For Immediate Release

Chicago, IL – August 2, 2024 – Zacks.com announces the list of stocks 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: First Trust NASDAQ ABA Community Bank Index Fund (QABA Quick QuoteQABA - Free Report) , iShares U.S. Home Construction ETF (ITB Quick QuoteITB - Free Report) , SPDR S&P Telecom ETF (XTL Quick QuoteXTL - Free Report) , ARK Genomic Revolution ETF (ARKG Quick QuoteARKG - Free Report) and iShares MSCI Global Silver and Metals Miners ETF (SLVP Quick QuoteSLVP - Free Report)

Here are highlights from Thursday’s Analyst Blog:

5 Sector ETFs That Outperformed with Double-Digit Gains in July

July witnessed the "Great Rotation" in the U.S. stock market on growing expectations of the Fed cutting rates in September and a resurgence in Trump trade. Investors shunned the hot technology stocks in favor of smaller companies and other sectors, which are the bigger beneficiaries of the Fed rate cuts.

The Dow Jones Industrial Average, which missed the rally in the first half of 2024, was the outperformer last month. The blue-chip index gained 4.4% in July — its best month since December. Meanwhile, the S&P 500 advanced 1.1% and the tech-heavy Nasdaq Composite Index slipped 0.8% amid the steep decline in "Mag 7" (read: Should You Buy the Dip in "Mag 7" and Big Tech ETFs?).

We have highlighted five top-performing ETFs from different sectors that were the leaders in July.

The world's biggest economy's growth has been resilient amid 23-year high interest rates and accelerated in the second quarter, primarily driven by solid consumer spending and higher business investment. Inflation showed the first monthly drop since 2020 and the slowest annual price gain since March 2021. All these deepened the market's confidence that the Fed would begin cutting interest rates in September. The Fed, in its latest meeting, also signaled the same (read: 5 ETFs Making the Most of the Great Market Rotation).

The market rally is broadening beyond the technology sector, as a rate cut will benefit the companies with higher financing costs. Small-cap companies have a higher level of debt and lower rates that generally lead to reduced borrowing costs. This helps small businesses expand their operations more easily and increases profitability, in turn stimulating economic growth. As small-cap companies are more domestically tied, these are poised to outperform when the economy improves.

Cyclical stocks, which are heavily reliant on borrowing costs, got a boost compared to cash-rich, mega-cap technology stocks, which have been riding a wave of optimism around artificial intelligence.

Let's dig into the details of the abovementioned ETFs:

First Trust NASDAQ ABA Community Bank Index Fund – Up 19.5%

First Trust NASDAQ ABA Community Bank Index Fund offers exposure to the largest banks and thrifts or their holding companies that are designated as banks by the Industry Classification Benchmark. It tracks the NASDAQ OMX ABA Community Bank Index, holding 124 stocks in its basket (read: Bank ETFs Soar on Trump Trade, September Rate Cut Bets).

First Trust NASDAQ ABA Community Bank Index Fund has accumulated $79.4 million in its asset base and trades in a volume of around 19,000 shares a day on average. It charges 60 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

iShares U.S. Home Construction ETF – Up 19.3%

iShares U.S. Home Construction ETF provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index.

With an AUM of $3.2 billion, iShares U.S. Home Construction ETF holds a basket of 44 stocks, with a heavy concentration on the top two firms. The product charges 40 bps in annual fees and trades in a heavy volume of around 2 million shares a day, on average. iShares U.S. Home Construction ETF has a Zacks ETF Rank #3 with a High risk outlook.

SPDR S&P Telecom ETF – Up 15.7%

SPDR S&P Telecom ETF provides exposure to the telecommunications segment and follows the S&P Telecom Select Industry Index. It holds 39 stocks in its basket, with communications equipment making up 54.2% of the assets, while alternative carriers and integrated telecommunication services round off the next two spots with double-digit exposure each.

SPDR S&P Telecom ETF has amassed $76 million in its asset base and charges 35 bps in annual fees. It trades in a lower average daily volume of 8,000 shares and has a Zacks ETF Rank #3 with a Medium risk outlook (read: Assessing the Impact of Q2 Earnings on Telecom ETFs).

ARK Genomic Revolution ETF – Up 14.8%

ARK Genomic Revolution ETF is an actively managed fund focused on companies that are likely to benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments, and advancements in genomics into their business.

With an AUM of $1.4 billion, ARK Genomic Revolution ETF holds 41 stocks in its basket and has 0.75% in expense ratio.

iShares MSCI Global Silver and Metals Miners ETF – Up 14.7%

iShares MSCI Global Silver and Metals Miners ETF follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors exposure to companies that derive the majority of revenues from silver exploration or metals mining. It holds 29 stocks in its basket, with Canadian firms making up the lion's share at 66.8%, while the United States and Mexico round off the next spots.

iShares MSCI Global Silver and Metals Miners ETF has an AUM of $234.9 million and an average daily volume of about 156,000 shares. It charges 39 bps in annual fees.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It's a little-known chemical company that's up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks' Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

https://www.zacks.com                                                   

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.