5 Sector ETFs That Crushed The Market In April

April proved to be the solid month for the U.S. stock market with all the three major indices hovering near record highs. In fact, the S&P 500 topped the new milestone of 4,000 for the first time on the first day of April while the Nasdaq Composite Index regained momentum on the pullback in Treasury yields from the peak reached last month.

The rally came on a strong start to the Q1 earnings season and rounds of upbeat economic data, pointing to a rebound in consumer spending, sentiment and the jobs market. Notably, Q1 results from 30.6% of the S&P 500 members that have reported are up 46% on 5.9% higher revenues, with 84.3% beating EPS estimates and 75.2% beating revenue estimates. This is a notably better performance relative to the group companies seen in the other recent periods.

Looking at Q1 as a whole, combining the actual results that have come up with estimates for the still-to-come companies, total earnings are expected to increase 31% on 6.8% revenue growth. This reflects a solid improvement from the 12.6% growth expected at the start of Q1 and follows the 3.1% earnings growth in Q4. Investors should note that Q1 earnings are on track to reach a new quarterly record at $381.6 billion, surpassing the previous record of $373.7 billion set in Q4 2020 (read: ETFs to Play the Strong Q1 Earnings Trend).

Additionally, rapid vaccinations, progress on more vaccines and expanded stimulus continued to drive the stocks higher. Further, the United States is expected to become the engine of the global economy this year with the strongest growth in decades. Per the IMF projection, the U.S. economy is expected to grow 6.4% this year. Per the latest report from the Commerce Department, the U.S. economy expanded 6.4% annually in the first quarter, indicating a fast recovery from the recession.

Against such a backdrop, we have highlighted five sector ETFs that outperformed in April and are likely to continue doing so, should the same trends prevail.

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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 ...

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