We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The month of July was upbeat for Wall Street as the S&P 500 added about 3%, the Dow Jones gained 3.1%, the Nasdaq advanced 3.8% and the Russell 2000 jumped about 4.9% last month. The key developments included a 25-bps Fed rate hike, the release of better-than-expected U.S. GDP growth data for Q2, along with several other upbeat data points, and a good start to a Q2 earnings season with banking giants showing strength and falling inflation.
Against this backdrop, below, we highlight a few top-performing ETF areas for the month of July.
Electric Vehicles
Defiance Pure Electric Vehicle ETF – Up 53.2%
There has been a significant push toward more sustainable transport globally. Electric vehicle sales have surged amid this movement, and the market share of EVs is expected to grow in the coming years. Stricter fuel emission standards and the rollout of more vehicle charging stations under supportive administrations are accelerating the adoption of EVs.
Cryptocurrency
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) – Up 29.4%
The month of July was very positive for cryptocurrencies. Last month, BlackRock (BLK - Free Report) , the world's largest asset manager, filed for a spot ETF application. Many other ETF providers also joined the race with their filings. 21Shares has filed a spot Bitcoin ETF application in partnership with Cathie Wood's ARK Invest and is the first in line currently.
The decision on the lawsuit filed by Grayscale against the regulator over the conversion of its massive Grayscale Bitcoin Trust (GBTC) into an ETF is expected this fall. GBTC's discount to its NAV has narrowed significantly since BlackRock's filing.
Notably, last year, bitcoin was thrashed as rising rates weighed on speculative and growth investments. This has helped the crypto block to bounce back with all force as the rate environment this year has remained much more benign than in 2022 (read: Will the Rally in Bitcoin Mining ETFs Last in 2H23?).
Energy
SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) – Up 23.4%
Despite prevailing economic challenges impacting the broader energy industry, investor confidence regarding the oil market remained optimistic. The price of oil remains strong and there is potential for further increase as global crude consumption is expected to rise.
Positive projections for global oil demand, a weaker U.S. dollar and the ongoing supply cuts from OPEC+ have contributed to these price trends. Upbeat U.S. economic indicators and policy easing in China boosted the demand outlook, too. U.S. investors now expect a possible tightening of U.S. crude supplies (read: Here's Why Oil ETFs Likely to Gain in the Near Term).
During the second quarter, a significant shift in deposit trends was noticed in the American banking system, with regional banks gaining ground over their larger counterparts as the pint-sized banks offered higher yields to boost deposits.
JPMorgan Chase, Bank of America, Citigroup and Wells Fargo, the four largest banks by assets, experienced a net decline of $262 billion in deposits compared to the previous year, per a Yahoo Finance article. Per the article, several regional banks showed an increase in deposits despite higher rates and the crisis in Q1. Plus, regional bank stocks are available at a cheaper valuation. A steepening yield curve and an improving U.S. economy are the other positives.
China
Invesco Golden Dragon China ETF (PGJ - Free Report) – Up 18.3%
After shying away from China, sentiment for investing in that country improved in July. Net foreign buying in mainland Chinese equities marked their best month since April, official data showed. There is a reason behind the development too.
China cut the key interest rate in 10 months amid post-Covid recovery slowdown in June, which boosted the markets in July. China’s housing ministry announced plans to make it easier for people to buy property, boosting its ailing real estate sector.
China ETFs, in fact, bounced back sharply last week as global hedge funds scooped up Chinese equities following the latest politburo meeting. The meeting clearly indicated support for capital markets and signaled the introduction of bigger easing measures to shore up the economy.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Top-Performing ETF Areas of July
The month of July was upbeat for Wall Street as the S&P 500 added about 3%, the Dow Jones gained 3.1%, the Nasdaq advanced 3.8% and the Russell 2000 jumped about 4.9% last month. The key developments included a 25-bps Fed rate hike, the release of better-than-expected U.S. GDP growth data for Q2, along with several other upbeat data points, and a good start to a Q2 earnings season with banking giants showing strength and falling inflation.
Against this backdrop, below, we highlight a few top-performing ETF areas for the month of July.
Electric Vehicles
Defiance Pure Electric Vehicle ETF – Up 53.2%
There has been a significant push toward more sustainable transport globally. Electric vehicle sales have surged amid this movement, and the market share of EVs is expected to grow in the coming years. Stricter fuel emission standards and the rollout of more vehicle charging stations under supportive administrations are accelerating the adoption of EVs.
Cryptocurrency
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) – Up 29.4%
The month of July was very positive for cryptocurrencies. Last month, BlackRock (BLK - Free Report) , the world's largest asset manager, filed for a spot ETF application. Many other ETF providers also joined the race with their filings. 21Shares has filed a spot Bitcoin ETF application in partnership with Cathie Wood's ARK Invest and is the first in line currently.
The decision on the lawsuit filed by Grayscale against the regulator over the conversion of its massive Grayscale Bitcoin Trust (GBTC) into an ETF is expected this fall. GBTC's discount to its NAV has narrowed significantly since BlackRock's filing.
Notably, last year, bitcoin was thrashed as rising rates weighed on speculative and growth investments. This has helped the crypto block to bounce back with all force as the rate environment this year has remained much more benign than in 2022 (read: Will the Rally in Bitcoin Mining ETFs Last in 2H23?).
Energy
SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) – Up 23.4%
Despite prevailing economic challenges impacting the broader energy industry, investor confidence regarding the oil market remained optimistic. The price of oil remains strong and there is potential for further increase as global crude consumption is expected to rise.
Positive projections for global oil demand, a weaker U.S. dollar and the ongoing supply cuts from OPEC+ have contributed to these price trends. Upbeat U.S. economic indicators and policy easing in China boosted the demand outlook, too. U.S. investors now expect a possible tightening of U.S. crude supplies (read: Here's Why Oil ETFs Likely to Gain in the Near Term).
Regional Banks
SPDR S&P Regional Banking ETF (KRE - Free Report) – Up 19.5%
During the second quarter, a significant shift in deposit trends was noticed in the American banking system, with regional banks gaining ground over their larger counterparts as the pint-sized banks offered higher yields to boost deposits.
JPMorgan Chase, Bank of America, Citigroup and Wells Fargo, the four largest banks by assets, experienced a net decline of $262 billion in deposits compared to the previous year, per a Yahoo Finance article. Per the article, several regional banks showed an increase in deposits despite higher rates and the crisis in Q1. Plus, regional bank stocks are available at a cheaper valuation. A steepening yield curve and an improving U.S. economy are the other positives.
China
Invesco Golden Dragon China ETF (PGJ - Free Report) – Up 18.3%
After shying away from China, sentiment for investing in that country improved in July. Net foreign buying in mainland Chinese equities marked their best month since April, official data showed. There is a reason behind the development too.
China cut the key interest rate in 10 months amid post-Covid recovery slowdown in June, which boosted the markets in July. China’s housing ministry announced plans to make it easier for people to buy property, boosting its ailing real estate sector.
China ETFs, in fact, bounced back sharply last week as global hedge funds scooped up Chinese equities following the latest politburo meeting. The meeting clearly indicated support for capital markets and signaled the introduction of bigger easing measures to shore up the economy.