8 ETFs Up More Than 25% YTD

Braving all evils of emerging market and trade war fears, the S&P 500 index is on track to record the longest bull run in history. The benchmark is now up for 3,452 days and Aug 22 will mark 3,453 days since the S&P 500 hit its low of 666 on Mar 9, 2009. Since then, the index has risen more than 300% and is up more than 7% so far this year.

The latest rally was driven by strong earnings, booming economic growth and optimism over trade talks between the United States and China. Per Trump, “the United States is on track to hit the highest annual growth rate in over 13 years.” The U.S. economy has been witnessing the fastest pace of growth in nearly four years thanks to the historic tax cuts, infrastructure investment, higher government spending, deregulation, rising wages, record unemployment, rising consumer confidence and higher spending. A rising rate scenario also signals strengthening the economy, which is spurring growth in the stock market.

The wave of mergers and acquisitions also added to the strength. Additionally, the global economy continues to expand at a steady pace despite turmoil in some emerging markets like Turkey and Venezuela.

While there have been winners in many corners of the space, we highlight eight ETFs that have outperformed and gained more than 25% in the year-to-date time frame. These are also expected to continue outperforming, provided the fundamentals remain intact.

Invesco S&P SmallCap Health Care ETF (PSCH – Free Report) – Up 41.2%

This ETF got a dual boost from its sector’s non-cyclical nature and its small-cap focus. Small-cap stocks are well insulated from international headwinds and are considered safe and better plays if any political issue or economic turmoil creeps into the picture. Additionally, encouraging sector fundamentals, tax reform, rising M&A activities and positive regulatory backdrop added to the strength. PSCH provides exposure to the healthcare sector of the U.S. small-cap segment, charging 29 bps in annual fees and has amassed $1 billion in its asset base. It is home to 70 stocks and sports a Zacks ETF Rank #1 (Strong Buy) with a High-risk outlook.