ETFs
4 ETF Zones Oscillating Around 52-Week Highs
Wall Street is hovering around an all-time high and seeing remarkable growth across various sectors, with several growth ETFs at or near their 52-week highs. This trend indicates widespread recovery and investor confidence in specific market segments.
In this article, we’ll explore four key areas of ETFs currently shining: semiconductors, shipping, Nordic, and Taiwan. These ETFs not only reflect strong market performance, but also present attractive opportunities for investors looking to capitalize on current market trends.
Let’s dig a little deeper.
Semiconductor
Strive for semiconductors in the United States ETFs SHOC – Up 3.1% on May 28
VanEck Semiconductor ETF SMH – Up 2.3%
Invesco PHLX Semiconductor ETF SOXQ – Up 2.1%
On Tuesday, chipmaker NVIDIA’s NVDA stock topped $1,100 for the first time, hitting another milestone. Elon Musk’s artificial intelligence startup xAI announced on Sunday that it had successfully raised $6 billion in a Series B funding round. Reports suggest Elon Musk intends to deploy chips NVIDIA for a new “supercomputer” intended to power xAI’s chatbot called Grok. This news sent NVIDIA stocks and NVIDIA ETFs like SHOC, SMH, and SOXQ soaring.
Shipping
US Global Sea to Sky Cargo ETF MER – Up 2.9%
SonicShares Global Shipping ETF BOAT – Up 2.4%
Maritime stocks have recently reached new highs, but their long-term performance is even more remarkable. Over the past five years, larger-cap maritime stocks have outperformed the S&P 500 by a factor of two to ten.
As a result, insider wealth from ship ownership increased by hundreds of millions of dollars. Geopolitical tensions in the Red Sea, a crucial area for international trade, have triggered a significant shift in the shipping sector, making an optimistic case for global shipping stocks.
Nordic region
Norway iShares MSCI ETF ENOR – Up 1.7%
Global X FTSE Nordic Region ETF NEWS – Up 1.4%
Energy stocks represent around 30% of both funds and are therefore largely dependent on the development of oil prices. On May 28, 2024, crude oil prices increased by more than $1 per barrel. The rise was driven by expectations that OPEC and its allies (OPEC+) will maintain their current crude supply restrictions, as well as a weaker U.S. dollar, which has made oil more attractive to investors holding other currencies. US Brent Oil Fund LP BNO has added 16.7% so far this year (as of May 28, 2024).
Taiwan
Franklin FTSE Taiwan ETF FLTW – Up 1.4%
iShares MSCI Taiwan ETF EWT – Up 1.2%
The story continues
In the two ETFs mentioned above, information technology represents over 60% exposure. The top companies in these two ETFs are Taiwan Semiconductor (a major beneficiary of the latest AI boom), Hon Hai Precision and Mediatek. Naturally, the wave of investment in AI has continued to bolster optimism about the growth rates of Taiwanese chip companies.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Reports
US Brent Oil ETF (BNO): ETF Research Reports
iShares MSCI Taiwan ETF (EWT): ETF Research Reports
Global X MSCI Norway ETF (NORW): ETF Research Reports
US Global Sea to Sky Cargo ETF (SEA): ETF Research Reports
iShares MSCI Norway ETF (ENOR): ETF Research Reports
Franklin FTSE Taiwan ETF (FLTW): ETF Research Reports
Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports
SonicShares Global Shipping ETF (BOAT): ETF Research Reports
Strive US Semiconductor ETF (SHOC): ETF Research Reports