Here They Are: The Best-Performing, Highest-Rated ETFs of 2017

Mike Larson

Everybody loves a winner, right?

Sadly, my New England Patriots were anything but one this past Sunday against Miami. But the same can’t be said about 2017’s best-performing, top-rated ETFs! These winning “teams” have been lighting up the scoreboard all year long – and several could continue to shine in 2018 as well.

To identify the best of the best for you, I screened our entire database of more than 2,100 ETFs. First, I eliminated any funds rated SELL by our Weiss Ratings system. Next, I did a primary sort by Rating for all that remained, followed by a secondary sort by year-to-date performance.

After that, I eliminated any funds with less than $100 million in assets. Then I cut out any ETFs with less than 50,000 shares in 30-day average trading volume. You’ll find the results, sorted in descending order by Rating, below ...

The 15 Best-Performing, Highest-Rated ETFs of 2017


Data Date: 12/13/2017

I already talked about the Bitcoin phenomenon, which sent the Bitcoin Investment Trust (GBTC, Rated “B+”) through the roof this year. But it’s not the highest-rated ETF on the list. That honor belonged to the ProShares Ultra QQQ (QLD, Rated “A-”), which delivered a 70.1% return through earlier this week. The 2X leveraged fund targets technology stocks.

Next on my list was a 3X leveraged fund that also targets tech – the Direxion Daily Technology Bull 3X Shares (TECL, Rated “B+”). It was recently up 125.5% YTD. Other leveraged ETFs that focus on things like financial stocks, market volatility, and the S&P 500 found their way onto the top 15 list.

It’s important to remember that volatility and potential risk factor into our Ratings system. So, it’s not surprising to see a more-volatile, more-highly leveraged ETF garner a lower rating despite better performance. And of course, the Ratings difference between an “A-” ETF and a “B+” ETF is very small ... small enough that even something like marginal differences in fund expenses (also considered by our system) can tip the scale one way or the other.

Something else worth noting: Even some traditional ETFs made the top 15 list -- without the benefit of financial engineering! Among those are the Guggenheim China Technology ETF (CQQQ, Rated “B+”), the iShares U.S. Home Construction ETF (ITB, Rated “B+”), and the Robo Global Robotics and Automation Index ETF (ROBO, Rated “B+”).

They’re prospering because of steady Chinese economic growth, an improving housing market, and the Internet of Things/automated vehicle revolution. My colleague Mandeep highlighted ROBO as a big potential winner many months ago, while I laid out the case for housing and construction stocks back in November.

Bottom line: There were many ways to “win” in 2017 ... not all of which involved using potentially dangerous leverage or joining the Bitcoin mania. And many of the trends that drove that strong performance aren’t going away just because the calendar is about to flip to 2018.

So, consider doing some more research on these winning ETFs, and stashing one or two or three away in your own portfolio. Or if you’d prefer, let me do the work and investment research for you, and just sign up for my High Yield Investing service by clicking here.

Until next time,

Mike

About the Income & Dividend Analyst

In an era of high-risk exuberance, Mike Larson stands out as a leader in conservative investment strategies that outperform the market overall. Using the safety-oriented Weiss Ratings as a guide, he has a proven history of guiding investors to stocks and ETFs that provide asset protection, consistent dividends and excellent growth.

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