5 Best Performing Stocks Of The Best ETF Of May

The technology sector, no doubt, has been leading the broad market rally and is a the clear winner this month as well. That said, ARK Web x.0 ETF ARKW has topped the list of the best performing ETFs of May, with impressive returns of about 15.6% (read: 5 ETFs & Stocks to Ride the Tech Mania).

The impressive rally was mainly driven by the emergence and extensive adoption of new technology such as cloud computing, big data, Internet of Things, wearables, drones, virtual reality devices and artificial intelligence. Additionally, the surge in bitcoin prices is a big boon for this disruptive companies focused ETF. This is especially true as ARKW is the first ETF to add bitcoin to its roster and the move is paying off.

Bitcoin, commonly known as a cryptocurrency, is a digital or virtual currency that uses peer-to-peer technology to facilitate instant payments. Notably, the digital currency shot up to an all-time high of above $2,700, doubling its value since the start of May (read: Will We Finally See a Bitcoin ETF?).

Let’s take a closer look at the fundamentals of ARKW.

ARKW in Focus

This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. These include companies that rely on or benefit from the increased use of shared technology, infrastructure and services in cloud computing, e-commerce, big data, social media, Internet of Things, new payment methods, media ecosystems, health care, point of sale, telecom and cryptocurrencies.

The fund holds 39 stocks in its basket with none holding more than 7.6% share. From a sector look, Internet & mobile applications makes up for 29% of the portfolio while software & programming and Internet & direct marketing round off the next two spots with 13% exposure each. The ETF has amassed $40.1 million in its asset base and trades in a paltry average daily volume of around 10,000 shares. The expense ratio comes in at 0.75%.

Though most of the stocks in the fund’s portfolio delivered strong returns, a few were the real stars having gained more than 20%. Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund’s basket (see: all the Technology ETFs here):

Best Performing Stocks of ARKW

Bitcoin Investment Trust (OTC:GBTC) : Shares of GBTC have soared about 210% this month. GBTC is an open-ended grantor trust based in the U.S., sponsored by Grayscale Investments. It is quoted on the over-the-counter market and derives its value solely from the price of bitcoin. The Trust's objective is to track the market price of bitcoin. GBTC occupies the top spot in the fund’s basket with 7.5% of the total assets.

NVIDIA (NASDAQ:NVDA) : This stock takes the seventh position in the fund’s basket with 4.02% allocation. It has also delivered incredible returns of 39% in May. The stock has seem solid earnings estimate revision of 30 cents for this fiscal year over the past one month with an expected earnings growth rate of 19.36%. NVIDIA has a Zacks Rank #3 (Hold) with a VGM Style Score of C and a solid Zacks Industry Rank in the top 7% (read: 5 ETFs to Tap the Hot NVIDIA).

Square Inc. (NYSE:SQ) : This stock takes the seventeenth spot in the fund’s basket with 2.5% of assets. It gained 24.7% in May and has seen positive earnings estimate revision from a loss of 25 cents to a loss of 16 cents over the past one month for this year. As a result, its earnings are expected to grow 53.88% versus the industry average of 9.91%. Square currently has a Zacks Rank #3 with a VGM Style Score of B and solid Zacks Industry Rank in the top 39%.

Hortonworks Inc. (NASDAQ:HDP) : The stock has surged nearly 24% in May but carries a Zacks Rank #4 (Sell) with a VGM Style Score of D. Though the stock has seen negative earnings estimate revision of eight cents for this year over the past one month, its earnings are expected to grow 22.35% versus the industry average of 9.91%. Additionally, Hortonworks belongs to the solid industry having a Zacks Rank in the top 39%. The stock is the fifth firm and accounts for 2.7% share in ARKW.

MercadoLibre Inc. (NASDAQ:MELI) : The stock has gained about 22.3% this month. It has seen solid earnings estimate revision of 30 cents over the past one month for this year with an expected earnings growth rate of 34.05%. This is much higher than the industry average of 20.82%. MercadoLibre currently has a Zacks Rank #1 (Strong Buy) with a VGM Style Score of D and a solid Zacks Industry Rank in the top 20%. The stock occupies the sixteenth position in the fund’s portfolio, making up for 2.5% share.


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MercadoLibre, Inc. (MELI): Free Stock Analysis Report

Square, Inc. (SQ): Free Stock Analysis Report

Hortonworks, Inc. (HDP): Free Stock Analysis Report

ARK- WEB XO ETF (ARKW): ETF Research Reports

NVIDIA Corporation (NVDA): Free Stock Analysis Report

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