- GLD has gained 18.9% year-to-date, with Comex gold futures now trading around $1,265 per ounce, which has helped riskier stock ETFs shine
- QQQ, which tracks the Nasdaq-100, rose 7.3% over past month
- IWM gained 8.2% over past month
- SPY returned 7.2% over past month
- Among sector bets, energy has been the best performer in the six months after a gold rally, followed by materials and technology sectors
Safe-haven gold experienced a stellar rally this year. However, as defensive bets run their course, stock exchange traded funds could enjoy a rally on a return to a risk-on environment.
The SPDR Gold Shares (NYSEArca: GLD) gained 18.9% year-to-date, with Comex gold futures now trading around $1,265 per ounce.
Gold’s big quarterly gain could be a bullish signal for stocks. According to Kensho historical data in quarters where gold increased 10% or more since 1990, U.S. benchmarks have reliably surged higher in the six months after gold’s move, reports Deirdre Bosa for CNBC.
Notably, relatively riskier indices, like the Nasdaq Composite and small-cap Russel 2000, have outperformed the S&P 500 and blue chip Dow Jones Industrial Average.
Over the past month, the PowerShares QQQ (NasdaqGM: QQQ), which tracks the Nasdaq-100, rose 7.3%, iShares Russell 2000 ETF (NYSEArca: IWM) gained 8.2% and SPDR S&P 500 ETF (NYSEArca: SPY) returned 7.2%.
Among sector bets, energy has been the best performer in the six months after a gold rally, followed by materials and technology sectors.