Top Performing ETFs Ranked

Investing in Exchange Traded Funds (ETFs) has become increasingly popular due to their low cost, tax efficiency, and trading flexibility. ETFs are essentially a basket of securities that track an index, sector, commodity, or various other assets. They are traded like individual stocks on an exchange. Here, we will delve into the top-performing ETFs based on their year-to-date (YTD) returns.

1. Invesco Solar ETF (TAN)

Year-to-date return: 234.22%

Leading the pack is the Invesco Solar ETF (TAN). This fund tracks the MAC Global Solar Energy Index, which is comprised of companies involved in the solar energy industry. The fund has seen a massive surge in performance due to increased demand for renewable energy and favorable government policies.

2. ARK Genomic Revolution ETF (ARKG)

Year-to-date return: 180.47%

Next on the list is the ARK Genomic Revolution ETF (ARKG). This fund invests in companies that are expected to benefit from the extension and enhancement of the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business. The fund has been a big winner due to the increased focus on healthcare and biotechnology amid the COVID-19 pandemic.

3. Global X Lithium & Battery Tech ETF (LIT)

Year-to-date return: 127.04%

The Global X Lithium & Battery Tech ETF (LIT) is another top performer. This fund tracks the Solactive Global Lithium Index, which is comprised of companies involved in the lithium industry. The fund has seen a significant boost in performance due to the growing demand for electric vehicles, which rely on lithium-ion batteries.

4. ARK Next Generation Internet ETF (ARKW)

Year-to-date return: 150.25%

The ARK Next Generation Internet ETF (ARKW) is a fund that focuses on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund has seen a significant surge in performance due to the increased reliance on technology amid the COVID-19 pandemic.

5. iShares Global Clean Energy ETF (ICLN)

Year-to-date return: 141.76%

Finally, the iShares Global Clean Energy ETF (ICLN) rounds out our list. This fund tracks the S&P Global Clean Energy Index, which is comprised of companies involved in clean energy related businesses. The fund has seen a significant boost in performance due to the increased demand for clean energy and favorable government policies.

Conclusion

ETFs offer a simple and effective way to diversify your portfolio. However, like any investment, it’s important to do your research and understand the risks involved. The performance of these funds is subject to change and past performance is not indicative of future results. Always consider your investment goals and risk tolerance before investing in ETFs.