The top three exchange-traded funds (ETFs) with returns of above 100% in 2021 are discussed below; we’ll analyze them based on their current price and market indicators.
In short, ETFs have been around for almost 30 years, providing investors with various benefits like diversification and ease of trading. During the pandemic, their popularity skyrocketed, indicating a rise in investor interest in the asset.
The top three
1. Direxion Daily Retail Bull 3X Shares (RETL)
Year-to-Date ROI: 135%
Direxion Daily Retail Bull 3x Shares ETF (NYSEARCA: RETL) is a leveraged instrument designed to amplify the performance of the S&P Retail Select Industry Index for investors who have risk aversion to handle leveraged products. RETL aims to deliver three times the daily returns of the S&P Retail Select Industry Index.
This benchmark index includes a wide range of sub-segments within the retail business, such as internet & direct marketing retail, clothing retail, automobile retail, food retail, and pharmacy retail, to mention a few.
Currently, RETL is up $118.02 (135.36 percent) year to date at $205.21; YTD; to put this in perspective, consider that the equivalent leveraged version of the S&P 500 only managed to deliver aggregate returns of about 65 percent during the same period.
However, the ETF finished down $2.15 (-1.04 percent) on Wednesday, bringing its current price to $205.21. Furthermore, it is trading above its 200-day simple moving average while remaining slightly below its 20 and 50-day SMA lines. By the same token, it appears that the long-term trend will continue, but the short-term trend is neutral.
Likewise, comparing the performance of all stocks over the past year, RETL has outperformed 97 percent of the market. It is also worth mentioning that RETL’s gains over the previous year are nicely spaced out across this time.
Moreover, the fund is presently trading at the midpoint of its 52-week range, according to Finviz. As a result, RETL is slightly trailing behind the S&P 500 Index, which is now trading around new highs.
Lastly, it is worth noting the volume has increased significantly in the previous several days. This might be considered a negative indicator in conjunction with the present decline; thus, investors may want to wait for some consolidation before entering.
2. MicroSectors™ U.S. Big Banks Index 3X Leveraged ETNs (BNKU)
Year-to-Date ROI: 114%
The MicroSectors U.S. Big Banks Index ETNs (NYSEARCA: BNKU) are tied to the performance of the Solactive MicroSectors U.S. Big Banks Index. For example, the benchmark U.S. Treasury yield BNKU has been a consistent performer recently and scored well in every aspect examined in the last year.
At the time of publication, BNKU is trading at the top of its 52-week range, trading at $53.11, up $28.38 (114.77%) year to date. In addition, the ETF is trading above its 20, 50, and 200-day simple moving averages, which investors frequently use as uptrend indicators; as a result, the short-term outlook and the long-term trend look optimistic based on these markers.
There is a favorable trend in both the short-term and long-term outlooks which is a positive indication. On top of that, the stock outperforms 98 percent of all other equities in the market when comparing their performance over the past year.
Lastly, BNKU’s profits over the last year have been evenly distributed across this period. Since BNKU has traded in a broad range of $45.76 – $62.00 during the past month, it appears that there may be some resistance above since it is now trading in this range.
3. Breakwave Dry Bulk Shipping ETF (BDRY)
Year-to-Date ROI: 249%
In order to give exposure to daily changes in dry bulk freight futures prices, before expenditures and liabilities of the fund, the investment Breakwave Dry Bulk Shipping ETF (NYSEARCA: BDRY) tracks a portfolio of futures contracts on defined indexes that measure rates for carrying dry bulk freight over three months.
Investments in Freight Futures, which now make up the Benchmark Portfolio, are expected to help the fund reach its investment goal. For instance, Capesize, Panamax, and Supramax Freight Futures make up the Benchmark Portfolio.
Recently, BDRY has proven that it can consistently deliver results. BDRY outperformed other stocks by 97 percent during the last year. Furthermore, BDRY is presently trading at $29.60, up $21.10 with a year-to-date return of 249.11 percent. Aside from that, the ETF is trading around its 52-week high, so the performance is in line with the market, as the S&P 500 Index is also nearing new highs at this time.
Since the ETF is now trading above its simple moving averages of 20, 50, and 200 days, the short-term outlook and the long-term trend appear positive.
Add to that since July; daily trading volume has been very modest, suggesting that the fund may not see extreme volatility swings, with a support zone around $26.25 and a resistance zone around $29.96 based on horizontal trend lines and key moving averages in different time frames.
Finally, BDRY has also shown a solid and consistent pattern of rising prices. BDRY has been trading in a broad range of $24.26 – $30.13 for the past month. The fund is now trading at the top of its trading range, so it may be wise to wait for a consolidation or pullback before making an entry.