Riding out tax hikes, interest rate risk and geopolitical tensions, the broad equity markets touched historic highs this year, with alternative energy, biotech and technology stock exchange traded funds leading the pack.
In the technology space, social media stocks are experiencing robust gains on increased global connectivity, especially in the emerging markets where internet use is on the rise. The social media ETF, once criticized by some as a gimmicky investment strategy, is leaving the rest of the market in the dust. [Beyond Facebook: Other Reasons to Friend Social Media ETF]
Further more, the tech sector has been leading the charge in the emerging markets space, bolstering returns in broad emerging market ETFs with a heavy emphasis on technology stocks. [KraneShares Looks to Solve China Internet ETF Asset Conundrum]
Meanwhile, biotech companies are outperforming in the health care space. The sector could benefit from the aging population, rise in chronic diseases due to the older population, growing emerging market demand, new discoveries, increased merger and acquisitions activity, and the implementation of the Affordable Care Act, or “Obamacare.” [Three ETFs to Play Up-and-Coming Health Care Companies]
Lastly, clean energy ETFs are cleaning up, rebounding off multi-year lows as more energy conscientious consumers go green. For instance, it is estimated that solar photovoltaic panel installations in the U.S. could go up every 83 seconds by 2016. [Solar ETF’s 90% Rally May Only be the Beginning]
Moreover, alternative energy-related ETFs have a global footprint, with exposure to performing markets like China and Japan. [Clean Energy ETF May Have the Perfect Combination]
Check out the top performing non-leveraged ETFs of 2013.
Next page: #10 First Trust ISE Global Wind Energy Index Fund
The First Trust ISE Global Wind Energy Index Fund (NYSEArca: FAN) is up 55.7% year-to-date.
FAN tries to reflect the performance of the ISE Global Wind Index, which tracks companies that are engaged in the wind energy industry, including development or management of a wind farm, production or distribution of electricity generated by wind power, involvement in the design, manufacture or distribution of machinery for the wind energy industry.
Next page: #9 Market Vectors Biotech ETF
The Market Vectors Biotech ETF (NYSE MKT: BBH) is up 55.7% year-to-date.
BBH tries to reflect the performance of the Market Vectors US Listed Biotech 25 Index, which tracks 25 of the largest U.S.-listed biotech stocks.
Next page: #8 PowerShares Dynamic Biotechnology & Genome Portfolio
The PowerShares Dynamic Biotechnology & Genome Portfolio (NYSEArca: PBE) is up 56.9% year-to-date.
PBE tries to reflect the performance of the Dyanmic Biotechnology & Genome Intellidex Index, which is comprised of biotech and genome companies that engage in the research, development, manufacture and marketing and distribution of various biotech products, services and processes and companies that benefit from advances in biotech and genetic engineering. The Fund’s underlying index is fundamentally weighted and selects components based on price momentum, earnings momentum, quality, management action and value.
Next page: #7 PowerShares Gold Dragon China Portfolio
The PowerShares Gold Dragon China Portfolio (NYSEArca: PGJ) is up 57.2% year-to-date.
PGJ tries to reflect the performance of the Nasdaq Gold Dragon China Index, which is comprised of U.S.-listed companies headquartered or incorporated in the People’s Republic of China.
Next page: #6 Global X Social Media Index ETF
The Global X Social Media Index ETF (NYSEArca: SOCL) is up 57.3% year-to-date.
SOCL tries to reflect the performance of the Solactive Social Media Index, which includes a basket of social media companies that provide social networking, file sharing and other web-based media apps.
Next page: #5 PowerShares Wilderhill Clean Energy Portfolio
The PowerShares Wilderhill Clean Energy Portfolio (NYSEArca: PBW) is up 62.5% year-to-date.
PBW tries to reflect the performance of the WilderHill Clean Energy Index, which selects companies that focus on greener and generally renewable sources of energy and technologies that focus on cleaner energy.
Next page: #4 Market Vectors Global Alternative Energy ETF
The Market Vectors Global Alternative Energy ETF (NYSEArca: GEX) is up 66.8% year-to-date.
GEX tries to reflect the performance of the Ardour Global Index, which is a cap-weighted and follows a global universe of listed companies engaged in the alternative energy industry.
Next page: #3 First Trust NASDAQ Clean Edge Green Energy Index Fund
The First Trust NASDAQ Clean Edge Green Energy Index Fund (Nasdaq GIDS:: QCLN) is up 82.4% year-to-date.
QCLN tries to reflect the performance of the NASDAQ Clean Edge Green Energy Index, which is cap-weighted and follows clean energy companies engaged in manufacturing, development, distribution and installation of emerging clean-energy technologies, like solar, biofuels and advanced batteries.
Next page: #2 Market Vectors Solar Energy ETF
The Market Vectors Solar Energy ETF (NYSEArca: KWT) is up 93.4% year-to-date.
KWT tries to reflect the performance of the Market Vectors Global Solar Energy Index, which follows a cap-weighted methodology and provides exposure to the global solar energy industry.
Next page: #1 Guggenheim Solar ETF
The Guggenheim Solar ETF (NYSEArca: TAN) is up 130.8% year-to-date.
TAN tries to reflect the performance of the MAC Global Solar Energy Index, which is comprised of global solar energy companies. that engage in solar power sales, distribution, installation, integration, production and services.