The ETFs with the greatest momentum going into 2021
- Here are the ETFs and ETNs with the strongest price performance going into 2021, excluding leveraged and inverse ETFs. We've listed the ETFs with the strongest three month performance, and also provided their one month performance.
- We've grouped the ETFs by theme. There are four themes behind the ETFs with the greatest momentum going into 2021: (i) clean energy and electric cars, (ii) cannabis stocks, (iii) oil and gas, and (iv) areas which will benefit from a rebound in the economy, which we've included in "Others".
- Clean energy and electric cars: VanEck Vectors Rare Earth/Strategic Metals ETF (NYSEARCA:REMX), one month +18%, three months +73%. Invesco WilderHill Clean Energy ETF (NYSEARCA:PBW), one month +14%, three months +72%. Invesco Global Clean Energy ETF (NYSEARCA:PBD), one month +16%, three months +69%. Invesco Solar ETF (NYSEARCA:TAN), one month +21%, three months +58%. First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN), one month +10%, three months +58%. Global X Lithium & Battery Tech ETF (NYSEARCA:LIT), one month +19%, three months +56%. iShares Global Clean Energy ETF (NASDAQ:ICLN), one month +20%, three months +53%. Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT), one month +15%, three months +53%. VanEck Vectors Low Carbon Energy ETF (NYSEARCA:SMOG), one month +12%, three months +50%. SPDR S&P Kensho Clean Power ETF (NYSEARCA:CNRG) one month +14%, three months +49%. SPDR S&P Kensho Smart Mobility ETF (NYSEARCA:HAIL), one month +9%, three months +47%.
- Cannabis stocks: AdvisorShares Pure US Cannabis ETF (NYSEARCA:MSOS), one month +8%, three months +67%. AdvisorShares Pure Cannabis ETF (NYSEARCA:YOLO), one month +2%, three months +60%. Amplify Seymour Cannabis ETF (NYSEARCA:CNBS), one month -3%, three months +59%. The Cannabis ETF (NYSEARCA:THCX), one month -6%, three months +54%.
- Oil and gas: SPDR S&P Oil & Gas Equipment & Services ETF (NYSEARCA:XES) one month +15%, three months +61%. VanEck Vectors Oil Services ETF (NYSEARCA:OIH) one month +14%, three months +60%. ProShares Ultra Oil & Gas (NYSEARCA:DIG), one month +10%, three months +58%. iShares U.S. Oil Equipment & Services ETF (NYSEARCA:IEZ), one month +13%, three months +57%. Invesco Dynamic Oil & Gas Services ETF (NYSEARCA:PXJ) one month +12%, three months +49%. First Trust Natural Gas ETF (NYSEARCA:FCG), one month +11%, three months +49%. Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE), one month +12%, three months +47%.
- Others: ProShares Ultra MSCI Brazil Capped ETF (NYSEARCA:UBR), one month +26%, three months +77%. North Shore Global Uranium Mining ETF (NYSEARCA:URNM), one month +50%, three months +53%. ARK Genomic Revolution ETF (BATS:ARKG), one month +19, three months +52%. Global X Copper Miners ETF (NYSEARCA:COPX), one month +14%, three months +49%. Invesco KBW Regional Banking ETF (NASDAQ:KBWR), one month +11%, three months +48%. VanEck Vectors Steel ETF (NYSEARCA:SLX), one month +15%, three months +48%. SPDR S&P Regional Banking ETF (NYSEARCA:KRE), one month +9%, three months +46%. Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK), one month +18%, three months +46%.
- Why does this list matter? Academic studies have shown that momentum has strong predictive value in stock investing: the stocks which did best in the last period are often the stocks statistically most likely to do well in the next period. (This is why Seeking Alpha Premium includes a Momentum grade for every stock.) For investors wanting to add momentum to their portfolio in a way which has consistently beaten the market, this is the simplest way to do it.