Three Top ETFs to Watch
Exchange-traded funds have always offered more of a bang for your buck.
If I wanted to buy 10 shares of Alphabet (GOOG), Facebook (FB), Amazon.com (AMZN) and Netflix (NFLX) right now, it’d cost me $22,210.
However, with an ETF like the Advisor Shares New Tech and Media ETF (FNG), I can gain exposure to those same stocks for $19.88 a share, or $1,988. That’s a savings of more than $20,000 for similar exposure.
That’s the beauty of ETFs.
It’s why so many traders have taken full advantage of these three top performing ETFs of 2017 to date.
First Trust US IPOX Index Fund (FPX)
What’s nice about the FPX is that it profits from the hype and excitement of new IPOs without a lot of the risk. Between January 2017 and August 2017, the index ran from a low of $55 to a high of $61.45 on the heels of IPO excitement.
The FPX tracks hot IPOs in their first 1,000 days of trading. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you’re also being exposed to multiple hot IPOs at the same time at lesser cost.
Plus, as you can see, it never once took a hit on the SNAP IPO either. In fact, even with some of the most obnoxious IPO failures, the ETF managed to run from a 2009 low of around $11 to $61. It’s a safer alternative than risking your hard-earned money to another potential flop, as SNAP turned out to be.
SPDR S&P Aerospace & Defense ETF (XAR)
Since January 2017, the XAR has exploded from a low of $64 to nearly $76 on two key catalysts. One has been the threat of war with Syria and even North Korea. The second has been a push by President Donald Trump to bump defense spending.
One of the many plans put on the table was the introduction of a budget that would strengthen the U.S. military.
According to The White House, the 2018 budget could include:
“$668 billion of discretionary budget authority for national defense, including $603 billion for the base budget and $65 billion for Overseas Contingency Operations (OCO). These funds will provide the military forces needed to conduct ongoing operations, deter potential adversaries, modernize our nuclear deterrent, and protect the security of the United States.”
The latest budget plan also noted the framework for strengthening the Navy, the Marine Corps, the Army, and the Air Force. For instance, with the Marine Corps, Trump wants them to be able to meet the challenges of the 21st century.
“It increases funding to train Marines in intelligence, cyber, and information operations activities. The Budget also enhances training ranges, improves infrastructure to support new platforms and weapons, and addresses deteriorated facilities to improve safety and security. The request includes $2.8 billion for the procurement of 20 F-35Bs (the short takeoff and vertical landing version of the Joint Strike Fighter), $721 million for 22 AH-1Z attack helicopters, $707 million for 6 V-22 Ospreys, $234 million for 527 Joint Light Tactical Vehicles, and $162 million for 26 Amphibious Combat Vehicles.”
Considering that billions could be spent to strengthen the U.S. military, defense stocks could lead the broader markets even higher.
Pure Funds ISE Cyber Security ETF (HACK)
The cyber security story has been red hot since the latest global attacks. Stocks like FireEye (FEYE), Palo Alto (PANW) and Barracuda Networks (CUDA) all exploded on the story. But the most inexpensive way to trade it was with the HACK ETF.
With global cyber attacks like WannaCry and a growing number of companies and consumers deathly afraid of the next attack, investors are seeing incredible opportunity to create incredible wealth. So much so, investors poured $3.5 billion just into cyber security deals in 2016 alone.
Those numbers, according to Business Insider, are only likely to rise.
Plus, companies were just beginning to spend upwards of $81.7 billion globally each year on security hardware, software and services. According to market intelligence firm, IDC sales could grow at a yearly rate of 9% through 2020.