Three ALPS ETFs each gained more than 10% in May as investors shifted money into technology and away from traditional energy.
Key Takeaways:
- ACES gained 19.4% last month and is up 72.5% over the past year, while the energy sector fell 5.31% for the week ended May 29.
- OGIG returned 11.2% last month as global internet stocks surged, with Snowflake up 48.2% for the final week of May.
- DTEC spreads exposure evenly across cloud, cybersecurity, and robotics themes and gained 10.8% last month.
Growth stocks climbed 3.03% for the week ended May 29, while value stocks dropped 0.72%. Technology was the market’s top sector, up 4.5%, as the Morningstar U.S. Market Index rose 1.52%. The S&P 500 gained 1.43% and the Nasdaq rose 2.39%, according to Morningstar data.
For ALPS investors, that rotation delivered. ACES, OGIG, and DTEC were the firm’s three top-performing ETFs last month. Each gained more than 10%, with the best performer up nearly 20%, according to ETF Database.
Leading that group was the ALPS Clean Energy ETF (ACES). ACES gained 19.4% last month, 29.4% year to date, and 72.5% over the past year, according to ETF Database. It focuses on U.S. and Canadian companies in renewables and clean technology, rather than oil-and-gas producers. The fund holds about $145 million in assets.
ACES moved in a different direction from the broader energy sector. Energy stocks fell 5.31% for the week ended May 29, and West Texas Intermediate crude prices dropped 9.35% to $87.93 per barrel, according to Morningstar.
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Tech Stocks Fuel May Returns
Also posting double-digit gains was the ALPS O’Shares Global Internet Giants ETF (OGIG). OGIG returned 11.2% last month and targets large global internet and e-commerce companies with above-average growth potential, according to ETF Database. The fund holds about $111 million in assets.
Large internet and software names had a strong final week of May. Snowflake Inc. (SNOW), a top OGIG holding at 2.4%, surged 48.2% for the week ended May 29, according to Morningstar.
Rounding out the top three was the ALPS Disruptive Technologies ETF (DTEC). DTEC gained 10.8% last month, according to ETF Database. The fund uses an equal-weight approach, spreading exposure evenly across themes like cloud computing, cybersecurity, and robotics. Year to date, the fund is up 3.7%.
Technology names tied to those themes also moved sharply for the week ended May 29. Dell Technologies Inc. (DELL) climbed 42.6%, Micron Technology Inc. (MU) gained 29.4%, and Robinhood Markets, Inc. (HOOD) rose 28.1%, according to Morningstar.
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