Best ETFs Today: Why UltraPro (TQQQ), iShares Ethereum (ETHA) and VanEck Semiconductor (SMH) Are Soaring

The ProShares UltraPro QQQ (NASDAQ:TQQQ | TQQQ Price Prediction), iShares Ethereum Trust ETF (NASDAQ:ETHA), and VanEck Semiconductor ETF (NASDAQ:SMH) are all soaring today. And all of them are up due to the broader market optimism. All the ETFs are targeting underlying equities and assets that are highly sensitive to broader market movements and benefit from risk-on sentiment.

For example, the ProShares UltraPro QQQ targets the Nasdaq-100 Index and amplifies its movements by three times. iShares Ethereum Trust ETF mirrors the Ethereum (CRYPTO:ETH) cryptocurrency, and the VanEck Semiconductor ETF tracks the performance of the MVIS US Listed Semiconductor 25 Index. All three ETFs gain in an outsized manner during market rallies, though the Ethereum one can still underperform during a crypto crash.

Why the ETFs Have Rallied Today

The broader market is rallying today, and investors are more aggressive than normal after President Donald Trump said that he has no intention of firing Federal Reserve Chair Jerome Powell. The stock market is now reversing earlier declines that were mostly due to fears of Powell being fired.

On top of that, he also hinted that the trade war with China will start de-escalating soon. If that happens, this could mean that the worst of the trade war is behind us. The White House still said that any drawdown of tariffs on China would require negotiations and would not happen unilaterally. Given that there are no ongoing tariff negotiations with China, that’ll likely take some time. However, the market is bullish since it means that the administration does not intend to keep tariffs this high forever.

The ProShares UltraPro QQQ (TQQQ)

It has heavy exposure from Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and NVIDIA (NASDAQ:NVDA). All three are part of the Nasdaq-100. AAPL and MSFT are up by 2-3% each, and NVDA is up 5%. Since TQQQ amplifies the Nasdaq-100’s gains by 3x, it is up more.

iShares Ethereum Trust ETF (ETHA)

This ETF tracks Ethereum. The cryptocurrency is up 2.6% today, and this is mostly due to Bitcoin (CRYPTO:BTC) climbing 11.8% over the past week and breaking above $90,000. This has pushed up all other cryptocurrencies, since the crypto market usually moves in tandem. ETHA has gained more than ETH as it is catching up on earlier gains. In the past five days, ETH is up by around 13%, and ETHA is up by 15%.

VanEck Semiconductor ETF (SMH)

NVDA, Taiwan Semiconductor (NYSE:TSM), and Broadcom (NASDAQ:AVGO) alone constitute nearly 39% of its holdings. NVDA is up 5%, TSM is up 4.2%, and AVGO is up 5.4%. Chip stocks are up across the board due to signs of the trade war cooling down. These chip gains have translated into gains for this ETF.