Anyone who follows the markets knows that while some exchange traded funds (ETFs) might be down, other areas and ETFs are heading in the other direction.
In our current bear market, there have bee several ETFs that have managed to remain a step ahead. In fact, they are ahead. The traditional recession-free zones were no more in this market, and they certainly weren’t considered inflation fighters, reports Gary Gordon for ETF Expert.
Among the funds that bucked the bear trend include:
- iShares Biotechnology Fund (IBB): This ETF is actually showing less volatility than the S&P 500, with a low beta of 0.7%, says Gordon. Biotech has 6% on gains for the year with Amgen, Teva and Gilead gaining interest again. It’s up 9.4% year-to-date.
- Merrill Lynch Broadband HOLDRs (BDH): Qualcomm can be credited for the success of broadband. And BDH holds over 50% towards this company. The fud is up 2.8% year-to-date.
- iShares Dow Jones Transportation Sector (IYT): This sector is indicative of a true rebound for domestic stock assets. UPS and FedEx are expanding overseas, and railroad companies gain from infrastructure in the U.S. So far, IYT is chugging in 10% gains. Up 9.7% year-to-date.
- Market Vectors Environmental Services (EVX): This ETF focuses on companies that manage, remove and store consumer waste, spread over 23 companies. It is currently above its 200-day movig average. It’s up 3.2% year-to-date.
- HealthShares Cardio Services (HHE): This ETF is up 6.2% and is beating broader ETFs in the health care sector. The focus here are companies that manufacture or distribute devices for the treatment of cardiac, vascular and endovascular disorders and diseases.
For full disclosure, Tom Lydon’s clients own shares of IBB.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.