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Exchange-Traded Funds First Cut ETFs

Hottest Sector ETFs

Looking at one-month returns for sector ETFs gives a short-term snapshot of what’s happening in the markets and which ETFs are performing better than their peers currently.

by Matthew Bajkowski | August 2021

Featured Tickers:

This month’s ETF First Cut highlights the hottest sector ETFs within their sector category, those with the best one-month returns as of June 30. This list is a ranking of funds focused on an individual market sector, such as technology. Looking at one-month returns for sector ETFs gives a short-term snapshot of what’s happening in the markets and which ETFs are performing better than their peers currently.

Passing ETFs ranked in the top 20% of their category for their one-month returns, based on net asset value (NAV). The screen excludes leveraged and inverse ETFs and requires an expense ratio category rank below 50%. Passing ETFs must have at least $100 million in total assets and a minimum daily trading volume of 10,000 shares.

The passing ETFs represent 12 sectors in total. The miscellaneous sector is represented the most, with five ETFs. This category includes sectors that do not fit into any of Morningstar’s existing sector categories and sectors where not enough ETFs exist to merit a separate category. However, each of the five miscellaneous sector funds on the list is invested in “clean” energy, which is a growing market as governments announce plans to decarbonize their economies.

 

Hottest Sector ETFs
(Ranked by One-Month Return)

A+ Investor subscribers can see an updated list at https://www.aaii.com/etfs/firstcuts.

Fund Ticker 1-Mo Ret
(%)		 1-Yr Ann’lizd Ret
(%)		 3-Yr Ann’lizd Ret
(%)		 Total Assets
($ Mil)		 Sector
WisdomTree Cloud Computing ETF WCLD 12.9 43.4 --            1,283 Technology
Invesco Solar ETF TAN 12.7 147.9 57.4            3,568 Miscellaneous Sector
Invesco WilderHill Clean Energy ETF PBW 12.6 131.2 57.4            2,283 Miscellaneous Sector
Invesco S&P SmallCap Energy ETF PSCE 12.2 140.9 (21.6)               217 Equity Energy
First Trust NASDAQ Cln Edge GrnEngyETF QCLN 10.8 133.5 53.8            2,813 Miscellaneous Sector
ALPS Clean Energy ETF ACES 9.8 95.1 46.3            1,007 Miscellaneous Sector
VanEck Vectors Biotech ETF BBH 9.7 24.1 19.4               574 Health
SPDR S&P Oil & Gas Explor & Prodtn ETF XOP 9.0 89.3 (15.9)            4,160 Equity Energy
iShares Expanded Tech-Software Sect ETF IGV 8.8 37.4 29.2            5,076 Technology
Principal Healthcare Innovators ETF BTEC 8.7 37.5 20.6               176 Health
SPDR FactSet Innovative Technology ETF XITK 8.5 55.7 34.2               364 Technology
First Trust Dow Jones Internet ETF FDN 8.5 43.6 21.2            10,809 Technology
Global X CleanTech ETF CTEC 7.7 -- --               149 Miscellaneous Sector
SPDR S&P Retail ETF XRT 4.1 128.9 27.8               972 Consumer Cyclical
Vanguard Communication Services ETF VOX 4.1 55.7 20.4            4,128 Communications
iShares Self-Driving EV and Tech ETF IDRV 3.9 79.1 --               402 Industrials
iShares Cohen & Steers REIT ETF ICF 3.6 32.3 12.2            2,378 Real Estate
Consumer Discret Sel Sect SPDR ETF XLY 3.5 40.7 19.2            20,207 Consumer Cyclical
Invesco Active US Real Estate PSR 3.2 32.1 11.6               123 Real Estate
SPDR S&P Aerospace & Defense ETF XAR 2.2 52.2 16.2            1,415 Industrials
SPDR S&P Capital Markets ETF KCE 1.8 71.2 20.5               118 Financial
SPDR Dow Jones Global Real Estate ETF RWO 1.2 36.2 6.1            1,689 Global Real Estate
iShares US Broker-Dealers&Secs Exchs ETF IAI 0.5 72.8 18.7               934 Financial
iShares North American Natural Res ETF IGE 0.3 45.2 (2.3)               469 Natural Resources
Consumer Staples Select Sector SPDR ETF XLP (0.5) 22.4 13.9            11,617 Consumer Defensive
Source: AAII/Morningstar. Data as of 6/30/2021.

 

Hottest Sector ETFs Video

We think you’d like this related webinar! Individual Investor Show: Closed-End Funds, Selecting Stocks With PRISM, Hot Sector ETFs


 

Discussion

BARRY J from TX posted over 4 years ago:

I love the brevity of this article. But can someone explain to me why a long-term investor -- like AAII members -- care about short term performance over a month ago? Isn't this "(not so)hot tip" a little late to act on?


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