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Wall Street wrapped up June with gains, buoyed by the continued artificial intelligence (AI) boom. The tech-heavy Nasdaq Composite Index outperformed, rising 6%, while the S&P 500 Index and Dow Jones gained 3.5% and 1.1%, respectively.
In fact, the S&P 500 topped the 5,500 level after hitting the 5,400 threshold earlier in June, underscoring strong confidence. Technology remained the best-performing sector in June (read: 5 Technology Stocks Powering S&P 500 ETF This Year).
We have highlighted four top-performing ETFs from different sectors that have led the way in June. These are Valkyrie Bitcoin Miners ETF (WGMI - Free Report) , Roundhill Magnificent Seven ETF (MAGS - Free Report) , Virtus Lifesci Biotech Products ETF (BBP - Free Report) and Alerian MLP ETF AMLP (AMLP - Free Report) .
In a historic milestone, NVIDIA (NVDA) rallied to become the world's most valuable company, surpassing Microsoft (MSFT) early in June, but was unable to sustain its #1 position. Now, the three stocks — NVIDIA, Apple (AAPL), and Microsoft— are in a race to become the world’s most valuable company and hit a market capitalization of $4 trillion on surging enthusiasm over AI capabilities. E-commerce giant Amazon.com Inc. (AMZN) also topped $2 trillion in market cap for the first time in the latest trading session (read: Tech ETFs Faceoff: Apple Vs. Microsoft).
In the last FOMC meeting last month, U.S. policymakers penciled in just one rate cut for this year and indicated four cuts in 2025. Low rates are generally favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets.
Consumer sentiment improved in June with the University of Michigan consumer sentiment index rising to 68.2 from the preliminary 65.6 reading. The one-year inflation outlook fell to 3% from 3.3% expected in May.
Let’s dig into the details of the abovementioned ETFs:
Though Bitcoin price dropped below $60,000, investors’ interest in the mining sector surged following Core Scientific's (CORZ) deal with AI company CoreWeave in early June. Core Scientific signed a 200 megawatts (MW) artificial intelligence deal with the cloud computing firm, triggering a rally in the bitcoin mining sector.
Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 20 stocks in its basket with a double-digit concentration on the top two firms. It has amassed $135.1 million in its asset base while trading in an average daily volume of 358,000 shares. WGMI charges 75 bps in annual fees.
Roundhill Magnificent Seven ETF is the first-ever ETF that offers investors equal-weight exposure to the “Magnificent Seven” stocks. It has amassed $478.6 million in its asset base and charges 29 bps in fees per year. MAGS trades in an average daily volume of 200,000 shares (read: 5 Sector ETFs That Beat the Market in Q2).
Biotech firms are racing toward weight loss drugs, a potential money minter for the sector. Virtus LifeSci Biotech Products ETF follows the LifeSci Biotechnology Products Index, which measures the performance of biotechnology companies with at least one drug therapy approved by the FDA. Holding 56 stocks, Virtus LifeSci Biotech Products ETF has accumulated AUM of $20.6 million and charges 79 bps in fees per year. It trades in a volume of 1,000 shares a day on average and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Master Limited Partnerships (MLPs) represent an attractive investment option for income-focused investors as these pay out substantially all of their income to investors on a regular basis. These have relatively consistent and predictable cash flows, making them safer and less risky than other plays in the broader energy space. In addition to high yields and the potential for capital appreciation, MLPs also have lower volatility and provide diversification benefits to the portfolio. The rise in oil prices also bodes well for the sector.
AMLP offers exposure to energy infrastructure companies via a portfolio of MLPs. It tracks the Alerian MLP Infrastructure Index, a capped, float-adjusted, capitalization-weighted composite of energy infrastructure MLPs that earn the majority of their cash flow from midstream activities. Holding 14 stocks in its basket, AMLP is the most popular and most liquid ETF in the MLP space, with AUM of $8.7 billion and an average daily volume of 1.2 million shares. It charges 85 bps in fees per year from investors.
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4 Best-Performing Sector ETFs of June
Wall Street wrapped up June with gains, buoyed by the continued artificial intelligence (AI) boom. The tech-heavy Nasdaq Composite Index outperformed, rising 6%, while the S&P 500 Index and Dow Jones gained 3.5% and 1.1%, respectively.
In fact, the S&P 500 topped the 5,500 level after hitting the 5,400 threshold earlier in June, underscoring strong confidence. Technology remained the best-performing sector in June (read: 5 Technology Stocks Powering S&P 500 ETF This Year).
We have highlighted four top-performing ETFs from different sectors that have led the way in June. These are Valkyrie Bitcoin Miners ETF (WGMI - Free Report) , Roundhill Magnificent Seven ETF (MAGS - Free Report) , Virtus Lifesci Biotech Products ETF (BBP - Free Report) and Alerian MLP ETF AMLP (AMLP - Free Report) .
In a historic milestone, NVIDIA (NVDA) rallied to become the world's most valuable company, surpassing Microsoft (MSFT) early in June, but was unable to sustain its #1 position. Now, the three stocks — NVIDIA, Apple (AAPL), and Microsoft— are in a race to become the world’s most valuable company and hit a market capitalization of $4 trillion on surging enthusiasm over AI capabilities. E-commerce giant Amazon.com Inc. (AMZN) also topped $2 trillion in market cap for the first time in the latest trading session (read: Tech ETFs Faceoff: Apple Vs. Microsoft).
In the last FOMC meeting last month, U.S. policymakers penciled in just one rate cut for this year and indicated four cuts in 2025. Low rates are generally favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets.
Consumer sentiment improved in June with the University of Michigan consumer sentiment index rising to 68.2 from the preliminary 65.6 reading. The one-year inflation outlook fell to 3% from 3.3% expected in May.
Let’s dig into the details of the abovementioned ETFs:
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 23.7%
Though Bitcoin price dropped below $60,000, investors’ interest in the mining sector surged following Core Scientific's (CORZ) deal with AI company CoreWeave in early June. Core Scientific signed a 200 megawatts (MW) artificial intelligence deal with the cloud computing firm, triggering a rally in the bitcoin mining sector.
Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 20 stocks in its basket with a double-digit concentration on the top two firms. It has amassed $135.1 million in its asset base while trading in an average daily volume of 358,000 shares. WGMI charges 75 bps in annual fees.
Roundhill Magnificent Seven ETF (MAGS - Free Report) – Up 8.1%
Roundhill Magnificent Seven ETF is the first-ever ETF that offers investors equal-weight exposure to the “Magnificent Seven” stocks. It has amassed $478.6 million in its asset base and charges 29 bps in fees per year. MAGS trades in an average daily volume of 200,000 shares (read: 5 Sector ETFs That Beat the Market in Q2).
Virtus LifeSci Biotech Products ETF (BBP - Free Report) – Up 6.3%
Biotech firms are racing toward weight loss drugs, a potential money minter for the sector. Virtus LifeSci Biotech Products ETF follows the LifeSci Biotechnology Products Index, which measures the performance of biotechnology companies with at least one drug therapy approved by the FDA. Holding 56 stocks, Virtus LifeSci Biotech Products ETF has accumulated AUM of $20.6 million and charges 79 bps in fees per year. It trades in a volume of 1,000 shares a day on average and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Alerian MLP ETF AMLP (AMLP - Free Report) – Up 5.5%
Master Limited Partnerships (MLPs) represent an attractive investment option for income-focused investors as these pay out substantially all of their income to investors on a regular basis. These have relatively consistent and predictable cash flows, making them safer and less risky than other plays in the broader energy space. In addition to high yields and the potential for capital appreciation, MLPs also have lower volatility and provide diversification benefits to the portfolio. The rise in oil prices also bodes well for the sector.
AMLP offers exposure to energy infrastructure companies via a portfolio of MLPs. It tracks the Alerian MLP Infrastructure Index, a capped, float-adjusted, capitalization-weighted composite of energy infrastructure MLPs that earn the majority of their cash flow from midstream activities. Holding 14 stocks in its basket, AMLP is the most popular and most liquid ETF in the MLP space, with AUM of $8.7 billion and an average daily volume of 1.2 million shares. It charges 85 bps in fees per year from investors.