The month of December has been one of the strongest periods of the year for equities, and some areas of market and sector-related exchange traded funds may stand out during the Santa Claus rally.
Over the past month, the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and Vanguard 500 Index (NYSEArca: VOO) have gained 0.4%. Year-to-date, the S&P 500 ETFs rose 3.0%.
After a weak November, the S&P 500 may enjoy a better run this month. According to Kensho data, over the past 25 years, the S&P 500 has been positive 80% of the time for an average gain of 1.78%, reports Bob Pisani for CNBC.
According to the Stock Trader’s Almanac, since 1950, December has been the best month for the S&P 500, with an average gain of 1.7%.
Looking at a sector-by-sector basis, industrials have been the best performing area in December for the past 25 years, showing a positive return 84% of the time for an average 2.93% gain.