A list of US dollar-denominated funds that have posted the highest returns over the past five years.
In recent years, technology stocks have dominated market gains. In fact, the S&P 500 Equal Weight Information Technology Index has returned 12.5% annually in the five years since July 2019, vastly outperforming other sectors such as consumer staples, energy, and the financial sector. However, the technology sector faces an uncertain future.
“We don’t believe the upward trend in equity indices is sustainable, especially given the possibility of another rate hike by the US Federal Reserve,” said James Demmert, chief investment officer at Main Street Research.
However, opportunities exist beyond the tech sector. Morningstar data shows there are funds that have outperformed investments in the technology sector and are growing over the past five years. Below is a list of US dollar-denominated funds that have posted the highest returns over the past five years, from July 2018 to the end of June this year, according to Morningstar data. Here are the funds and some of their main underlying:
1. Luxembourg Selection Active Solar: The fund focuses on global solar energy companies. Major investments include SolarEdge, Sunrun, JinkoSolar, Canadian Solar, and Enphase Energy.
2. Fidelity Select Construction & Housing Portfolio: This fund invests in companies that design and construct residential and commercial structures or supply building products. Major investments include Home Depot, Johnson Controls International, Floor & Décor, and Trane Technologies.
3. Guinness Atkinson Alternative Energy Fund: This fund selects companies in the alternative energy sector, with at least half of the assets dedicated to renewable energy or energy efficiency. Major investments include Schneider Electric, NextEra Energy, and Eaton.
4. Shelton Sustainable Equity Fund: This fund invests in shares of the sustainable economy. Major investments include Darling Ingredients, which transforms food waste into sustainable products, among other services; the renewable energy company Ormat; the Bunge agribusiness company; and medical and industrial products maker Danaher.
5. Global X Lithium and Battery Tech ETF: This ETF includes manufacturers of lithium and lithium batteries, which are essential for electric vehicles. Major investments include Albemarle, Samsung SDI, and CATL.
6. First Trust RBA American Industrial Renaissance ETF: This ETF targets US small and medium-sized companies and regional banks. Major investments include Hubbell, MasTec, SPX Technologies, and Sterling Infrastructure.
7. Global X U.S. Infrastructure Development ETF: This ETF includes infrastructure companies. Major investments include Eaton, Rockwell Automation, United Rentals, Trane Technologies, and Deere & Co.
8. Invesco Russell 1000® Dynamic Multifactor ETF: This ETF tracks the Russell 1000 Invesco Dynamic Multifactor index. Financials, industrials, and consumer goods sectors make up the majority of the ETF. Major investments include United Airlines, Marathon Oil, Tyson Foods, Best Buy, and Synchrony Financial.
9. Heptagon Fund ICAV - Driehaus US Micro Cap Equity Fund: The fund invests in US companies with a small capitalization but good growth potential. Major investments include Xenon Pharmaceuticals, e.l.f. Beauty, TransMedics Group and FTAI Aviation.
10. Vanguard Baillie Gifford Global Positive Impact Stock Fund: The fund invests in companies that can bring about positive change in social inclusion, the environment, healthcare, and responding to the needs of the world’s poorest people. Major investments include Moderna, Deere & Co, Alnylam Pharmaceuticals, Coursera, and Peloton.
11. Invesco Water Resources ETF: This ETF tracks the Nasdaq OMX U.S. index. Water, which includes companies that produce products and services for water management. Major investments include Ecolab, American Water Works, and Xylem.
While the technology sector has experienced tremendous growth in recent years, these funds have proven to have significant potential for investors looking to diversify their portfolio and seek opportunities outside the tech sector.
Original article published on Money.it Italy 2023-08-04 07:00:00. Original title: Rialzo dei tassi? Ecco gli undici fondi con le migliori perfomance a cinque anni
