5 Best Sector ETFs of October With Double-Digit Returns
October has been kind to the U.S. stock market thanks to U.S.-China trade progress, better-than-expected corporate earnings and a third Fed rate cut.
U.S. President Trump said that negotiations for the so-called phase one of the trade deal with China were ahead of schedule. The Office of the U.S. Trade Representative said that Washington will consider extending certain tariff exclusions on $34 billion worth of imports from China. In fact, the combination of factors pushed the S&P 500 to new all-time highs lately.
That said, a few sector ETFs have outperformed the market. Below we have highlighted five such ETFs that have raked in substantial gains in October and could be better plays if the trend prevails.
Invesco Shipping ETF SEA Up 13.9%
The shipping ETF has emerged as the winner in October buoyed by a record-high tanker rates amid a spike in geopolitical uncertainty. Notably, the U.S. sanctions on two units of a Chinese shipping company in September, which put part of its fleet of oil carriers off-limits to traders, led to the rally. This ETF follows the Dow Jones Global Shipping Index, which measures the performance of high dividend-paying companies in the global shipping industry. It is home to 25 stocks with heavy concentration on the top firm. The fund has AUM of $48.3 million and charges 66 bps in annual fees. It trades in average daily volume of 28,000 shares.
ALPS Medical Breakthroughs ETF SBIO Up 12.4%
Biotech ETFs surged on a string of positive news flow, includin....