2 Unlikely Year-To-Date ETF Performance Leaders

The race for the best performing sector or asset class of 2015 is still in its nascent stages.  However, two unlikely candidates have emerged in leadership roles from beaten down areas of the globe through the first six weeks of the year.

The following ETFs represent areas of strength amid the backdrop of heighted stock market volatility.

Gold Mining Stocks

TheiShares MSCI Global Gold Miners ETF (RING) has shown a strong bounce in price this year after having fallen more than 17 percent in 2014.  Despite flying under the radar with just $63 million in total assets, this ETF has now jumped nearly 15 percent higher. 

Those returns in RING were as high as 25 percent in January, but a dip in gold bullion prices have led to a pullback in this niche ETF.   

RING tracks 33 global stocks engaged in all aspects of the gold mining industry.  Well-known companies such as Goldcorp Inc (GG) and Barrick Gold Corp (ABX) make up the top two holdings in this market-cap weighted ETF.

Another fund that has benefitted from the bounce in this sector is the Market Vectors Gold Miners ETF (GDX).  GDX is the largest ETF in this space with $7.4 billion in total assets along with a slightly broader base of 38 world-wide companies.  So far this year, GDX has gained over 13 percent in total return.

Russian Stocks

After being one of the most heavily sold areas of the globe last year, Russian stocks are showing some resilience in recent weeks.  The Market Vectors Russia ETF (RSX) tracks a basket of 49 companies domiciled in this emerging market country. 

So far this year, RSX has gained over 15 percent and recently hit new 2-month highs.  The economic engine of Russia is heavily dependent on oil prices, which are seeking to stabilize in recent weeks.

The iShares MSCI Russia Capped ETF (ERUS) has also jumped over 12 percent since the start of the year.  Both funds have regained their 50-day moving averages, which may be seen as a sign of technical strength in the near-term.

Ultimately it’s too early to tell whether these moves are just the result of quick bounces in an oversold asset class or whether a new trend change has truly arrived.  Either way, it’s worth keeping these ETFs on your radar screen to see if they can retain their leadership roles.