5 Niche ETFs Sizzling This Summer

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Wall Street has been shining bright this summer with the S&P 500 and the Nasdaq Composite Index hitting a series of new highs. The S&P 500 has been enjoying the longest winning streak since the 10-month run that ended in December 2017 while the Nasdaq Composite Index notched its third winning month in a row after topping 15,000 for the first time ever.

This is primarily thanks to upbeat corporate earnings, renewed optimism in a sustained economic recovery, and the Fed’s dovish view. The overall Q2 earnings picture is very strong, with broad-based strength across all major sectors and the overall quarterly total on track to reach a new all-time record.

The first full U.S. approval of a COVID-19 vaccine made by Pfizer (PFE - Free Report) and BioNTech bolstered risk-on trade as it will help put brakes on the ongoing surge in the COVID-19 Delta variant cases and lead to continued reopening of the economy. The U.S. economy returned to the pre-pandemic level with GDP rising 6.6% annually in the second quarter, indicating a sustained recovery from the pandemic recession. Rapid vaccinations, business reopenings and trillions of dollars of government stimulus spending are powering consumer spending and resulting in robust growth.

Additionally, Chairman Jerome Powell in the Jackson Hole conference stated that the central bank is in no hurry to raise interest rates though it will gradually begin tapering $120 billion in monthly bond purchases by the end of the year.

The rally came despite the surge in Delta variant of COVID-19 cases, taper talks, signs of slowdown in China economy, and inflationary pressures.

Given this, most ETFs have gained handsomely over the past three months. We have highlighted five of them from different corners of the market that are leading the summer rally and could be solid picks for the rest of the year too:

Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO - Free Report) – Up 35.7%

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