5 Best-Performing ETFs At Halfway June

The month of June started with a bang, extending the bull rally. The optimism over accelerating economic activities as many states reopened, a booming technology sector, an unprecedented stimulus from the central bank and the government, and hopes of a potential coronavirus vaccine were the biggest catalysts in driving the stocks higher.

Additionally, the Fed’s move to provide liquidity in the markets and the Trump administration’s $1 trillion infrastructure proposal added to the strength. The central bank announced that it would begin purchasing individual corporate bonds as part of its emergency lending program to inject liquidity into the virus-stricken economy.

However, renewed concerns over a second wave of coronavirus infections and Federal Reserve’s dim outlook made investors’ jittery last week. Most notably, Texas reported 2,504 new coronavirus cases, the highest one-day total since the pandemic emerged. A month into its reopening, Florida reported 8,553 new cases — the maximum in any seven-day period — and California reported the highest number of hospitalizations since May 13 that have risen in nine of the past 10 day.

Given this, we have highlighted the best-performing ETFs from five different zones that are leading the way in mid-June:

Airlines: U.S. Global Jets ETF (JETS - Free Report)

This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. In total, the product holds 40 securities and charges investors 60 bps in annual fees. The fund has gathered $1.4 billion in its asset base while sees solid trading volume of nearly 3 million shares a day. It has gained 20% so far this month and has a Zacks ETF Rank #4 (Sell) with a High-risk outlook.

Energy: First Trust ISE-Revere Natural Gas Index Fund (FCG - Free Report)

This fund offers exposure to U.S. stocks that derive a substantial portion of their revenues from the exploration and production of natural gas. It follows the ISE-REVERE Natural Gas Index and holds 34 stocks in its basket. The fund has amassed $96.2 million in its asset base while charging 60 bps in annual fees. Volume is good with 1.3 million shares exchanged per day on average. The product is up 15.4% at mid-way through June and has a Zacks ETF Rank #3 (Hold) with a High-risk outlook.

Industrials: SPDR S&P Kensho Smart Mobility ETF (HAIL - Free Report)

This ETF offers exposure to companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones, and drone. It follows the S&P Kensho Smart Transportation Index, holding 60 stocks in its basket. Automobile manufacturers, auto parts & equipment, semiconductors, and electrical components & equipment are the key industries with double-digit exposure each. HAIL has amassed $5.7 million in its asset base and charges 45 bps in annual fees. It trades in average daily volume of 4,000 shares and has gained 10.6% so far this month.

Financial: Invesco KBW High Dividend Yield Financial ETF (KBWD - Free Report)

This ETF follows the KBW Nasdaq Financial Sector Dividend Yield Index, which is a modified-dividend yield-weighted index of companies principally engaged in the business of providing financial services and products. It holds 41 stocks in its basket and has 1.58% in expense ratio. The product has amassed $237 million in its asset base and has risen 10.6% in the same timeframe. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Clean Energy: Invesco WilderHill Clean Energy ETF (PBW - Free Report)

It provides exposure to U.S. companies engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds about 42 stocks in its basket. The fund has AUM of $332.1 million in its asset base and sees a good volume of nearly 122,000 shares a day. It charges 70 bps in annual fees and has gained 9.4% so far this month.

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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