Image Source: Pixabay
Wall Street enjoyed a strong rally this month, mainly driven by the optimism surrounding corporate growth under President-elect Donald Trump. Additionally, the Fed’s second rate cut buoyed optimism. Notably, all the major indices touched milestones in the middle of the month. The S&P 500 Index topped the 6,000 level while the Dow Jones crossed 44,000. The tech-heavy Nasdaq Composite Index hit 19,000 post-election for the first time.We have highlighted five top-performing ETFs from different sectors that were the leaders in November. These are First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT – Free Report) , ARK Space Exploration & Innovation ETF (ARKX – Free Report) , Invesco KBW Regional Banking ETF (KBWR – Free Report) , Roundhill Video Games ETF (NERD – Free Report) and InfraCap MLP ETF (AMZA – Free Report) .The market is betting that the second Trump administration will provide a boost to stocks, given his more market-friendly policies. Trump’s policies on restricting illegal immigration, enacting new tariffs, lowering taxes and reducing regulations may boost the economy but also accelerate inflation, limiting the Federal Reserve’s ability to cut rates. The anticipation of greater tariff barriers and a step to move manufacturing back home is expected to drive stocks higher.Federal Reserve Chair Jerome Powell, in the latest meeting, slashed interest rates for the second time this year. The key interest rate was cut by 25 bps, bringing down the benchmark rate to 4.5%-4.75%, following the 50-bps cut in September 2024. Lower interest rates generally lead to reduced borrowing costs, helping businesses expand their operations more easily, thus driving profitability. This, in turn, stimulates economic growth and provides a boost to the stock market.However, a resurgence in tensions between Russia and Ukraine, as well as uncertainty about future rate cuts, dented the risk appetite during the months.Let’s dig into the details of the abovementioned ETFs:First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) – Up 41.5%First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economy-related innovation. SkyBridge identifies securities primarily via “bottom-up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 35 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $93.8 million in its asset base and trades in an average daily volume of 75,000 shares.ARK Space Exploration & Innovation ETF (ARKX) – Up 19.6%ARK Space Exploration & Innovation ETF is an actively managed ETF that seeks to invest in domestic and foreign equity securities of companies that are engaged in the theme of space exploration and innovation. In total, the fund holds 33 securities in its basket. ARK Space Exploration & Innovation ETF has gathered $282.2 million in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 84,000 shares per day on average.Invesco KBW Regional Banking ETF (KBWR) – Up 18%Invesco KBW Regional Banking ETF offers exposure to publicly traded U.S. regional banking and thrift companies by tracking the KBW Nasdaq Regional Banking Index. It holds 51 stocks in its basket.Invesco KBW Regional Banking ETF is a relatively less popular and less liquid option in the space, with AUM of $63.5 million and an average daily volume of 6,000 shares. It charges 35 bps in fees per year from investors and has a Zacks ETF Rank #4 (Sell) with a High risk outlook.Roundhill Video Games ETF (NERD) – Up 15.1%Roundhill Video Games ETF offers exposure to 33 companies engaged in video game publishing and/or video game development. NERD follows the Nasdaq CTA Global Video Games Software Index, charging investors 50 bps as annual fees. Roundhill Video Games ETF accumulated $20.1 million in its asset base while trading in an average daily volume of 3,000 shares.InfraCap MLP ETF (AMZA) – Up 14.8%InfraCap MLP ETF seeks to provide exposure to midstream master limited partnerships (MLPs) with an emphasis on high current income. InfraCap MLP ETF has amassed $426.7 million in its asset base and has an expense ratio of 2.18%. It trades in an average daily volume of 39,000 shares.More By This Author:Homebuilder ETFs Gain Traction
5 ETFs That Deserve Special Thanks In 2024
Gold ETFs Regain Luster: Will The Rally Continue?
