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Ride Wall Street's Rebound Rally With These ETFs

Investors gained optimism from some of Biden's encouraging announcements relating to the Omicron variant.

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This story originally appeared on Zacks

Wall Street finally saw the green zone after a three-day streak of decline. The Dow Jones Industrial Average jumped 1.6% on Dec 21. The S&P 500 and the Nasdaq Composite indices climbed 1.8% and 2.4%, respectively. The small-cap benchmark Russell 2000 index also rose 2.9%, witnessing its best trading day since Jul 20. Nine of the 11 S&P 500 sectors were in the green zone.

- Zacks

Investors who seek to capitalize on the strong trends should consider ETFs like SPDR S&P 500 ETF Trust SPY, iShares Core S&P 500 ETF IVV, SPDR Dow Jones Industrial Average ETF Trust DIA, iShares MSCI USA Momentum Factor ETF MTUM, Invesco QQQ QQQ and Fidelity Nasdaq Composite Index ETF ONEQ.

Reopening plays in sectors like airlines, cruise lines and entertainment saw increased investor attention. Airlines stocks like Delta Air Lines rose 5.9%, United Airlines was up about 6.9% and Carnival increased nearly 8.7%. Las Vegas Sands also climbed 8.4%.

The rebounding 10-year Treasury yield also highlighted improving market sentiment that came at around 1.5% after falling to 1.36% in the previous week. Oil price recouped some decline as it rose above $70 a barrel, with major energy players seeing gains.

Investors gained optimism from some of President Joe Biden’s encouraging announcements. Biden has mentioned that booster shots are providing strong protection against COVID-19 (per a CNBC article). He has also mentioned that the United States will not slip into the intense pandemic conditions faced during March 2020.

Updating about his preparations for the healthcare infrastructure and arrangements, Biden mentioned that the White House is buying 500 million at-home COVID-19 tests that will be available at free of cost for Americans from 2022 (as stated in a CNBC article). Biden has also mentioned that 1000 medical personnel will be allocated from the military to assist hospitals if the situation gets severe in January and February.

ETFs to Ride the Wave

Investors who seek to capitalize on the strong trends should consider the following ETFs:

SPDR S&P 500 ETF Trust SPY

SPDR S&P 500 ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the S&P 500 Index.

SPDR S&P 500 ETF Trust has a total expense ratio of 0.09% with AUM of $431.59 billion.

iShares Core S&P 500 ETF IVV

iShares Core S&P 500 ETF seeks to track the investment results of an index composed of large-capitalization U.S. equities.

iShares Core S&P 500 ETF has AUM of $324.33 billion and total expense ratio is 0.03%.

SPDR Dow Jones Industrial Average ETF Trust DIA

SPDR Dow Jones Industrial Average ETF Trust seeks to provide investment results that before expenses generally correspond to the price and the yield performance of the Dow Jones Industrial Average.

SPDR Dow Jones Industrial Average ETF Trust charges an expense ratio of 0.16% with AUM of $29.16 billion (read: Small-Cap and Consumer Staples: 2 ETFs to Watch for Outsized Volume).

iShares MSCI USA Momentum Factor ETF MTUM

iShares MSCI USA Momentum Factor ETF provides exposure to large and mid-cap stocks that exhibit relatively higher price momentum by tracking the MSCI USA Momentum SR Variant Index.

iShares MSCI USA Momentum Factor ETF charges 15 basis points (bps) in fees per year along with AUM of $14.41 billion (read: Ride the Thanksgiving Rally With These ETFs).

Invesco QQQ QQQ

Invesco QQQ provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq-100 Index.

Invesco QQQ has AUM of $208.55 billion and charges investors 20 bps in annual fees.

Fidelity Nasdaq Composite Index ETF ONEQ

Fidelity Nasdaq Composite Index ETF seeks to provide investment returns that closely correspond to the price and yield performance of the Nasdaq Composite Index.

Fidelity Nasdaq Composite Index ETF has AUM of $4.63 billion and the expense ratio comes in at 0.21% (read: Guide to the Nasdaq ETF Investing).



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Invesco QQQ (QQQ): ETF Research Reports

 

SPDR S&P 500 ETF (SPY): ETF Research Reports

 

SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports

 

iShares MSCI USA Momentum Factor ETF (MTUM): ETF Research Reports

 

iShares Core S&P 500 ETF (IVV): ETF Research Reports

 

Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports

 

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Zacks Investment Research