The S&P/ASX 200 Index (ASX: XJO) has been in fine form in 2021 and has just hit a new record high.
This means the benchmark index is now up 9.4% year to date. While this is impressive, its pales in comparison to the gains being made by some ASX 200 shares.
Here's why these two ASX 200 shares are smashing the market in 2021:
Codan Limited (ASX: CDA)
The Codan share price has been the best performer on the ASX 200 in 2021. Its shares are up a massive 66% since the start of the year. Investors have been buying the electronic products company's shares thanks to its strong performance in FY 2021, promising acquisitions, and asset divestments.
In respect to the former, Codan has been on form thanks to strong demand for metal detectors following the release of new products and the sky high gold price. As for its acquisitions, Codan has recently boosted and diversified its earnings through the acquisition of US-based Domo Tactical Communications for $114 million and Zetron for US$45 million.
Westpac Banking Corp (ASX: WBC)
The Westpac share price has been in stellar form this year, rising 35.7% since the start of the year. It has also declared a fully franked 58 cents per share dividend and traded ex-dividend on 13 May. This strong gain has been driven by improving investor sentiment in the banking sector thanks to the increasingly positive outlook.
And it isn't hard to see why investors are getting excited about the banks again. In February Westpac released its half year results and revealed a $3.44 billion cash profit. That was up 189% on the prior corresponding period and up 213% over the six months ended 30 September 2020.
The good news is that it may not be too late to invest. Morgans believes the Westpac share price can run a further 12% higher to $29.50.
