ETFs
Top performing ETFs by sector over the last 30 days
Wall Street was strong in June, with the S&P 500, Dow Jones and Nasdaq up 3.5%, 1.1% and 6%, respectively. The Russell 2000, however, was down 1.1%. The S&P 500 broke the 5,500 mark for the first time last week, after hitting 5,400 earlier this month and 5,300 last month, a sign of investor confidence. The technology sector remained the best performer in June.
NVIDIA And Amazon reached market capitalizations of $3 trillion and $2 trillion, respectively, in June. NVIDIA (which briefly became the world’s most valuable company during the month), Apple (which also reached height for a while) and Microsoft remained in the race to become the world’s most valuable company.
At the last FOMC meeting early last month, U.S. policymakers forecast just one rate cut this year and indicated four cuts in 2025. At the same time, inflation data released throughout the month showed signs of easing.
The European Central Bank (ECB) also cut its key interest rate, marking the first reduction since September 2019. The move brings the rate from its previous record high of 4% to 3.75%, which has been in place since September 2023.
Against this backdrop, we highlight below some winning ETF areas from June.
Best ETFs by sector over the past month
Cryptocurrency Miners ETFs
Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) – Up 22.7%
Bitcoin lost about 10% of its price in June (likely due to the rising greenback), which put pressure on crypto stocks. But crypto stocks saw gains last week as sentiment improved. Notably, the WGMI fund started a run-up from June 3 and hit a monthly high on June 20, after which it started falling. Shares of companies like Hut 8 Corp (NASDAQ:HUT) surged 66.9% in June, boosting the WGMI ETF despite bitcoin’s monthly drop.
Healthcare ETFs
FNB Simplifying healthcare (NYSE: PINK) – Up 8.2%
The fund is exposed to companies in biotechnology, medtech, gene therapy and other high-growth healthcare-related sectors. Its core holdings section is dominated by big names in medtech. The sector is expected to be worth $210 billion in 2024, according to Statista.
Looking forward, the industry is expected to grow at a constant annual growth rate (CAGR 2024-2029) of 4.87%, resulting in a market volume of $266.40 billion by 2029. Meanwhile, major pharmaceutical companies are coming up with new data on drugs.
Indian ETFs
iShares MSCI India Small Cap ETF (BAT) – Up 7.2%
India’s growth potential makes it an attractive choice for investors. Strong private consumption is a plus for the fund. In addition, the growing labour force and booming business creation are supportive. The election of Prime Minister Modi for a third term has finally boosted the stock market, although it had initially collapsed when the election results were announced.
Master Limited Partnerships AND F
InfraCap MLP Exchange Traded Fund (NYSE:AMZA) – Up 7%
WTI Crude Oil ETF United States Oil Fund LP rose 4% in June. This likely boosted MLP ETFs. MLPs are attracting investor attention because they do not pay taxes at the entity level and are therefore able to pay out most of their income (over 90%) as dividends like REITs. The AMZA fund yields 7.30% per year.
As if that weren’t enough, the Fed is likely to cut interest rates later this year. Since MLPs rely on a huge amount of debt, if interest rates fall, they won’t have to pay more for the huge amount of money they borrow, which could, in turn, help them increase/maintain their dividend payout ratio.
The Seven Magnificent ETFs
Roundhill Magnificent Seven ETF (NASDAQ:MAGS) – Up 6.9%
The “Mercenary Seven” — which includes NVIDIA, Microsoft, Apple, Amazon, Alphabet, Meta and Tesla — were the biggest contributors to the stock market’s rise. NVIDIA rose 7.6%, Apple gained 10.7%, Microsoft climbed 4.1%, Amazon added 6.2%, Alphabet gained 3.4%, Meta jumped 6.3% and Tesla jumped 12.3%.
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