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Wall Street saw a highly volatile May. Market participants continue to worry about the external factor impacting the investing world. The major market indices again bore the brunt of these factors as they ended last week in the red. The Dow Jones Industrial Average and the tech-heavy Nasdaq composite indices were down about 1% for the week ending Jun 3. The S&P 500 Index also lost 1.2% in the same period.
Investors are expected to remain on edge in the coming months. The ongoing Russia-Ukraine geopolitical crisis, disturbances in supply-chain distribution, surging inflation levels and the hawkish Federal Reserve to revive the inflation levels to its target range of 2%, are all adding to the market uncertainty. These factors built tensions among investors who fear the U.S. economy to slip into recession. JPMorgan (JPM) CEO Jamie Dimon also mentioned that he sees an economic hurricane to hit soon, per a CNBC article.
Meanwhile, a slew of encouraging U.S. economic data releases is highlighting the underlying strength in the U.S. economy. April’s encouraging U.S. industrial output data brought in some hope despite the current turbulent market conditions. The latest ISM Manufacturing Purchasing Managers' Index (PMI)data for the United States is also relieving.
Considering the current investing environment, let’s glance at some top-ranked ETFs that investors can consider for June:
The energy space has been a vital investment area so far, holding the interest of market participants since the start of the year. Reopening global economies, ramp-up of the coronavirus vaccine rollout and bettering labor markets further boosted the sector.
The spike in oil prices due to the Russia-Ukraine crisis increased the sector’s momentum. The European Union leaders finally agreed on an embargo to restrict 90% of Russian crude by the end of 2022. The sanctions will immediately impose a ban on 75% of the Russian oil imports. The EU’s oil embargo can induce a sharp rally in oil prices to increase the burden on the already tight oil supplies. U.S. gasoline demand is also going to shoot up soon as the Memorial Day weekend marks the beginning of the U.S. summer driving season.
FENY seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Energy Index. FENY has an AUM of $1.75 billion and charges a fee of 0.08%. It carries a Zacks ETF rank #1 (Strong Buy) (read: Tap the Best-Performing Sector YTD With These ETFs).
Value investing is looking to be more appealing, given the rebounding U.S. economy, the expectation of higher inflation and the Fed’s aggressive stance on interest rate hikes. Moreover, value stocks seek to capitalize on market inefficiencies. They can deliver higher returns with lower volatility than their growth and blend counterparts. Additionally, value stocks are less exposed to the trending markets and their dividend payouts offer a shield against market turbulence.
Invesco S&P 500 Enhanced Value ETF is based on the S&P 500 Enhanced Value Index. With an AUM of $176 million, SPVU charges 13 basis points (bps) as an expense ratio. SPVU carries a Zacks ETF Rank #1.
Generally, rising rate environments do not bode well for the dividend-paying stocks. However, in the current environment, rates are being hiked to curb high inflation levels. Moreover, investors have a defensive sentiment due to the potential of an economic recession in the United States. Thus, they are searching for alternative sources of yields that can generate steady cash flows. Traditionally, quality dividends can be more value-oriented investments.
iShares Core Dividend Growth ETF seeks to track the investment results of dividend-paying large-cap companies with growth characteristics in the U.S. equity market. DGRW holds 418 securities in the basket and charges 8 bps in annual fees. The product has an AUM of $23.43 billion and a Zacks ETF Rank #1.
Cloud computing and storage are expected to stay in vogue during 2022. The space received quite a push amid the coronavirus outbreak, with a vast population working from home across the globe. Even amid the global acceleration of coronavirus vaccine rollout, demand for cloud computing is set to stay robust and continue post pandemic.
It is worth knowing that cloud computing and storage found applications in social networking, messaging apps and streaming services. The same empowered video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. Cloud computing is also supporting organizations in remotely processing a lot of information, and developing and running key applications and services.
Global X Cloud Computing ETF provides exposure to 36 securities and seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Cloud Computing Index.The product managed assets worth $739.1 million and charges 68 bps of annual fees and expenses. CLOU currently carries a Zacks ETF Rank #2 (Buy).
The Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
The consumer discretionary sector is largely influenced by the U.S. consumer spending. The strength in the labor market is painting a rosy picture for the sector. The latest jobs report is also positive. The U.S. economy added 390,000 jobs in May, beating market forecasts of 325,000 but lagging 436,000 jobs posted in April. The unemployment rate was 3.6%, just above the lowest level since December 1969. Average hourly earnings increased 0.3% from April level, slightly lower than the 0.4% estimate. The year-over-year increase of 5.2% for wages met expectations.
The Consumer Discretionary Select Sector SPDR Fund seeks to track the investment results of an index composed of U.S. equities in the healthcare sector. With an AUM of $15.94 billion, XLY charges 10 bps as fees. The Consumer Discretionary Select Sector SPDR Fund also sports a Zacks ETF Rack #1.
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5 Top-Ranked ETFs to Consider for June
Wall Street saw a highly volatile May. Market participants continue to worry about the external factor impacting the investing world. The major market indices again bore the brunt of these factors as they ended last week in the red. The Dow Jones Industrial Average and the tech-heavy Nasdaq composite indices were down about 1% for the week ending Jun 3. The S&P 500 Index also lost 1.2% in the same period.
Investors are expected to remain on edge in the coming months. The ongoing Russia-Ukraine geopolitical crisis, disturbances in supply-chain distribution, surging inflation levels and the hawkish Federal Reserve to revive the inflation levels to its target range of 2%, are all adding to the market uncertainty. These factors built tensions among investors who fear the U.S. economy to slip into recession. JPMorgan (JPM) CEO Jamie Dimon also mentioned that he sees an economic hurricane to hit soon, per a CNBC article.
Meanwhile, a slew of encouraging U.S. economic data releases is highlighting the underlying strength in the U.S. economy. April’s encouraging U.S. industrial output data brought in some hope despite the current turbulent market conditions. The latest ISM Manufacturing Purchasing Managers' Index (PMI)data for the United States is also relieving.
Considering the current investing environment, let’s glance at some top-ranked ETFs that investors can consider for June:
Fidelity MSCI Energy Index ETF (FENY - Free Report)
The energy space has been a vital investment area so far, holding the interest of market participants since the start of the year. Reopening global economies, ramp-up of the coronavirus vaccine rollout and bettering labor markets further boosted the sector.
The spike in oil prices due to the Russia-Ukraine crisis increased the sector’s momentum. The European Union leaders finally agreed on an embargo to restrict 90% of Russian crude by the end of 2022. The sanctions will immediately impose a ban on 75% of the Russian oil imports. The EU’s oil embargo can induce a sharp rally in oil prices to increase the burden on the already tight oil supplies. U.S. gasoline demand is also going to shoot up soon as the Memorial Day weekend marks the beginning of the U.S. summer driving season.
FENY seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Energy Index. FENY has an AUM of $1.75 billion and charges a fee of 0.08%. It carries a Zacks ETF rank #1 (Strong Buy) (read: Tap the Best-Performing Sector YTD With These ETFs).
Invesco S&P 500 Enhanced Value ETF (SPVU - Free Report)
Value investing is looking to be more appealing, given the rebounding U.S. economy, the expectation of higher inflation and the Fed’s aggressive stance on interest rate hikes. Moreover, value stocks seek to capitalize on market inefficiencies. They can deliver higher returns with lower volatility than their growth and blend counterparts. Additionally, value stocks are less exposed to the trending markets and their dividend payouts offer a shield against market turbulence.
Invesco S&P 500 Enhanced Value ETF is based on the S&P 500 Enhanced Value Index. With an AUM of $176 million, SPVU charges 13 basis points (bps) as an expense ratio. SPVU carries a Zacks ETF Rank #1.
iShares Core Dividend Growth ETF (DGRO - Free Report)
Generally, rising rate environments do not bode well for the dividend-paying stocks. However, in the current environment, rates are being hiked to curb high inflation levels. Moreover, investors have a defensive sentiment due to the potential of an economic recession in the United States. Thus, they are searching for alternative sources of yields that can generate steady cash flows. Traditionally, quality dividends can be more value-oriented investments.
iShares Core Dividend Growth ETF seeks to track the investment results of dividend-paying large-cap companies with growth characteristics in the U.S. equity market. DGRW holds 418 securities in the basket and charges 8 bps in annual fees. The product has an AUM of $23.43 billion and a Zacks ETF Rank #1.
Global X Cloud Computing ETF (CLOU - Free Report)
Cloud computing and storage are expected to stay in vogue during 2022. The space received quite a push amid the coronavirus outbreak, with a vast population working from home across the globe. Even amid the global acceleration of coronavirus vaccine rollout, demand for cloud computing is set to stay robust and continue post pandemic.
It is worth knowing that cloud computing and storage found applications in social networking, messaging apps and streaming services. The same empowered video conferencing, gaming, e-commerce shopping, remote project collaboration, online classes, editing, etc. Cloud computing is also supporting organizations in remotely processing a lot of information, and developing and running key applications and services.
Global X Cloud Computing ETF provides exposure to 36 securities and seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Cloud Computing Index.The product managed assets worth $739.1 million and charges 68 bps of annual fees and expenses. CLOU currently carries a Zacks ETF Rank #2 (Buy).
The Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
The consumer discretionary sector is largely influenced by the U.S. consumer spending. The strength in the labor market is painting a rosy picture for the sector. The latest jobs report is also positive. The U.S. economy added 390,000 jobs in May, beating market forecasts of 325,000 but lagging 436,000 jobs posted in April. The unemployment rate was 3.6%, just above the lowest level since December 1969. Average hourly earnings increased 0.3% from April level, slightly lower than the 0.4% estimate. The year-over-year increase of 5.2% for wages met expectations.
The Consumer Discretionary Select Sector SPDR Fund seeks to track the investment results of an index composed of U.S. equities in the healthcare sector. With an AUM of $15.94 billion, XLY charges 10 bps as fees. The Consumer Discretionary Select Sector SPDR Fund also sports a Zacks ETF Rack #1.