ETFs
These 3 ETFs have experienced double-digit growth every year for the past 5 years
According to a study by CNBC Pro, only three ETFs worldwide have produced double-digit annual returns over the past five years. Two U.S.-listed ETFs – the SPDR S&P Metals & Mining ETF and the VanEck Steel ETF – and the Japan-listed NEXT NOTES Japan Equity High Beta Select 30 ETF have each increased by more than 10% each year since 2019 CNBC Pro examined 8,300 stock ETFs worldwide using FactSet data to identify funds. SPDR S&P Metals & Mining ETF The SPDR S&P Metals & Mining ETF (ticker: XME) provides investors with broad exposure to the metals and mining segment. It is invested in 32 stocks of companies that mine aluminum, coal, copper, gold, silver, precious metals and minerals. Nearly half of the $2.1 billion fund is also invested in companies that process steel. The ETF has also outperformed the S&P 500 Index in two of the last five years and generated a cumulative total return of 154% over the period, surpassing the S&P 500’s 128% cumulative return. Analyst prices for the ETF’s shares indicate upside potential of more than 17% over the next 12 months, according to FactSet. XME .SPX 5Y line VanEck Steel ETF Unlike the more diversified SPDR fund, the VanEck Steel ETF (ticker: SLX) is more concentrated, with 27 stocks focused solely on companies in the steel industry. The VanEck fund has outperformed the S&P 500 in four of the last five years. It also outperformed with a cumulative total return of 148% over the period. However, the ETF is currently negative year-to-date. Over the next 12 months, the weighted average of analyst price targets for the ETF’s shares indicates an upgrade potential of more than 18%. NEXT NOTES Japan Equity High Beta Select 30 The NEXT NOTES Japan Equity High Beta Select 30 ETF (ticker: 2068.T-JP) is a smart beta ETF. These types of funds seek to bring together elements of passive index investing and active management using strict rules to identify which stocks to include in a fund. This ETF tracks the Nomura Japan Equity High Beta Select 30 Index. The index includes the most liquid and largest cap stocks in Japan with high beta in terms of stock performance, currency impact and momentum. High beta stocks react with more volatility than the rest of the market.