The bulls raged past the latest rounds of threats including a global cyberattack and tensions in North Korea. The global stock market scaled new highs once again with iShares MSCI ACWI ETF (ACWI – Free Report) having logged in gains of 10.5% in the year-to-date timeframe.

This is especially true given a pickup in economic activity in many parts of the world, robust corporate earnings, Trump pro-growth policies, a rebound in oil price and improving global sentiments, especially after the French election. Notably, Saudi Arabia and Russia, the world’s top two oil producers, agreed to extend their production cuts for nine more months until March 2018. This news has renewed optimism in the energy sector, which was under pressure from higher U.S. output and increased inventories weighing on the equity market.

Weakness in dollar is providing additional strength to commodity producers, leading to the rally in these stocks while WannaCry virus increased demand for technology stocks in the latest trading session.

As the rally was broad based, winners are spread across many corners of the space. Below we have highlighted a few ETFs and stocks that surged to fresh highs in recent session and could be compelling choices for investors seeking to ride out the current trends in the equity markets. All these have a top Zacks Rank #1 (Strong Buy) or #2 (Buy), suggesting that their lead will continue in the months ahead.

Further, we have plotted each of them in the chart to envision a clear view of their outperformance.

Best ETFs

iShares MSCI India Small-Cap ETF (SMIN – Free Report)

This product provides exposure to the small cap segment of the broad Indian stock market by tracking the MSCI India Small Cap Index. It is unpopular and illiquid with AUM of $185.9 million and average daily volume of 47,000 shares. The fund charges 80 bps in annual fees and has climbed about 40.8% in the year-to-date timeframe, having hit a fresh high of $46.07. It has a Zacks Rank #1.

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