nonetheless, other sectors made a comeback, and these were much talked about. Several of the top-gain ETFs in the 20 best ETFs of 2020, were from the alternate energy (clean and green energy) sector. These stocks (Solar Invesco, Wider Hill Clean Energy, etc.) plummeted to the top position as there was an all-round sentiment that Biden would become a supportive President. Indeed, when that actually happened, this sector's ETFs have skyrocketed even more, as Biden is predicted to back sustainability of the environment.