Many top-performing equity funds padded their gains the past month as the stock market remained near highs and as Intel ( INTC ), Nvidia ( NVDA ) and other chip names surged.
[ibd-display-video id=2382612 width=50 float=left autostart=true]Last month’s U.S. diversified stock winner, Innovator IBD 50 ( FFTY ), topped the list again with a 37.4% year-to-date gain through Nov. 7. The fund, launched in April 2015 in partnership with Innovator Capital Management, has attracted $193.5 million in assets. It could set up a new buy opportunity if it pulls back to and rebounds off support at the 50-day moving average .
FFTY tracks the IBD 50 Index, comprising the top 50 growth stocks selected by IBD. Companies making the index share traits of the market’s most winning stocks, including outstanding profit and sales growth, big profit margins and high return on equity.
Top holdings as of Nov. 8 included Align Technology ( ALGN ), Arista Networks ( ANET ), as well as top chip names such as Lam Research (LRCX), Applied Materials (AMAT) and Nvidia. With Innovator Capital Management’s IBD 50 ETF, you can trade the IBD 50 in just one transaction.
There was little change among the top diversified stock ETFs: IShares Edge MSCI USA Momentum Factor (MTUM), PowerShares QQQ Trust (QQQ) and Vanguard Mega Cap Growth (MGK) occupied the No. 2, 3 and 4 spots, respectively, the same as last month.
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Moving over to sector funds, the top five held steady with ARK Innovation (ARKK) and Ark Web x.0 (ARKW) leading. Semiconductor ETFs moved up the list, while biotechs slipped.
Of the chip funds, iShares PHLX Semiconductor (SOXX) saw the biggest monthly gain, 10.6%, which boosted its YTD gain to 46.5%. The $1.2 billion fund tracks the PHLX SOX Semiconductor Sector Index, which comprises U.S. companies that design, manufacture and distribute computer chips. Its top holdings as of Nov. 8 included Intel, Qualcomm (QCOM), Nvidia, Texas Instruments (TXN) and Broadcom (AVGO).
Chips made headlines Nov. 6 when Broadcom offered to buy Qualcomm for $130 billion, which would be the biggest tech company acquisition. Qualcomm said it is reviewing the bid. Broadcom was up 50% through Nov. 8; Qualcomm was down 1%.
IBD’S TAKE: Nvidia has scored big gains this year, but how do its fundamentals and technicals rank in its industry group? Find out now at IBD Stock Checkup . Graphics chip designer Nvidia pulled back Thursday ahead of its earnings report due out after the close. Shares have nearly doubled in price this year.
SOXX is extended from a 151.75 cup-with-handle buy point cleared in September. But it’s prudent to keep an eye on top ETFS, since they can set up new entries at pullbacks to the 50-day line.
Guggenheim China Technology (CQQQ) dethroned last month’s top foreign fund, KraneShares CSI China Internet (KWEB), with a 76.3% YTD gain vs. KWEB’s 69.2% return. China and India ETFs made the top half of the list.
Overall, BlackRock’s global chief investment strategist, Richard Turnill, is bullish on Asia. “The region’s economic backdrop is encouraging,” he wrote in a weekly note. “China’s economic growth and corporate earnings outlook appear solid in the near term. We like India, China and selected Southeast Asia markets.”
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.