An exchange traded fund (ETF) is a fund that holds tens, hundreds, or even thousands of stocks or bonds. ETFs are traded on major stock exchanges such as the NYSE and Nasdaq. Investing in ETFs combines mutual fund diversity with reduced investment minimums and real-time pricing.
Here are this week’s best performing ETFs, which have provided investors with the most consistent returns.
5 Best Performing ETFs This Week
Growth exchange-traded funds (ETFs) have been regaining traction in recent weeks in 2021. Several ETFs are performing above expectations.
Let’s review the best performing ETFs this week.
1. Direxion Daily Technology Bear 3X Shares – Up 812.24% Over 1 Month
Direxion Daily Technology Bear 3X Shares (NYSEARCA: TECS). TECS gives you 3x leveraged inverse exposure to a market-cap-weighted index of large-cap technology businesses in the United States. The fund has a -3x S&P Technology Select Sector Index exposure.
This ETF last closed at a price of $30.90 and is trading at an average volume of 466,326.
2. Direxion Daily MSCI Real Estate Bear 3x Shares – Up 811.31% Over 1 Month
Direxion Daily MSCI Real Estate Bear 3x Shares (NYSEARCA: DRV). DRV provides 3x leveraged inverse exposure to a US real estate investment trusts index that encompasses big to small-cap stocks (REITs). It is exposed to the whole US Real Estate Sector, as defined by GICS.
This ETF last closed at a price of $40.45 and is trading at an average volume of 35,241.
3. Direxion Daily Semiconductor Bull 3X Shares – Up 54.21% Over 1 Month
Direxion Daily Semiconductor Bull 3X Shares (NYSEARCA: SOXL). SOXL provides 3 times daily exposure to a modified market-cap-weighted index of 30 publicly traded semiconductor businesses in the United States. The fund’s index uses market-cap weighting, with the top five stocks’ weights limited at 8% and the other shares’ weights at 4%.
This ETF last closed at a price of $68.61 and is trading at an average volume of 12.68M.
4. Direxion Daily Homebuilders & Supplies Bull 3X Shares – Up 43.00% Over 1 Month
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NYSEARCA: NAIL). NAIL offers 3x daily leveraged bullish exposure to a US homebuilding sector index. The index is based on market capitalization and comprises companies involved in home building, furnishings & fittings, and home renovation shops.
This ETF last closed at a price of $107.58 and is trading at an average volume of 394,076.
5. ProShares Ultra Semiconductors – Up 41.76% Over 1 Month
ProShares Ultra Semiconductors (NYSEARCA: USD). USD provides 2x exposure to a market-cap-weighted index that follows the performance of significant US semiconductor firms. Investors gain concentrated exposure to the world’s largest semiconductor manufacturing and distribution firms.
This ETF last closed at a price of $55.54 and is trading at an average volume of 173,164.
How To Invest in ETFs
Investing in ETFs can be relatively simple. With just a few short steps, you will be on your way to investing in some of the most popular exchange traded funds.
1. Select a Brokerage
The first step you must take is to determine which brokerage you want to use in order to start investing. Here are some popular options to choose from to start investing in ETFs:
- E*Trade — Free Stock Trading – Award winning platform and mobile app!
- TradeStation — Also Free stock trading – intuitive stock trading tools. Cash bonus for new accounts (conditions apply).
- M1 Finance: This brokerage provides a mix of self-directed and automated trading and investing solutions. M1 Finance offers a low minimum deposit requirement and automatic investing for ordinary accounts at no added charge. More than 80 professional portfolios are available to you. Also, individual stock or ETF orders, as well as fractional shares, are accessible through M1 Finance. Sign up with M1 Finance here
- Robinhood: Stock traders interested in ETFs may purchase and sell any exchange-traded funds without paying a commission at Robinhood. With Robinhood Financial, you may invest in over 5,000 stocks, including most exchange-traded funds (ETFs) traded on the stock exchange.
- Webull: With Webull, you may purchase all Index ETFs that track the S&P 500, Dow Jones, and NASDAQ. Webull’s site offers a screener that allows you to narrow down your search for ETFs based on important factors such as industry and P/E ratio.
2. Open Your Trading Account
To buy and sell assets such as ETFs, you must first open a trading account. This can all be done online, and the procedure is really quick and easy. There are a number of regulated brokerage services, such as Robinhood and Vanguard, that will allow you to open a trading account and begin purchasing stocks and ETFS.
3. Deposit Funds
Once you’ve linked an accepted payment method to your account, you’ll need to deposit funds to purchase ETFs. You can begin investing after your account has been properly activated.
4. Select an ETF to Invest in
Now that you have your brokerage account, you must pick which ETFs to purchase. Numerous brokers include sophisticated screening tools that allow you to narrow down the universe of accessible ETFs based on a range of factors, such as asset type, region, and ETF performance.
5. Purchase Your Selected ETF
The procedure of purchasing ETFs is quite similar to that of purchasing stocks. You will purchase the ETF using its ticker symbol, which is used to identify specific stock and ETFs.
You will have to navigate to your brokerage website’s trading page where you can buy or sell ETFs. Then you may execute your order once you find the ETFs that you feel would fit perfectly with your portfolio.
6. Monitor Your Performance
ETFs trade similarly to stocks listed on the market, with the current value fluctuating during the day as buyers and sellers make transactions. You may utilize your brokerage account’s analysis tools to examine how an ETF is performing.
Should You Invest in the Best Performing ETFs?
ETFs may be purchased in a variety of ways, with the method you pick largely determined by your investment goals. If you wish to invest in a wide range of ETFs, but are unsure of where to start, you should consult with a financial advisor for excellent investment advice.
Frequently Asked Questions
For beginning investors, exchange-traded funds might be a great way to get started in the stock market. They are less expensive and usually entail less risk than individual equities.
An ETF will receive dividend payments from its underlying equities and distribute them directly to owners. The ETF considers this to be a dividend payment, as owners get payment depending on the total amount of dividends paid by the fund’s assets.
The cost ratio of an ETF specifies how much of your investment will be withdrawn as fees each year. The expense ratio of a fund is equivalent to the fund’s operating expenditures weighted by the fund’s average assets.
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