- The best performing exchange-traded fund so far this year tracks cannabis stocks.
- The top 15 ETFs have all gained at least 26% in 2019.
- ETFs tracking Chinese equities made the most frequent appearance, taking six of the top 15 slots.
Many exchange-traded funds have rocketed higher in 2019 alongside a broader recovery in markets, driven by the Fed’s “pause” of its interest-rate hikes as well as the adoption of a more dovish outlook.
In addition, fears of a recession in the US have eased, with market commentators indicating the worst of the slowdown may even have passed in the US and China.
ETFs tracking the surging Chinese stock market took the lion’s share of the top 15 spots, with six making an appearance.
Meanwhile, an ETF tracing the red-hot cannabis industry led the pack, posting a return of 46%. Top holdings of the ETF include Aurora Cannabis, GW Pharmaceuticals, and Cronos Group, which have soared amid moves towards the legalization of marijuana production and distribution in the US.
Check out the 15 top-performing ETFs of Q1, excluding levered ETFs and those with assets under $100 million from our selection:
ETFMG Alternative Harvest ETF
YTD Return: 46%
AUM: $1.2 billion
Top 3 holdings:
- Aurora Cannabis
- GW Pharmaceuticals
- Cronos Group
Fund description:
The index tracks the performance of companies across the globe, including in the US, that are engaged exclusively in legal activities of cannabis for medical or non-medical purposes.
ARK Genomic Revolution ETF
YTD Return: 37%
AUM: $394 million
Top 3 holdings:
- Invitae
- Illumina
- Intellia Therapeutics
Fund description:
Companies within ARKG are focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments and advancements in genomics into their business.
Xtrackers Harvest CSI 300 China A-Shares ETF
YTD Return: 31%
AUM: $2.2 billion
Top 3 holdings:
- Ping An Insurance Group
- Kweichow Moutai
- China Merchants Bank
Fund description:
The ETF seeks to track the A-shares of domestic Chinese equities that trade on the Shanghai or Shenzhen stock exchanges, tracking over 300 companies.
KraneShares Bosera MSCI China A Share ETF
YTD Return: 30%
AUM: $561 million
Top 3 holdings:
- Kweichow Moutai
- Ping An Insurance Group
- China Merchants Bank
Fund description:
The ETF seeks to track the progressive partial inclusion of A shares in the MSCI Emerging Markets Index over time.
CNYA - iShares MSCI China A ETF
YTD Return: 30%
AUM: $126 million
Top 3 holdings:
- Kweichow Moutai
- Ping An Insurance Group
- China Merchants Bank
Fund description:
The ETF seeks to track the A-shares of domestic Chinese equities that trade on the Shanghai or Shenzhen stock exchanges. The ETF tracks over 200 holdings.
Xtrackers MSCI China A Inclusion Equity ETF
YTD Return: 30%
AUM: $141 million
Top 3 holdings:
- Kweichow Moutai
- Ping An Insurance Group
- China Merchants Bank
Fund description:
The ETF seeks to track the A-shares of domestic Chinese equities that trade on the Shanghai or Shenzhen stock exchanges. The ETF tracks over 200 holdings.
Invesco DWA Technology Momentum ETF
YTD Return: 29%
AUM: $193 million
Top 3 holdings:
- MongoDB
- RingCentral
- Twilio
Fund description:
The ETF is designed to identify companies that are showing momentum among the DWA Technology Technical Leaders Index. The ETF is composed of at least 30 securities from the Nasdaq.
ALPS Medical Breakthroughs ETF
YTD Return: 29%
AUM: $199 million
Top 3 holdings:
- Galapagos NV
- Array BioPharma
- Agios Pharmaceuticals
Fund description:
The ETF invests in the stocks of companies operating in the biotechnology and pharmaceutical sectors, with a market capitalization of no less than $200 million and no more than $5 billion.
Global X MSCI China Consumer Discretionary ETF
YTD Return: 29%
AUM: $154 million
Top 3 holdings:
- Alibaba
- JD.com
- Ctrip.com
Fund description:
The ETF seeks to invest in the consumer discretionary sector among the A-shares of domestic Chinese equities that trade on the Shanghai or Shenzen stock exchange.
SPDR S&P Oil & Gas Equipment & Services ETF
YTD Return: 28%
AUM: $217 million
Top 3 holdings:
- U.S. Silica Holdings
- RPC
- Dril-Quip
Fund description:
The ETF seeks to provide exposure to the oil and gas equipment and services segment of the S&P total market index, which comprises the oil & gas drilling sub-industry and the oil & gas equipment & services sub-industry.
Invesco Golden Dragon China ETF
YTD Return: 28%
AUM: $206 million
Top 3 holdings:
- Ctrip.com
- JD.com
- Netease
Fund description:
The ETF invests in US exchange-listed companies that are headquartered or incorporated in the People's Republic of China.
WisdomTree China ex-State-Owned Enterprises Fund
YTD Return: 28%
AUM: $206 million
Top 3 holdings:
- Tencent Holdings
- Alibaba
- Baidu
Fund description:
The index seeks to track the investment results of Chinese companies that are not state-owned enterprises, which is defined as government ownership of greater than 20%.
SPDR S&P Software & Services ETF
YTD Return: 27%
AUM: $212 million
Top 3 holdings:
- Invitae
- Illumina
- Intellia Therapeutics
Fund description:
The ETF seeks to provide exposure to the software and services segment of the S&P total market index, which comprises the following sub-industries: Application software, data processing & outsourced services, home entertainment software, IT consulting & other services, and systems software.
SPDR S&P Biotech ETF
YTD Return: 26%
AUM: $554 million
Top 3 holdings:
- Paycom Software Inc
- Square
- Universal Display
Fund description:
The ETF is composed of securities with strong growth characteristics selected from the Russell Midcap Index.
Invesco Russell MidCap Pure Growth ETF
YTD Return: 26%
AUM: $4.5 billion
Top 3 holdings:
- Invitae
- Illumina
- Intellia Therapeutics
Fund description:
The ETF seeks to provide exposure to the biotechnology segment of the S&P total market index.
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