ETF Performance Report: July
July 31st at 2:55pm by Tom Lydon
The equities market, along with stock exchange traded funds, sprinted through July, reaching new record highs, after the quick correction in June.
The Dow Jones Industrial Average was 4.3% higher over July. Meanwhile, the Nasdaq Composite increased 6.3% and the S&P 500 rose 5.1%.
The top non-leveraged ETFs over July include the Guggenheim Solar ETF (NYSEArca: TAN) up 19.8%, PureFunds ISE Junior Silver ETF (NYSEArca: SILJ) up 18.0% and the SPDR S&P Biotech ETF (NYSEArca: XBI) up 15.9%.
The solar sector has been outshining the broader markets for most of the year as the industry capitalizes on the greater push for alternative energy sources. [Solar ETFs Shine As China Expands Capacity]
After the swift exodus from precious metals, the lower prices have enticed investors back into silver. Additionally, the downtrodden miner industry is finally catching a break with investors pouncing on undervalued silver producers. [Obscure Silver Miners ETF Up 10% This Month]
Biotech stocks are surging on innovative drug applications filed with the FDA, robust earnings and positive drug trials, according to Minyanville.
The worst performing non-leveraged ETFs for the month include the ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) down 25.9%, ProShares VIX Mid-Term Futures ETF (NYSEArca: VIXM) down 14.9% and Market Vectors Indonesia Small-Cap ETF (NYSEArca: IDXJ) down 11.1%.
The start of July started off normal enough, with the broader markets plodding along. But after back-to-back session gains, the equities market suddenly had momentum going. With economic data showing improvements but not enough to stoke concerns of a Fed tapering, markets continued to climb.
Bernanke revealed that the highly accommodative policy will stay intact for the foreseeable future, particularly pointing out the relatively high U.S. unemployment rate, which fueled the rally in equities in mid-July.
Additionally, the broad markets continued to strengthen on favorable earnings results for the second quarter.
After setting new record highs, the broad indices drifted into sideways trading ahead of the Fed meeting on the last day of the month.
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Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.