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Weak June Jobs Data Likely to Boost These ETF Areas
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Key Takeaways
Weak payrolls data strengthens the case for Fed rate cuts, aiding growth-focused ETFs.
Healthcare ETFs remain resilient as the sector continues adding jobs in June.
Gold and emerging market ETFs may gain from a softer dollar and lower rates.
The U.S. economy added 57,000 jobs in June 2025, well below a downwardly revised 129,000 in May and forecasts of 110,000. It is the lowest job gain in four months, following three consecutive months of stronger-than-expected gains, per Trading Economics.
Average hourly earnings for all employees on U.S. private nonfarm payrolls rose 0.3% over a month to $37.64 in June 2026, the same pace as in May and matching market forecasts.
Below, we have highlighted some of the areas and their related exchange-traded funds (ETFs) that will likely see smooth trading in the days ahead in light of the June jobs data (read: Top-Performing ETF Areas of 1H 2026).
Winning ETF Areas in Focus
Healthcare
Healthcare employment remained on an upward trajectory in June, rising by 22,000 jobs, but at a slower pace than the average monthly gain over the prior 12 months (+38,000). In June, hospitals added 9,000 jobs.
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. The fund has 30% exposure to the pharma industry, followed by 22.32% exposure to the healthcare providers & services industry, about 22% focus on Health Care Equipment & Supplies, 17.1% focus on the biotech sector and 8.7% focus on the life sciences tools & services.
Technology
The jobs data may lead the Fed to refrain from raising interest rates in the near term. A low-rate environment is generally favorable for growth-oriented technology stocks. Investors should note that higher interest rates increase companies' financing costs and reduce the value of their future earnings, making high-growth firms appear less attractive. State Street Technology Select Sector SPDR ETF (XLK - Free Report) should thus gain ahead.
Gold
Chances of a dovish Fed in the coming days may weigh on the U.S. dollar. A weaker U.S. dollar generally leads to higher demand for gold, pushing its price upward as it becomes more affordable for buyers holding other currencies.
Since a dovish Fed means a low-rate environment, non-yielding assets, such as gold, become preferable to investors. Gold is often viewed as an inflation-protected asset. SPDR Gold Trust (GLD - Free Report) should gain ahead.
Emerging Markets
iShares MSCI Emerging Markets ETF (EEM - Free Report) may benefit from a weaker dollar and a low-rate U.S. environment. Easing Iran tensions may improve the risk appetite for emerging markets (EM), although geopolitical threats are not entirely over for the EM space.
Note that the EEM ETF allocates about 10% of its portfolio to Taiwan Semiconductor Manufacturing Co. Ltd. (TSM - Free Report) , and the stock is an AI beneficiary. Several emerging market ETFs have a cheaper valuation than the S&P 500 (read: Emerging Markets ETFs Soar in May: Here's Why).
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Weak June Jobs Data Likely to Boost These ETF Areas
Key Takeaways
The U.S. economy added 57,000 jobs in June 2025, well below a downwardly revised 129,000 in May and forecasts of 110,000. It is the lowest job gain in four months, following three consecutive months of stronger-than-expected gains, per Trading Economics.
Average hourly earnings for all employees on U.S. private nonfarm payrolls rose 0.3% over a month to $37.64 in June 2026, the same pace as in May and matching market forecasts.
Below, we have highlighted some of the areas and their related exchange-traded funds (ETFs) that will likely see smooth trading in the days ahead in light of the June jobs data (read: Top-Performing ETF Areas of 1H 2026).
Winning ETF Areas in Focus
Healthcare
Healthcare employment remained on an upward trajectory in June, rising by 22,000 jobs, but at a slower pace than the average monthly gain over the prior 12 months (+38,000). In June, hospitals added 9,000 jobs.
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. The fund has 30% exposure to the pharma industry, followed by 22.32% exposure to the healthcare providers & services industry, about 22% focus on Health Care Equipment & Supplies, 17.1% focus on the biotech sector and 8.7% focus on the life sciences tools & services.
Technology
The jobs data may lead the Fed to refrain from raising interest rates in the near term. A low-rate environment is generally favorable for growth-oriented technology stocks. Investors should note that higher interest rates increase companies' financing costs and reduce the value of their future earnings, making high-growth firms appear less attractive. State Street Technology Select Sector SPDR ETF (XLK - Free Report) should thus gain ahead.
Gold
Chances of a dovish Fed in the coming days may weigh on the U.S. dollar. A weaker U.S. dollar generally leads to higher demand for gold, pushing its price upward as it becomes more affordable for buyers holding other currencies.
Since a dovish Fed means a low-rate environment, non-yielding assets, such as gold, become preferable to investors. Gold is often viewed as an inflation-protected asset. SPDR Gold Trust (GLD - Free Report) should gain ahead.
Emerging Markets
iShares MSCI Emerging Markets ETF (EEM - Free Report) may benefit from a weaker dollar and a low-rate U.S. environment. Easing Iran tensions may improve the risk appetite for emerging markets (EM), although geopolitical threats are not entirely over for the EM space.
Note that the EEM ETF allocates about 10% of its portfolio to Taiwan Semiconductor Manufacturing Co. Ltd. (TSM - Free Report) , and the stock is an AI beneficiary. Several emerging market ETFs have a cheaper valuation than the S&P 500 (read: Emerging Markets ETFs Soar in May: Here's Why).