Top Sector ETFs Of Summer

The summer season, which unofficially spans from Memorial Day to Labor Day, was moderate this year for the U.S. market. This three-month long period started off with anxious investors mulling over the Brexit referendum outcome (read:Labor Day Weekend Travel Puts These ETFs in Focus).

Though the U.K. finally decided to part ways with the European Union at June end, the broader market steadied to start July after a few days of the Brexit-driven upheaval. The appeal of U.S. equities brightened and the global market took a breather from the horrendous Brexit-led sell-off in late June. Also, slight stabilization in oil prices in early July, decent corporate earnings and a volley of upbeat U.S. economic data acted as tailwinds (read: Top ETF Stories of July).

But following an outstanding July, August has been lukewarm for U.S. equities. Strengthening Fed rate hike bets and finally tepid job data at the eleventh hour left a last-minute impact on the ETF scorecard for summer. Overall, the S&P 500-based ETF SPDR S&P 500 ETF (SPYadded about 4.4% in the last three months (as of September 2, 2016) (read: ETF Winners & Losers from Earnings Season).

Below we highlight the winning sector ETFs of summer 2016.

Material

Since precious metals had an astounding rally this year, mining ETFs recorded solid gains in summer. ETFs like Global X Silver Miners ETF (SIL - ETF report)PowerShares Global Gold & Precious Metals ETF (PSAU - ETF report) and VanEck Vectors Gold Miners ETF (GDX - ETF report) added about 27.2%, 10.6% and 7.8% in the last three months (as of September 2, 2016).          

While a flight to safety boosted this safe-haven metal like gold post Brexit, silver mining ETFs gained considerably as the metal has high usage in industrial activities with about 50% of total demand coming from industrial applications. Manufacturing activities in the U.S. showed signs of improvement in the early phase of summer, ushering in gains for silver mining stocks (read: Want to Dig Into Mining ETFs with 100% YTD Gains Seen Already?).

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