5 ETFs With Big Gains From Nasdaq’s Outperformance Last Week


This story originally appeared on Zacks

The tech-heavy Nasdaq Composite Index, beaten down by worries of higher interest rates, was the outperformer last week, jumping 2.4%. The S&P 500 and Dow Jones also rose, gaining 1.5% and 1.1%, respectively.
As such, some ETFs have gained in double digits. These include Blockchain & Bitcoin Strategy ETF BITS, Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF RIGZ, VanEck Vectors Digital Transformation ETF DAPP, AdvisorShares Pure US Cannabis ETF MSOS, and Global X Blockchain ETF BKCH. These funds seem excellent choices to play the rebound.
The Nasdaq outperformance came despite the worst day on Feb 3 since September 2020. The rounds of strong earnings from some of the biggest tech names have led to the robust rebound. Amazon AMZN led the benchmark higher with a huge earnings beat on strong growth in its cloud computing and growing advertising business. The e-commerce giant posted the biggest one-day gain since 2015. Snap Inc. SNAP skyrocketed 58.8% and Pinterest PINS rose 11.2% following solid earnings (read: ETFs to Buy on Amazon’s Big Q4 Earnings Beat).
Additionally, the tech sector outlook remains upbeat given the global digital shift that has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, artificial intelligence, machine learning, digital communication and 5G technology should continue to drive the sector higher.
In a tight policy era, technology seems one of the safest sectors as most companies are sitting on a huge cash pile. The cash reserves will ensure that these companies are not plagued by any financial trouble, even in a rising interest rate environment (read: Rate Hikes to Weigh on Nasdaq: Go Short With These ETFs).
Bitwise Crypto Industry Innovators ETF (BITQ) – Up 11.7%
Bitwise Crypto Industry Innovators ETF offers exposure to the companies leading the new crypto economy. It tracks the Bitwise Crypto Innovators 30 Index, which measures the performance of the companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele.
Holding 30 stocks in its basket, Bitwise Crypto Industry Innovators ETF is concentrated on the top three firms. It charges 85 bps in annual fees from investors and trades in an average daily volume of 205,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $99.6 million in its asset base.
Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ) – Up 11.5%
Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF is an actively managed ETF focused on the cryptocurrency mining industry, holding 120 stocks in its basket.
Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF has attracted $11.3 million in its asset base. It charges 90 bps in annual fees and trades in an average daily volume of 17,000 shares.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 11.3%
VanEck Vectors Digital Transformation ETF aims to offer exposure to the companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 25 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 112,000. DAPP has accumulated $46.8 million in its asset base (read: Why These Tech ETFs Are Bargain Buys).
AdvisorShares Pure US Cannabis ETF (MSOS) – Up 10.6%
AdvisorShares Pure US Cannabis ETF is the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators. MSOS holds 30 securities in its basket with a double-digit concentration on the top two firms. AdvisorShares Pure US Cannabis ETF is highly skewed toward MSOS in terms of sector, making up for 71.8% of the portfolio.   
MSOS has amassed $1 billion in its asset base while trading in an average daily volume of $1.6 million shares. AdvisorShares Pure US Cannabis ETF charges 74 bps in annual fees.
Global X Blockchain ETF (BKCH) – Up 10.5%
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket with double-digit allocation to the top two firms.
Global X Blockchain ETF has gathered $90.2 million in its asset base and trades in an average daily volume of 193,000 shares. It charges 50 bps in annual fees.

– Zacks

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
 
Snap Inc. (SNAP): Free Stock Analysis Report
 
Global X Blockchain ETF (BKCH): ETF Research Reports
 
Pinterest, Inc. (PINS): Free Stock Analysis Report
 
AdvisorShares Pure US Cannabis ETF (MSOS): ETF Research Reports
 
VanEck Digital Transformation ETF (DAPP): ETF Research Reports
 
Viridi Cleaner Energy CryptoMining & Semiconductor ETF (RIGZ): ETF Research Reports
 
Global X Blockchain & Bitcoin Strategy ETF (BITS): ETF Research Reports
 
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