Best-performing US ETFs in 2021
Looking for big earners? Check out which US ETFs have delivered the highest year-to-date returns.
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Eager to diversify your portfolio to include US Exchange Traded Funds (ETFs)? It's a popular move made by many Aussie investors and for good reason.
The S&P 500 has rallied this year, climbing 785.81 points YTD and enjoying impressive growth of 21.23%. Look further back and it's clear just how incredible returns have been.
Since the market crash in March 2020, the S&P 500 has grown by 109.53%, jumping 2,345.30 points. Investors who were brave enough to buy at the pandemic's outset could have more than doubled their money in less than 2 years. No wonder US stocks are so appealing.
There's also been a surge in low-fee trading platforms in recent years, giving Australian investors easy and affordable access to overseas markets. For example, CMC Markets (which was crowned best overall Share Trading Platform in the 2021 Finder investment awards) offers $0 brokerage fees across US, UK, Canadian and Japanese stocks.
The trend towards affordable and accessible platforms means Australians of all trading levels can enter overseas markets in search of potentially lucrative trading and investing opportunities.
So, which US ETFs have shown the most potential? While past performance isn't indicative of future results, nobody can deny that it's fascinating to know which funds have outshone the majority.
Here are the top 10 performing US ETFs in 2021 – as of October.
Symbol | ETF name | YTD returns | Annual dividend yield |
---|---|---|---|
GUSH | Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares | 141.21% | 0.07% |
NRGU | MicroSectors U.S. Big Oil Index 3X Leveraged ETN | 135.47% | 0.00% |
BNKU | MicroSectors U.S. Big Banks Index 3X Leveraged ETNs | 116.80% | 0.00% |
RETL | Direxion Daily Retail Bull 3X Shares | 106.68% | 0.01% |
FCG | First Trust Natural Gas ETF | 92.79% | 1.74% |
FAS | Direxion Daily Financial Bull 3X Shares | 90.93% | 0.41% |
DIG | ProShares Ultra Oil & Gas | 89.74% | 2.43% |
HIBL | Direxion Daily S&P 500 High Beta Bull 3X Shares | 88.70% | 0.07% |
PXE | Invesco Dynamic Energy Exploration & Production ETF | 88.39% | 2.51% |
DPST | Direxion Daily Regional Banks Bull 3X Shares | 87.99% | 0.60% |
Interestingly, 4 of the top 5 ETFs are leveraged, which means they're typically better suited to short-term trades as opposed to longer-term investments. Traders interested in leveraged ETFs should also be wary of the amplified risk associated with leveraged investments.
While lucrative returns are possible over relatively short time frames, the nature of leveraged ETFs mean they also expose traders to significantly increased risk should a prediction go awry.
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