Best Performing ETFs 3Q 2019

October 07, 2019

Though there have been plenty of worries to go around, most investors should be pleased with their returns so far in 2019. With three quarters in the books, the SPDR S&P 500 ETF Trust (SPY) is hanging on to a 17.8% return, on track for its best showing since 2017.

Other ETFs—many not even tied to the U.S. stock market—have done even better, with gains ranging from 34% to 115% for the top 15 ETFs of 2019. 


Rupee ETN Doubles

Blowing away the returns for everything else is the Market Vectors-Indian Rupee/USD ETN (INR), a $1 million product with a monster 115.3% gain. INR’s rally has been extremely unusual. As recently as Sept. 5, it was trading with only a 2.8% gain. Over the course of the next week, INR more than doubled.

The ETP’s surge has nothing to do with movements in the rupee. The Indian currency hasn’t moved much this year, and that’s reflected in INR’s net asset value, which is only up 3.5% year to date.

But that hasn’t stopped investors from bidding up the exchange-traded note, which now sports a stunning 105% premium. That’s possible because INR’s plumbing has been broken since June 2015, when issuer Morgan Stanley suspended creations for the product.

It managed to hold close to its NAV for most of the time since then, but not after the recent buying binge. Without the ability to create new ETNs, authorized participants can’t arbitrage away the premium as they typically do with exchange-traded products.

Thus, INR’s return is more a reflection of a broken product than anything. Incidentally, the ETN will mature next March. At that time, the notes will be redeemed at their net asset value, which is likely to be substantially lower than current values. Buyer beware.


Best-Performing ETFs Of 2019 (excluding leveraged/inverse)

Ticker Fund YTD Return (%)
INR  Market Vectors-Indian Rupee/USD ETN 115.32
JJN iPath Series B Bloomberg Nickel Subindex Total Return ETN 66.85
TAN  Invesco Solar ETF 56.28
ITB  iShares U.S. Home Construction ETF 42.57
SRVR  Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF 38.68
CHIS  Global X MSCI China Consumer Staples ETF 37.56
XSD  SPDR S&P Semiconductor ETF 37.43
INDS  Pacer Benchmark Industrial Real Estate SCTR ETF 37.21
GOAU  U.S. Global GO Gold and Precious Metal Miners ETF 37.16
RING  iShares MSCI Global Gold Miners ETF 36.63
SMH  VanEck Vectors Semiconductor ETF 35.40
ACES  ALPS Clean Energy ETF 35.38
SOXX  iShares PHLX Semiconductor ETF 35.37
ROKT  SPDR S&P Kensho Final Frontiers ETF 34.24
PKB  Invesco Dynamic Building & Construction ETF 34.15

Data measures total returns for the year-to-date period through Oct. 2.

Outperforming Metal

Taking the No. 2 spot on the best-performers list is another small product, the $9 million iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN), with a 66.8% return.

Fear not: Despite being an ETN, JJN has tracked its index and nickel prices closely this year. The industrial metal was last trading around a five-year high, strongly outperforming other base metals like copper, aluminum and tin.

Analysts say that a nickel ore export ban by No. 1 producer Indonesia is driving this year’s rally. The country aims to use the nickel ore for value-added domestic consumption.

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