With only a few trading days left, September, known for being a weak month for stock markets, is on track to wrap up as a positive month. While recession fears and geopolitical tension resulted in risk-off trading in the initial weeks of the month, rate-cut optimism and investors’ confidence that the economy is headed for a soft landing buoyed the stock market in the final weeks. The Dow Jones and the S&P 500 touched a series of record highs. 

We have highlighted five top-performing ETFs from different sectors that were the leaders in September. These include KraneShares Electric Vehicles & Future Mobility Index ETF (KARS Quick QuoteKARS - Free Report) , Themes Silver Miners ETF (AGMI Quick QuoteAGMI - Free Report) , U.S. Global Jets ETF (JETS Quick QuoteJETS - Free Report) , Reaves Utilities ETF (UTES Quick QuoteUTES - Free Report) and Sprott Copper Miners ETF (COPP Quick QuoteCOPP - Free Report) .

The Federal Reserve kicked off the easing monetary era by slashing key interest rates by 50 bps to 4.75%-5% after holding it at a 23-year high for 14 consecutive months since July 2023. This marked the first rate cut since 2020 to address slowing economic growth and showed greater confidence in the fact that inflation is moving sustainably toward the 2% target level. 

The central bank projects two more rate cuts of another 50 bps in its final two meetings this year, due in November and December. It indicates another 100-bps rate cut next year and 50-bps in 2026, which means four rate cuts in 2025 and two in 2026 (read: 5 Sector ETFs Scaling New Highs on Fed Rate Cuts). 

Lower interest rates lead to reduced borrowing costs, which help businesses expand their operations easily, resulting in increased profitability. This, in turn, stimulates economic growth and provides a boost to the stock market.

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

KraneShares Electric Vehicles & Future Mobility Index ETF (KARS Quick QuoteKARS - Free Report) – Up 15%

Electric vehicle (EV) stocks gained momentum this month on speculation of higher EV sales. KraneShares Electric Vehicles & Future Mobility Index ETF offers global exposure to companies engaged in the production of electric vehicles and their components. It tracks the Bloomberg Electric Vehicles Index, which includes issuers engaged in electric vehicle production, autonomous driving, shared mobility, lithium and copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing and electric infrastructure businesses. 

KraneShares Electric Vehicles & Future Mobility Index ETF has amassed $77.2 million in its asset base while trading in a volume of 16,000 shares per day on average. It charges 72 bps in fees per year.

Themes Silver Miners ETF (AGMI Quick QuoteAGMI - Free Report) – Up 14.1%

Silver surged on Fed rate cuts, a projected fourth annual market deficit, increased industrial demand, rising geopolitical tension and uncertainties ahead of general elections in major economies. Themes Silver Miners ETF led the way in May. It offers exposure to companies that derive their revenues from silver mining by tracking the STOXX Global Silver Miners Index.

Themes Silver Miners ETF holds 26 stocks in its basket and charges 35 bps in annual fees. It has amassed $0.6 million in its asset base since its inception in May. 

U.S. Global Jets ETF (JETS Quick QuoteJETS - Free Report) – Up 13.3%

Airlines are flying higher this month on strong demand, decelerating capacity and lower oil prices. U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 60 securities and charges 60 bps on an annual basis (read: Sector ETFs to Lose/Win from Lower Oil Prices). 

U.S. Global Jets ETF has gathered $1.1 billion in its asset base while seeing a heavy trading volume of nearly 2 million shares a day. JETS has a Zacks ETF Rank #2 (Buy) with a High risk outlook. 

Reaves Utilities ETF (UTES Quick QuoteUTES - Free Report) – Up 11.2%

The utility sector has gained immense investor attraction as a new emerging AI play, especially after the technology lost momentum on overvaluation concerns. It is one of the biggest beneficiaries of a rate cut as these offer higher returns due to their outsized yields. Further, the stock market volatility has raised the appeal for utility stocks as a defensive investment or safe haven amid economic or political turmoil. Reaves Utilities ETF is the only actively managed ETF that seeks to provide returns through a combination of capital appreciation and income, primarily through investments in utility stocks. It holds 17 stocks with a heavy concentration on the top three firms.

UTES has AUM of $186.3 million and trades in an average daily volume of 33,000 shares. It charges 49 bps in annual fees (read: 5 ETFs Up More Than 35% in the First Nine Months).

Sprott Copper Miners ETF (COPP Quick QuoteCOPP - Free Report) – Up 11.2%

Copper prices gained over the past few weeks, driven by renewed investor demand and market optimism sparked by the Fed's recent interest rate cut after four years. Sprott Copper Miners ETF is the only pure-play ETF focused on large-, mid- and small-cap copper mining companies that provide a critical mineral necessary for the clean energy transition. It follows the Nasdaq Sprott Copper Miners Index and holds 52 stocks in its basket. Canadian firms take the largest share at 35.3%, followed by the United States (28.3%) and Chile (9.8%). 

Sprott Copper Miners ETF has accumulated $28.6 million in its asset base and trades in a lower volume of 15,000 shares. It charges 65 bps in annual fees (read: ETFs to Consider as Copper Prices Reach 2-Month High).