Reopening Bets Pay Off Big for Stock Pickers

Discussion in 'Wall St. News' started by ajacobson, May 31, 2021.

  1. ajacobson

    ajacobson

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    https://www.wsj.com/articles/reopen...or-stock-pickers-11622466001?mod=hp_lead_pos4


    Some of this year’s best-performing ETFs include smaller market-cap companies. Goodyear Tire & Rubber’s stock is up 82% in 2021.
    PHOTO: SEAN GARDNER/GETTY IMAGES
    By
    May 31, 2021 9:00 am ET
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    Investors are amassing hefty gains by loading up on economically sensitive stocks that have flourished during this year’s explosion of business activity.

    More than two dozen actively managed exchange-traded funds have surged at least 20% so far this year, outpacing the S&P 500’s 12% climb. Goldman Sachs analysts say 56% of stock-picking large-cap mutual funds are beating their benchmarks, the highest percentage in more than a decade.

    Some of the best performers include companies with smaller market capitalizations and so-called value stocks—those deemed inexpensive relative to measures of a company’s net worth. The energy-focused for example, has risen 48% this year thanks to a recovery in oil prices. It includes top holdings such as Energy Transfer LP, up 62% since December.

    The which focuses on companies returning the most cash to shareholders, has also jumped 48% this year. Primary holdings include Rent-A-Center Inc. and Toll Brothers Inc., which have both gained more than 50%. The Avantis U.S. Small Cap Value ETF, which has soared 36%, boosted by Goodyear Tire & Rubber Co. ’s 82% gain and a climb of 72% from aluminum maker Alcoa Corp.