We examine major developing trends in financial markets and the impact on ETF performance. Our analysis includes leading ETF performers along with laggards and specific actionable ticker symbols to invest in.
Social Media (SOCL)
Twitter (TWTR) is the newest face in the emerging social media sector. The San Francisco-based company pulled off its IPO and the shares stormed ahead by doubling. Although the shares were downgraded by Morgan Stanley in January, the social media space is quickly evolving and packed with opportunity. After bottoming near $12 on Nov. 12, 2012, the Global X Social Media ETF (SOCL) has climbed around 72%. SOCL’s top ten holdings include Twitter along with more established players like Google, LinkedIn and Facebook. The $125 million fund charges annual expenses of 0.65%.
Gold Miners (GDX)
Gold miners have posted three consecutive yearly losses, pushing down shares by almost 80%. In 2013, the SPDR Gold Shares (GLD) sank 28.33% and gold suffered its worst loss since 1981. Are better days ahead? According to Mebane Faber Research, the three-year average nominal return since 1920 when investing in industry sectors that fall 80% is an incredible 136%. That’s the sort of statistic value investors love. While that could bode future gains for GDX and leveraged ETFs like the Direxion Daily Gold Miners Bull -3x Shares (NUGT), the sector’s fate will ultimately be determined by how quickly physical precious metals bounce back.