Can Top ETFs of Q2 Continue to Rally in Q3?

Major indexes rebounded strongly in the second quarter from their March lows, thanks mainly to unprecedented stimulus from the Federal Reserve and Congress, and positive coronavirus vaccine news.

The S&P 500 was up 20%, the Dow Jones gained 18%, and the tech-heavy Nasdaq surged 31%, as investors continued to pile into big tech. While cyclicals also rebounded earlier in the quarter, rising coronavirus cases, and reclosing of some parts of the economy unnerved investors.

E-commerce, cloud-computing and internet were among the best performing areas of the quarter as they all benefit from the current crisis. The Amplify Online Retail ETF (IBUY) holds companies deriving 70% or more of their revenues from online or virtual sales. Overstock (OSTK) and Peloton (PTON) are among the top holdings.

The WisdomTree Cloud Computing ETF (WCLD) provides pure-play exposure to emerging cloud companies. Fastly (FSLY) and Zoom Video (ZM) are its top holdings.

The ARK Genomic Revolution ETF (ARKG) is an actively managed ETF that holds companies involved in the genomics industry. Two other ARK ETFs– ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) –were also in the top 10, as they benefitted from Tesla’s (TSLA) exponential rise.

Please watch the short video above to learn more about these ETFs.

(In full disclosure, Neena owns shares of IBUY and WCLD in the ETF Investor Portfolio.)

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