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The Zacks Analyst Blog Highlights Consumer Discretionary Select Sector SPDR ETF, JPMorgan BetaBuilders U.S. Small Cap Equity ETF, WisdomTree Cloud Computing ETF, Vanguard High Dividend Yield ETF and SPDR S&P Semiconductor ETF

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For Immediate Release

Chicago, IL – December 4, 2024 – Zacks.com announces the list of ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) , JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC - Free Report) , WisdomTree Cloud Computing ETF (WCLD - Free Report) , Vanguard High Dividend Yield ETF (VYM - Free Report) and SPDR S&P Semiconductor ETF (XSD - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

5 ETFs to Buy for December

Last month witnessed a surge in stock values. The S&P 500, the Dow Jones and the Nasdaq recorded 5%, 6% and 7.5% gains, respectively, in November. The Russell 2000, which focuses on small-cap stocks, outperformed with a monthly surge of 10.8%. Note that 2024 has been a stellar year for equities, with the S&P 500 up over 26%, putting it on track for its best performance since 2021.

Notably, the year has seen no market correction (a pullback of 10% or more). Historically, the S&P 500 averages a correction once every 346 days, but recent years have been stronger. Since 2000, half of all years have avoided corrections entirely, highlighting the resilience of the current bull market, per CNBC.

The S&P 500 typically closes out December with gains when it’s up 20%-plus through November. It is going to be a strong year with no corrections. Historically, Wall Street tends to perform strongly in December. Specifically, the S&P 500 has exhibited positive returns in December 74% of the time since 1928, which is more frequent than any other month.

As far as rates are concerned, the benchmark treasury yields remained at an elevated level. However, the benchmark yield slumped to 4.18% to close out November 30, 2024, from 4.37% recorded at Nov. 1, 2024. Meanwhile, the same yield reached a closing high of 4.44% on Nov. 13, 2024. A moderation in Trump trade at the end of November led to the decline in long-term bond yields.

Against this backdrop, below we highlight a few ETFs that have a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) and topped the performance list in the past one month. This means that these exchange-traded funds (ETFs) have further upside potential even after a stupendous rally in November.

ETFs in Focus

Consumer Discretionary Select Sector SPDR ETF – Zacks Rank #2 – Up 11% past month

Americans have spent moderately this year over the five-day Thanksgiving weekend thanks to significant discounts across various categories. The month of December includes the heart of the holiday season. And we expect consumers to shop discretionary items in the Christmas month (read: Cyber Week Sales Put These ETFs in Focus).

JPMorgan BetaBuilders U.S. Small Cap Equity ETF – Zacks Rank #2 – Up 10.2% past month

Small-cap stocks have a cheaper valuation than larger ones. Trump’s “America First” agenda and the tariff war should boost this segment. Hence, investors with a strong stomach for risks can try out small-cap stocks. A decent GDP growth momentum and a resilient consumer base also supports the rally in small-cap stocks.

WisdomTree Cloud Computing ETF – Zacks Rank #2 – Up 18.8% Past Month

Cloud computing, a sector dominated by Amazon, Microsoft, and Alphabet, remains a promising area. The rise of generative AI is a tailwind for the cloud space. The global market for Professional Cloud Services is expected to witness a CAGR of 17.5% during the forecast period 2023-2030, per Research And Markets.

Vanguard High Dividend Yield ETF – Zacks Rank #2 – Up 5.5% Past Month

The underlying FTSE High Dividend Yield Index, which consists of common stocks of companies that pay dividends that generally are higher than average. Dividends offer a safer exposure in an uncertain investing backdrop. The fund yields 2.7% annually and charges 6 bps in fees.

SPDR S&P Semiconductor ETF– Zacks Rank #1 – Up 8% Past Month

Semiconductor stocks have surged this year, driven by the AI boom, as these companies provide vital components for AI development. Semiconductor ETFs have also been the best-performing ETFs of the last decade, with chips playing a crucial role in various products, from smartphones to data centers. With AI mania remaining strong, the chip space has every reason to outperform ahead.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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