4 Best Performing Sector ETFs Of May

The popular adage “Sell in May and Go Away” proved wrong this year as Wall Street is on track to log the best May in nine years. With just one trading session left to the month, the S&P 500 gained 3.3%, Dow Jones is up 3.1%, and Nasdaq Composite Index has moved up by 5.1% in May.

Power-packed earnings and easing U.S.-China trade fears led to the rally though bouts of political news like deepening crisis in Italy and renewed sanction on Iran as well as higher yields continued to keep the market at check. In particular, rising oil prices infused optimism in the energy sector and gave a huge boost to the broad stock market.

That said, a few sectors have easily crushed the market this month. Below we have highlighted such sector ETFs that have gained handsomely in May and could be better plays in the months ahead should the trends prevail.

ARK Genomic Revolution Multi-Sector ETF (ARKG - Free Report)

The biotech sector got a dual boost from encouraging fundamentals including a wave of mergers & acquisitions, and its non-cyclical nature, which provides a defensive tilt to the portfolio in a turbulent market. Additionally, Trump’s most-awaited plan to lower drug prices has added to the strength. While almost all the healthcare ETFs surged, ARKG emerged as the winner, climbing 13.6%.

This is an actively managed ETF focusing on companies that are expected to benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments, improvements and advancements in genomics into their business. The fund holds 38 stocks in its basket with heavy concentration on the top firm at 11.2%. Other firms hold no more than 7.52% share. The product has amassed $176.2 million in its asset base and trades in a good average daily volume of around 93,000 shares. The expense ratio comes in at 0.75%.

First Trust Nasdaq Semiconductor ETF (FTXL - Free Report)

After taking a huge beating, the semiconductor corner of the broad technology market once again heated up in May due to reduced tensions between the United States and China. This is because U.S. chipmakers have the largest sales exposure to China. Additionally, the string of better-than-expected results from industry players such as Intel (INTC - Free Report) , Texas Instruments (TXN - Free Report) , MKS Instruments (MKSI - Free Report) , Lam Research (LRCX - Free Report) and Microchip Technology (MCHP - Free Report) instilled optimism in the space.

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