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Top ETF of December & Its Best Stocks

Published 12/23/2020, 11:10 PM
Updated 07/09/2023, 06:31 AM

ARK Genomic Revolution Multi-Sector ETF ARKG topped the list of the best-performing ETFs of December with impressive returns of about 41%.

The rally came amid the pandemic, which has led to a surge in the acceptance of the next-generation of healthcare solutions known as genomics. As researchers are focusing on implementing preventive and precautionary measures through newer concepts, the use of genomics amid the COVID-19 pandemic has yielded a few successful measures. As such, genomics has garnered enough attraction from across the world.

Genomics is a concept that involves the human gene and sequencing for treatment and study of several diseases or potential diseases. The genomics market is expected to witness a CAGR of about 13% during the period 2020-2024 to $17.23 billion. Most of the growth will be driven by the need for creating/upgrading genome databases (read: ETFs in Focus on Bayer (OTC:BAYRY)'s Bet on Gene Therapy).

Additionally, rising government funding, increase in the number of genomics projects, falling sequencing costs, and the entry of new players and start-ups in the genomics field are driving the growth of the market. The market is being further helped by the wave of mergers & acquisitions, and progress in the development of coronavirus vaccine or treatment.

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

ARKG in Focus

ARKG is an actively managed ETF that focuses on companies likely to benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments along with improvements and advancements in genomics into their business. With AUM of $6.2 billion, the fund holds 51 stocks in its basket with none accounting for more than 7.4% of assets. It charges 75 bps in annual fees and trades in average daily volume of 1.8 million shares (read: 8 ETFs That Have Gained More Than 100% in 2020).

Although most of the stocks in the fund’s portfolio delivered strong returns, a few gained at least 80% last month. Below we have highlighted the five best-performing stocks in the ETF with their respective positions in the basket:

Best Performing Stocks of ARKG

Editas Medicine (NASDAQ:EDIT) Inc. EDIT: This development-stage genome editing biotech makes medicines to treat serious diseases using its proprietary genome editing platform based on the unique Clustered Regularly Interspaced Short Palindromic Repeats technology. It has gained about 167% so far this month. The stock takes the seventeenth position in the fund’s basket with 1.9% share. It has a Zacks Rank #3 (Hold) and VGM Score of F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beam Therapeutics Inc. BEAM: This biotechnology company is engaged in developing precision genetic medicines through base editing. It makes up for 1.1% share in the fund’s basket. Beam Therapeutics has also delivered incredible returns of about 81% this month. The stock has a Zacks Rank #3 and VGM Score of F.

Pacific Biosciences (NASDAQ:PACB) of California Inc. PACB: This company develops, manufactures and markets sequencing systems, which help in studying synthesis, composition, structure and regulation of deoxyribonucleic acid, popularly known as DNA. The stock has surged about 80% so far this month and has a Zacks Rank #3. It occupies the top position with 7.3% of total assets. The stock has a VGM Score of C (read: Why You Should Invest in Genomics ETFs).

Syros Pharmaceuticals (NASDAQ:SYRS) Inc. SYRS: This biopharmaceutical company is focused on treatments for cancer and immune-mediated diseases as well as building a pipeline of gene control medicines. The stock makes up for 0.6% of the assets. It has gained 80% so far this month. Syros Pharmaceuticals has a Zacks Rank #3 and VGM Score of F.

AquaBounty Technologies (NASDAQ:AQB) Inc. AQB: This biotechnology company is focused on enhancing productivity in aquaculture and operates primarily in Maynard, Massachusetts and Fortune, Prince Edward Island. It accounts for 1.1% allocation and has gained 76% so far this month. The stock has a Zacks Rank #3 and VGM Score of F.

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Beam Therapeutics Inc. (BEAM): Free Stock Analysis Report

Pacific Biosciences of California, Inc. (PACB): Free Stock Analysis Report

Editas Medicine, Inc. (EDIT): Free Stock Analysis Report

Syros Pharmaceuticals, Inc. (SYRS): Free Stock Analysis Report

ARK Genomic Revolution ETF (ARKG): ETF Research Reports

AquaBounty Technologies, Inc. (AQB): Free Stock Analysis Report

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