The most profitable ETFs of the first half of 2020

The most profitable ETF for H2020 XNUMX - RANKING

Behind us is the first half of 2020, full of surprising events shaking markets and the global economy. Coronavirus pandemic, rampant unemployment and an unprecedented shutdown of most of the world's economies. Despite this, there are industries that recorded large profits in the first half of 2020. Below we will take a closer look at them. Will the second half of the year be equally beneficial for them?

Despite the drastic measures taken to limit the effects of the Covid-19 pandemic, i.e. freezing of economies, S&P 500 index fell only -3,1% against levels from the beginning of the year. In turn, the energy and financial sectors were hit the most by the events of this year.

Most loss sectors in 2020

Energy Select Sector SPDR (XLE) recorded an annual loss of 35,3%.

Financials Select Sector SPDR (XLF), in turn, dived -22,7%.

The most profitable ETFs and sectors of 2020

The most profitable ETFs turned out to be those based on the sectors of technology, luxury goods and communication. List 20 below ETFsthat boast the best results in the past six months:

Cloud services and e-commerce

Companies offering cloud services such as Zoom, SalesForce and Dropbox have been dynamically growing in the growing market for such services for years. The economic lockdown and the boom for remote work have only fueled the modes of this speeding machine. As a result, the WisdomTree Cloud Computing Fund (WCLD) recorded a 58,8% annual profit.

Global X Cloud Computing ETF (CLOU) is another cloud-oriented fund with 41.55% profit.

In addition to the cloud computing and data storage services industry, e-commerce is the industry that has experienced the acceleration of its dynamic growth.

ETFs gathering companies from this sector include The ProShares Long Online / Short Stores ETF (CLIX) currently noting 66.51% of profit, ProShares Online Retail ETF (ONLN) - 54.99% and Amplify Online Retail ETF (IBUY) currently enjoying ( beginning of July 2020) 46.97% profit.

A particularly interesting fund is CLIX, which consists of long positions (for increases) in online stores and short positions (for declines) in stationary stores. The entire fund was created with the assumption that traditional stationary stores will close due to the transfer of customers to the online sphere. This fund, as a result of economic lockdown, did exceptionally well because it benefited both from losses of closed stationary stores and increased turnover of online stores.

ONLN and IBUY are traditional funds focused on growth of the e-commerce industry (without shortening stationary stores), however, both also recorded a substantial profit of around 50%.

Technology, internet, entertainment

Technology giants also kept up the pace of development despite the crisis, O'Shares Global Internet Giants ETF (OGIG) consisting of top global technology companies (Amazon, Alphabet, Alibaba, Facebook, Microsoft, Tencent) so far recorded 53.34% profit compared to the previous year.

The companies that provide online games have also performed very well. After all, when all the entertainment outside the home is gone, we have no choice but to immerse ourselves in the world of games and series at home. Hence, we see Global X Video Games & Esports ETF (HERO) with 47,89% profit, VanEck Vectors Video Gaming and eSports ETF (ESPO) 41,95% profit, and Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD) 38,90 , XNUMX%.

ETF brokers

Broker
End	Poland	Denmark	Great Britain
The amount of ETF on offer	194 - ETF 112 - ETF CFDs	3000 - ETF 675 - ETF CFDs	397 - ETF CFDs
Min. Deposit	PLN 0 (recommended minimum PLN 2000)	2 000 USD	PLN 5
Platform	xStation	SaxoTrader Pro Saxo Trader Go	MetaTrader 5
	REVIEW	REVIEW	OFFER
	CREATE AN ACCOUNT	CREATE AN ACCOUNT	CREATE AN ACCOUNT

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. From 74% to 89% of retail investor accounts record monetary losses as a result of trading CFDs. Think about whether you understand how CFDs work and whether you can afford the high risk of losing your money.

Profitable ETFs and a new star - genomics

It's not just the internet and technology companies that make huge profits. The first place in our ranking was taken by the biological industry, specifically its branch called genomics. The ARK Genomic Revolution ETF (ARKG) fund is currently listing 71,93% of profit compared to the previous year.

The fund includes most of the major biotechnology companies, mainly from the United States and France.

Such an unusually good result of this sector may be associated with the hopes placed by investors in the invention by one of the big biotechnology companies of an effective vaccine for covid-19, which would undoubtedly translate into the gigantic profits of this company.