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Biotech ETFs surged, with ARKG gaining 28.4% in the past month.
China's tech-focused KSTR jumped 20% as investor sentiment improved.
Insurance and healthcare services ETFs outperformed on higher-rate expectations.
Wall Street delivered a strong performance over the past month (as of July 3, 2026).State Street SPDR S&P 500 ETF Trust SPY has gained about 1% over the past month, the Nasdaq-100-based Invesco QQQ Trust, Series 1 (QQQ - Free Report) has added about 1.1% over the past month, and the State Street SPDR Dow Jones Industrial Avg ETF Trust (DIA - Free Report) outperformed its peers, returning about 3.6%.
Key Events of June
The Federal Reserve left interest rates unchanged in mid-June for the fourth straight policy meeting, keeping the benchmark federal funds rate in the 3.5-3.75% range. The decision was unanimous, marking the first unanimous vote since last June.
The meeting was also the first under the new Fed Chair Kevin Warsh. While the Fed kept rates on hold, its projections suggest that policymakers are leaning toward keeping borrowing costs higher for longer.
Several officials now signal rate hikes later this year, as quoted on Yahoo Finance. The tone of the meeting probably triggered concerns about rising rates, which benefited the value-centric Dow Jones more than the growth-centric Nasdaq-100 and the S&P 500.
Alphabet Joins Dow Jones
Alphabet GOOGL officially entered the Dow Jones Industrial Average, earning one of Wall Street's most recognizable blue-chip distinctions in June-end. The addition marked a major milestone for the Dow Jones index, shifting its focus away from traditional telecommunications toward artificial intelligence and other key tech areas (read: Alphabet Joins Dow Jones: ETF Likely to Benefit).
Upbeat Earnings
Total S&P 500 earnings are expected to increase by 23.7% in the June quarter of 2026 compared with the same period last year, while revenues are expected to rise 11.4% year over year.
Note that investor sentiment improved considerably during the second quarter as worries surrounding the AI trade subsided and geopolitical tensions appeared to be moving toward resolution.
Inside the Iran War
Following large-scale U.S.-Israel strikes on Iranian military infrastructure in February 2026, the United States and Iran engaged in months of warfare. The conflict severely disrupted global oil routes when Iran moved to block the Strait of Hormuz.
However, by mid-2026, the two nations signaled a ceasefire, bringing active hostilities to a halt and moving toward an extended period of negotiations mediated by Pakistan. As a result, United States Oil Fund LP (USO - Free Report) has lost about 21.9% over the past month (as of July 3, 2026).
Leveraged ETF Winners
Against this backdrop, below we highlight a few winning ETF areas of the past one month (as of July 3, 2026).
ARKG is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies across multiple sectors, including health care, information technology, materials, energy, and consumer discretionary, that are relevant to the Fund’s investment theme of the genomics revolution. The fund charges 75 bps in fees.
Health Care Services
State Street SPDR S&P Health Care Services ETF (XHS - Free Report) – Up 18.1%
The underlying S&P Health Care Services Select Industry Index represents the health care sub-industry portion of the S&P Total Stock Market Index. The fund charges 35 bps in fees.
China
KraneShares SSE Star Market 50 Index ETF (KSTR - Free Report) – Up 20.0%
The underlying SSE Science and Technology Innovation Board 50 Index comprises of 50 largest companies listed on the SSE Science and Technology Innovation Board as determined by market capitalization and liquidity. The fund charges 89 bps in fees.
Insurance
State Street SPDR S&P Insurance ETF (KIE - Free Report) – Up 12.6%
The underlying S&P Insurance Select Industry Index represents the insurance segment of the S&P Total Market Index. The fund charges 35 bps in fees.
View the Zacks #1 Rank List
Image: Bigstock
Best ETF Areas of June
Key Takeaways
Wall Street delivered a strong performance over the past month (as of July 3, 2026).State Street SPDR S&P 500 ETF Trust SPY has gained about 1% over the past month, the Nasdaq-100-based Invesco QQQ Trust, Series 1 (QQQ - Free Report) has added about 1.1% over the past month, and the State Street SPDR Dow Jones Industrial Avg ETF Trust (DIA - Free Report) outperformed its peers, returning about 3.6%.
Key Events of June
The Federal Reserve left interest rates unchanged in mid-June for the fourth straight policy meeting, keeping the benchmark federal funds rate in the 3.5-3.75% range. The decision was unanimous, marking the first unanimous vote since last June.
The meeting was also the first under the new Fed Chair Kevin Warsh. While the Fed kept rates on hold, its projections suggest that policymakers are leaning toward keeping borrowing costs higher for longer.
Several officials now signal rate hikes later this year, as quoted on Yahoo Finance. The tone of the meeting probably triggered concerns about rising rates, which benefited the value-centric Dow Jones more than the growth-centric Nasdaq-100 and the S&P 500.
Alphabet Joins Dow Jones
Alphabet GOOGL officially entered the Dow Jones Industrial Average, earning one of Wall Street's most recognizable blue-chip distinctions in June-end. The addition marked a major milestone for the Dow Jones index, shifting its focus away from traditional telecommunications toward artificial intelligence and other key tech areas (read: Alphabet Joins Dow Jones: ETF Likely to Benefit).
Upbeat Earnings
Total S&P 500 earnings are expected to increase by 23.7% in the June quarter of 2026 compared with the same period last year, while revenues are expected to rise 11.4% year over year.
Note that investor sentiment improved considerably during the second quarter as worries surrounding the AI trade subsided and geopolitical tensions appeared to be moving toward resolution.
Inside the Iran War
Following large-scale U.S.-Israel strikes on Iranian military infrastructure in February 2026, the United States and Iran engaged in months of warfare. The conflict severely disrupted global oil routes when Iran moved to block the Strait of Hormuz.
However, by mid-2026, the two nations signaled a ceasefire, bringing active hostilities to a halt and moving toward an extended period of negotiations mediated by Pakistan. As a result, United States Oil Fund LP (USO - Free Report) has lost about 21.9% over the past month (as of July 3, 2026).
Leveraged ETF Winners
Against this backdrop, below we highlight a few winning ETF areas of the past one month (as of July 3, 2026).
Biotech
ARK Genomic Revolution ETF (ARKG - Free Report) – Up 28.4%
ARKG is an actively managed ETF that seeks long-term growth of capital by investing under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies across multiple sectors, including health care, information technology, materials, energy, and consumer discretionary, that are relevant to the Fund’s investment theme of the genomics revolution. The fund charges 75 bps in fees.
Health Care Services
State Street SPDR S&P Health Care Services ETF (XHS - Free Report) – Up 18.1%
The underlying S&P Health Care Services Select Industry Index represents the health care sub-industry portion of the S&P Total Stock Market Index. The fund charges 35 bps in fees.
China
KraneShares SSE Star Market 50 Index ETF (KSTR - Free Report) – Up 20.0%
The underlying SSE Science and Technology Innovation Board 50 Index comprises of 50 largest companies listed on the SSE Science and Technology Innovation Board as determined by market capitalization and liquidity. The fund charges 89 bps in fees.
Insurance
State Street SPDR S&P Insurance ETF (KIE - Free Report) – Up 12.6%
The underlying S&P Insurance Select Industry Index represents the insurance segment of the S&P Total Market Index. The fund charges 35 bps in fees.