4 Best Performing Sector ETFs Of December

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Despite the surge in coronavirus cases, December has been kind for the U.S. stock market with the major indices enjoying a historic rally. This is especially true against the backdrop of vaccine optimism and its availability, which has set the stage for a speedy recovery thereby boosting demand for several types of products and services in the economy.

Currently, Pfizer (PFE - Free Report) and Moderna (MRNA - Free Report) have been leading the way in the vaccination race with millions of Americans being immunized with the first round of these shots. A fresh stimulus package of $900 billion has also added to the strength lately. The additional spending will help to cushion the economy amid the second round of restrictions put in place by states and local authorities to manage the COVID-19 spread.

The rally has been broad-based across various market spectrums and sectors. Still, a few sectors have garnered strong investor interest and have outperformed. We have highlighted those four sectors and their top-performing ETF for the month:

Commodity Producers: North Shore Global Uranium Mining ETF (URNM - Free Report)

Uranium miners have been on a stellar ride on optimism over the U.S. Senate Committee on Environment and Public Works’ bill aimed at establishing a U.S. national strategic reserve of uranium. As a result, URNM has surged 45.8% in a month.

This ETF provides exposure to companies that are involved in the mining, exploration, development, and production of uranium, as well as companies that hold physical uranium or other non-mining assets. It follows the North Shore Global Uranium Mining Index and charges investors 85 bps in annual fee. The ETF has accumulated $39.9 million in its asset base and trades in lower volume of 27,000 shares per day on average.

Cybersecurity: Global X Cybersecurity ETF (BUG - Free Report)

The cybersecurity stocks soared on the recent SolarWinds software hack, which has impacted a number of U.S. companies and government agencies. The massive cyberattack has raised the demand for security-related purchases by both companies and governments, which in turn will boost spending in the space. BUG has gained 23.8% this month.

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