5 Sector ETFs That Crushed The Market In July

Bulls continued to rage higher in July powered by hopes of easing money policies and positivity surrounding the trade deal. In fact, the S&P 500 hit the major 3,000 milestone and the Dow Jones breached 27,0000 for the first time ever early in the month. Notably, the S&P 500 ETF (SPY - Free Report) and Dow Jones ETF (DIA - Free Report) are up 2.6% and 2.3%, respectively, this month.

Lower interest rates will keep borrowing cost down, thereby resulting in higher consumer spending and rise in economic activities. Additionally, recovery in the U.S. housing market, rising oil price and the wave of mergers & acquisitions added to the strength. However, unresolved trade issues, global growth concerns and geopolitical tensions remained an overhang.

The gains are broad-based with a few sector ETFs easily outperforming the broad market. Below we have highlighted five such ETFs that have accumulated handsome gains in July and could be better plays in the months ahead, provided the same trends prevail.

ETFMG Prime Junior Silver ETF (SILJ - Free Report) – Up 17.2%

Silver mining stocks have been on an uptrend in July, thanks to a subdued dollar on hopes ofa rate cut. As silver is used in a wide range of industrial applications, the demand for the metal is on the rise. The increase in demand can be attributed to ongoing growth in the global solar PV industry, rebound in global computer shipments, as well as new sources of demand for sensors used in IoT and OLED lighting. SILJ provides direct exposure to the silver mining exploration and production industry by tracking the Prime Junior Silver Miners & Explorers Index. It holds 33 stocks in its basket with higher concentration on the top four firms. Canadian firms take the lion’s share at 67.9%, while the United States, Peru and Brazil take the remainder. The fund has managed assets worth $87.1 million and trades in a good volume of nearly 142,000 shares a day. It charges 69 bps in annual fees.

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