Best June For Stocks In Decades: 5 Best ETFs

After the May swoon, Wall Street staged a strong comeback on hopes of monetary easing across the globe. Early this month, Fed hinted at rate cuts given the implications of the trade tensions on the economy. Aggravating trade disputes, global recession fears and bouts of weak data triggered speculation of rate cuts.

The European Central Bank also pledged stimulus if economic condition in Europe does not improve. Australia’s central bank recently slashed benchmark rates to a record low of 1.25%. Last month, New Zealand’s central bank cut its benchmark interest rate for the first time in two-and-a-half years. India also cut interest rates for the third time this month. Many other countries are also expected to cut rates in the coming weeks or months.

The U.S.-Mexico deal, slew of mergers and acquisitions and expectation of resuming U.S.-China trade talks next week added to the strength.

Notably, the Dow Jones is on track to post its best June gain of nearly 7% since 1938 while the S&P 500 is on pace for the best gain since 1955, climbing about 6% so far. Meanwhile, the Nasdaq Composite Index would represent its best June since 2000 with a return of 6.8%. The S&P 500 is within 1% of its Apr 30 record, while the Dow is short 1.4% of its all-time closing peak.

While there have been winners in every corner of the space, several ETFs have easily crushed the market by wide margins. Below, we have presented a bunch of top-performing ETFs so far this month that will continue to outperform if the current trends continue.

Global X Genomics & Biotechnology ETF (GNOM - Free Report) – Up 12.5%

This is a new entrant in the space having accumulated $4.4 million since its inception on Apr 5. It seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology. The product follows the Solactive Genomics Index, charging 68 bps in annual fees. It holds 40 stocks in its basket.

Invesco DWA Healthcare Momentum ETF (PTH - Free Report) – Up 9.7%

This fund targets the broad healthcare sector by tracking the DWA Healthcare Technical Leaders Index. With AUM of $145.5 million, it holds a basket of 46 U.S. companies and charges 60 bps in annual fees. Healthcare equipment and supplies take the largest share at 36%, while biotechnology and healthcare providers and services round off the next two spots with double-digit exposure each. PTH has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Sprott Gold Miners ETF (SGDM - Free Report) - Up 9.4%

This fund follows the Sprott Zacks Gold Miners Index, which aims to track the performance of large to mid-capitalization gold companies whose stocks are listed on major U.S. exchanges. It holds 27 stocks in its basket with Canadian firms taking the largest allocation at 79.4%. The fund has amassed $154.7 million in its asset base and charges 57 bps in annual fees from investors.

ETFMG Prime Junior Silver ETF (SILJ - Free Report) – Up 9.2%

This product provides a true small-cap play on the silver mining space by tracking the Prime Junior Silver Miners & Explorers Index. It holds 30 stocks in its basket with heavy concentration on the top four firms. The fund has managed assets worth $49.7 million and charges 69 bps in annual fees.

Materials Select Sector SPDR (XLB - Free Report) – Up 8.7%

This is the most popular material ETF that follows the Materials Select Sector Index. It manages about $4.2 billion in its asset base and charges investors 13 bps in annual fees. The fund holds about 28 securities in its basket. In terms of industrial exposure, chemicals dominates the portfolio with three-fourth share, while containers & packaging, and metals & mining round off the top three positions. The product has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.

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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